Third Quarter Foreclosure Activity at Lowest Level Since 2005
A mid-October report released by ATTOM Data Solutions shows a total of 143,105 U.S. properties with foreclosure filings in third quarter 2019. That’s down 6% from the second quarter and 19% from a year ago, marking the lowest level since the second quarter of 2005.
U.S. foreclosure activity in the third quarter was 49 percent below the pre-recession average of 278,912 properties with foreclosure filings per quarter between first quarter 2006 and third quarter 2007—the 12th consecutive quarter in which U.S. foreclosure activity has registered below the pre-recession average.
Still, Todd Teta, chief product officer at ATTOM Data Solutions, said: “This is not to say that everything in the latest foreclosure picture is rosy. Some states have seen their foreclosure rates increase this year, which could cause some concern. But overall, the foreclosure numbers reflect a market in which buyers can afford their homes and lenders remain careful in loaning to home buyers who have little chance of repaying.”
During the third quarter, lenders began the foreclosure process on 78,394 U.S. properties, down 8% from the previous quarter and down 15% from a year ago.
The 14 states posting year-over-year increases in foreclosure starts in third quarter 2019 included Montana (up 33%); Georgia (up 32%); Washington (up 16%); Louisiana (up 15%); and Michigan (up 12%).
Several metropolitan statistical areas also countered the national trend. Of the 220 metropolitan statistical areas analyzed in the report, 66 posted a year-over-year increase in foreclosure starts in the third quarter. Those markets with at least 1 million people that posted year-over-year increases included Atlanta, Georgia (up 37%); Columbus, Ohio (up 27%); San Antonio, Texas (up 24%); Portland, Oregon (up 22%); and Tucson, Arizona (up 21%).
The states with the highest foreclosure rates during the time period analyzed were Delaware, New Jersey, Maryland, Illinois and Florida.
Among 220 metropolitan statistical areas analyzed in the report, those with the highest foreclosure rates in the third quarter were Atlantic City, New Jersey; Trenton, New Jersey; Rockford, Illinois; Fayetteville, North Carolina; and Peoria, Illinois.
Lenders repossessed 34,432 U.S. properties through foreclosure (REO) in the third quarter. That’s up 6% from the second quarter but down 33% from a year ago.
Properties foreclosed in the third quarter had been in the foreclosure process an average of 841 days, up from 716 days in the second quarter and up from 713 days during the same period a year ago.
View the full report here.
