Downward Trend Continues for Foreclosure Filings
ATTOM Data Solutions‘ July 2020 U.S. Foreclosure Market Report revealed a total of 8,892 U.S. properties with foreclosure filings (i.e., default notices, scheduled auctions or bank repossessions in July 2020. That’s down 4% percent from a month ago and 83% from a year ago.
“Even as mortgage delinquency rates climb, foreclosure activity continues to be artificially low due to moratoria put in place by the federal and state governments,” said Rick Sharga, executive vice president at RealtyTrac. “It’s inevitable that there will be a significant increase in foreclosures once these moratoria have expired, although it’s unlikely that we’ll see default rates reach the levels we saw during the Great Recession.”
Nationwide one in every 15,337 housing units saw a foreclosure filing during the time period. Three states—Delaware (1 in 6,489 housing units), South Carolina (1 in 7,328) and Maine (1 in 7,542)—posted the highest state foreclosure rates. New Mexico and California posted rates just behind those three states.
Metropolitan areas with a population greater than 1 million that had the worst July 2020 foreclosure rates were Louisville, Kentucky (1 in every 5,383 housing units); Riverside, California (1 in every 7,345 ); Baltimore, Maryland (1 in every 8,139); Cincinnati, Ohio (1 in every 8,289); and St. Louis, Missouri (1 in every 8,514).
Foreclosure starts were down across the country. A total of 4,530 U.S. properties started the foreclosure process in July 2020, which is 7% decrease from June 2020 and 83% from a year ago.
States bucking the national trend and posting month-over-month increases in foreclosure starts included Connecticut (up 54%); Michigan (up 42%); Missouri (up 34%); Virginia (up 32%); and California (up 1%).
Bank repossessions continued to drop to their lowest levels, with lenders foreclosing (REO) on a total of 2,163 U.S. properties in July 2020, down 14% from last month and 80% from a year ago, the lowest level since ATTOM began tracking in 2005.