U.S. Foreclosure Activity Declines As Government Moratorium Passes One-Year Mark
Foreclosure Starts and Completed Foreclosures Decrease 1 Percent from Last Month, 17 Percent Compared to April 2020
ATTOM Data Solutions, licensor of the nation’s most comprehensive foreclosure data and parent company to RealtyTrac (www.realtytrac.com), a foreclosure listings portal, released its April 2021 U.S. Foreclosure Market Report, which shows there were a total of 11,810 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — down 1 percent from a month ago and down 17 percent from a year ago.
“Foreclosure activity continues to trend near historic lows as we enter the 14th month of the Federal Government’s foreclosure and eviction moratorium,” said Rick Sharga, executive vice president at RealtyTrac, an ATTOM Data Solutions company. “Coupled with the CARES Act mortgage forbearance program, the government and mortgage servicing industry have worked together exceptionally well to prevent millions of unnecessary foreclosures. Because of these programs, and the nearly 90 percent success rate of borrowers resuming mortgage payments as they exit forbearance, a large influx of foreclosures when the programs expire seems very, very unlikely.”
Delaware, Nevada and Illinois had the highest foreclosure rates
Nationwide one in every 11,636 housing units had a foreclosure filing in April 2021. States with the highest foreclosure rates were Delaware (one in every 5,700 housing units with a foreclosure filing); Nevada (one in every 5,738 housing units); Illinois (one in every 5,890 housing units); Florida (one in every 6,375 housing units); and New Jersey (one in every 6,390 housing units).
Among the 220 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in April 2021 were Macon, GA (one in every 2,334 housing units with a foreclosure filing); Provo, UT (one in every 3,295 housing units); Pensacola, FL (one in every 3,492 housing units); Cleveland, OH (one in every 3,550 housing units); and Beaumont, TX (one in every 3,561 housing units).
Those metropolitan areas with a population greater than 1 million, with the worst foreclosure rates in April 2021 including Cleveland, OH were: Las Vegas, NV (one in every 4,838 housing units); Riverside, CA (one in every 5,020 housing units); Jacksonville, FL (one in every 5,243 housing units); and Chicago, IL (one in every 5,324 housing units).
Foreclosure starts increase monthly in 24 states nationwide
Lenders started the foreclosure process on 6,355 U.S. properties in April 2021, down 1 percent from last month and down 26 percent from a year ago.
“April 2020 was the first full month of the foreclosure moratorium, and foreclosure activity that month dropped by 75 percent compared to April 2019,” Sharga noted. “Given that, it’s a little surprising to see foreclosures drop by another 24 percent compared to last year, but virtually all of the foreclosure activity today is made up of vacant and abandoned properties, or commercial loans, which often don’t have the same protections as loans on residential properties.”
Counter to the national trend, states that had at least 100 foreclosure starts in April 2021 and saw the greatest monthly increase in foreclosure starts included: Washington (up 76 percent); New York (up 53 percent); Kentucky (up 47 percent); Alabama (up 28 percent); and Indiana (up 26 percent).
In looking more granular, those counties that had the greatest number of foreclosure starts in April 2021 included: Los Angeles County, CA (259 foreclosure starts); Cook County, IL (256 foreclosure starts); Clark County, NV (142 foreclosure starts); Riverside County, CA (98 foreclosure starts); and Maricopa County, AZ (86 foreclosure starts).
Foreclosure completion numbers decrease 1 percent from last month
Lenders repossessed 1,555 U.S. properties through completed foreclosures (REOs) in April 2021, down 1 percent from last month and down 41 percent from last year.
Those states that had the greatest number of REOs in April 2021, included: California (190 REOs); Florida (176 REOs); Illinois (127 REOs); Texas (111 REOs); and New Jersey (109 REOs).
Those major metropolitan statistical areas (MSAs) with a population greater than 1 million that saw the greatest number of REOs in April 2021 included: Chicago, IL (113 REOs); Philadelphia, PA (90 REOs); Riverside, CA (53 REOs); Los Angeles, CA (43 REOs); and Miami, FL (35 REOs).
About ATTOM Data Solutions
ATTOM Data Solutions provides foreclosure data licenses that can power various enterprise industries including real estate, insurance, marketing, government, mortgage and more. ATTOM multi-sources from 3,000 counties property tax, deed, mortgage, 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.
About RealtyTrac (Powered by ATTOM’s Property Data)
RealtyTrac.com is the premier foreclosure listing and search portal for investors and consumers looking to gain a competitive edge in the distressed market. Realtytrac.com grants access to insight that is typically only available to real estate professionals.
