U.S. FORECLOSURE ACTIVITY SEES SPIKE IN MAY 2023

Foreclosure Starts Increase 4 Percent from Last Month,While Completed Foreclosures Increase 38 Percent

IRVINE, Calif., June 8, 2023 /PRNewswire/ -- ATTOM, a leading curator of land, property, and real estate data, today released its May 2023 U.S. Foreclosure Market Report, which shows there were a total of 35,196 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — up 7 percent from a month ago and up 14 percent from a year ago. 

"The recent increase in foreclosure filings nationwide indicates a trend that has been observed throughout the year, and what we have expected to occur," said Rob Barber, CEO at ATTOM. "This upward trajectory suggests the possibility of continued heightened activity, and with foreclosure completions seeing the largest monthly increase this year, we will continue to monitor the potential impacts this may have on the housing market."

Illinois, Maryland and New Jersey post highest foreclosure rates
Nationwide one in every 3,967 housing units had a foreclosure filing in May 2023. States with the highest foreclosure rates were Illinois (one in every 2,144 housing units with a foreclosure filing); Maryland (one in every 2,203 housing units); New Jersey (one in every 2,257 housing units); Florida (one in every 2,470 housing units); and Ohio (one in every 2,478 housing units).

Among the 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in May 2023 were Lakeland, FL (one in every 1,361 housing units with a foreclosure filing); Elkhart, IN (one in every 1,621 housing units); Cleveland, OH (one in every 1,622 housing units); Palm Bay, FL (one in every 1,647 housing units); and Ocala, FL (one in every 1,671 housing units).

Those metropolitan areas with a population greater than 1 million with the worst foreclosure rates in May 2023, including Cleveland, OH, were: Jacksonville, FL (one in every 1,699 housing units); Baltimore, MD (one in every 1,908 housing units); Chicago, IL (one in every 1,991 housing units); and Orlando, FL (one in every 2,049 housing units).

Greatest numbers of foreclosure starts in Florida, California and Texas
Lenders started the foreclosure process on 23,245 U.S. properties in May 2023, up 4 percent from last month and up 5 percent from a year ago.

States that had the greatest number of foreclosure starts in May 2023 included: Florida (2,901 foreclosure starts); California (2,451 foreclosure starts); Texas (2,286 foreclosure starts); Illinois (1,358 foreclosure starts); and New York (1,287 foreclosure starts).

Those major metropolitan areas with a population greater than 1 million that had the greatest number of foreclosure starts in May 2023 included: New York, NY (1,452 foreclosure starts); Chicago, IL (1,163 foreclosure starts); Houston, TX (811 foreclosure starts); Los Angeles, CA (700 foreclosure starts); and Philadelphia, PA (677 foreclosure starts).

Foreclosure completion numbers increase 38 percent from last month
Lenders repossessed 4,020 U.S. properties through completed foreclosures (REOs) in May 2023, up 38 percent from last month and up 41 percent from last year.

States that had the greatest number of REOs in May 2023, included: Illinois (352 REOs); Ohio (279 REOs); Michigan (271 REOs); Texas (240 REOs); and Pennsylvania (229 REOs).

Those major metropolitan statistical areas (MSAs) with a population greater than 1 million that saw the greatest number of REOs in May 2023 included: New York, NY (244 REOs); Chicago, IL (230 REOs); Detroit, MI (136 REOs); St. Louis, MO (112 REOs); and Washington, DC (91 REOs).

Report methodology
The ATTOM U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing entered into the ATTOM Data Warehouse during the month and quarter. Some foreclosure filings entered into the database during the quarter may have been recorded in the previous quarter. Data is collected from more than 3,000 counties nationwide, and those counties account for more than 99 percent of the U.S. population. ATTOM's report incorporates documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). For the annual, midyear and quarterly reports, if more than one type of foreclosure document is received for a property during the timeframe, only the most recent filing is counted in the report. The annual, midyear, quarterly and monthly reports all check if the same type of document was filed against a property previously. If so, and if that previous filing occurred within the estimated foreclosure timeframe for the state where the property is located, the report does not count the property in the current year, quarter or month.

About ATTOM
ATTOM provides premium property data to power products that improve transparency, innovation, efficiency, and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes, and enhances the real estate data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 30TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, property data APIs, real estate market trends, property navigator and more. Also, introducing our newest innovative solution, that offers immediate access and streamlines data management – ATTOM Cloud.

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SOURCE ATTOM