U.S. Foreclosure Activity Sees Notable Increase In January 2024

Completed Foreclosures (REOs) Increase Monthly in 19 States; Foreclosure Starts Up Monthly and Annually Nationwide

Irvine, CA – Feb. 13, 2024 (PRNewswire) ATTOM, a leading curator of land, property, and real estate data, today released its January 2024 U.S. Foreclosure Market Report, which shows there were a total of 33,270 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions – up 5 percent from a year ago, and up 10 percent from the prior month.

“We observed a slight uptick in foreclosure filings, which may be partially attributed to the typical post-holiday progression of filings through the legal system,” said Rob Barber, CEO at ATTOM. “However, other external factors may be at play such as escalating interest rates, inflation, employment shifts and other market dynamics. We remain vigilant in monitoring these trends to understand their full impact on foreclosure activity.”

Foreclosure completion numbers increase monthly in 19 states
Lenders repossessed 3,954 U.S. properties through completed foreclosures (REOs) in January 2024, up 1 percent from a year ago and up 13 percent from last month – the first month over month increase in completed foreclosures since July 2023.

States that had at least 50 or more REOs and that saw the greatest monthly increase in January 2024 included: Michigan (up 200 percent); Minnesota (up 47 percent); California (up 43 percent); Pennsylvania (up 36 percent); and Missouri (up 34 percent).

Among the 224 metropolitan statistical areas with a population of at least 200,000, that saw the greatest number of REOs included: Detroit, MI (609 REOs); Chicago, IL (194 REOs); New York, NY (163 REOs); Philadelphia, PA (107 REOs); and San Francisco, CA (107 REOs).

Highest foreclosure rates in Delaware, Nevada, and Indiana
Nationwide one in every 4,236 housing units had a foreclosure filing in January 2024. States with the highest foreclosure rates were Delaware (one in every 2,269 housing units with a foreclosure filing); Nevada (one in every 2,272 housing units); Indiana (one in every 2,499 housing units); Maryland (one in every 2,588 housing units); and New Jersey (one in every 2,647 housing units).

Those major metropolitan statistical areas (MSAs) with a population greater than 200,000, with the highest foreclosure rates in January 2024 were Spartanburg, SC (one in every 1,579 housing units with a foreclosure filing); Columbia, SC (one in every 1,651 housing units); Cleveland, OH (one in every 1,742 housing units); Detroit, MI (one in every 1,799 housing units); and Las Vegas, NV (one in every 1,923 housing units).

Other than Cleveland, Detroit and Las Vegas, among the metropolitan areas with a population greater than 1 million, those with the worst foreclosure rates in January 2024 included: Riverside, CA (one in every 1,944 housing units); and Indianapolis, IN (one in every 2,235 housing units).

Foreclosure starts increase monthly and annually
Lenders started the foreclosure process on 21,770 U.S. properties in January 2024, up 6 percent from last month and up 5 percent from a year ago.

Those states that saw the greatest number of foreclosures starts in January 2024 included: California (2,719 foreclosure starts); Texas (2,613 foreclosure starts); Florida (2,330 foreclosure starts); New York (1,341 foreclosure starts); and Illinois (913 foreclosure starts).

Among those major metropolitan statistical areas with a population of at least 200,000, those with the greatest number of foreclosure starts in January 2024, included: New York, NY (1,470 foreclosure starts); Houston, TX (1,015 foreclosure starts); Los Angeles, CA (817 foreclosure starts); Miami, FL (804 foreclosure starts); and Chicago, IL (763 foreclosure starts).

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 licensesproperty data APIsreal estate market trendsproperty navigator and more. Also, introducing our newest innovative solution, that offers immediate access and streamlines data management – ATTOM Cloud.

Media Contact:
Jennifer von Pohlmann
949-412-3897
Jennifer.vonpohlmann@attomdata.com

Data and Report Licensing:
949.502.8313
datareports@attomdata.com 

SOURCE ATTOM

U.S. Mortgage Delinquency Rate Fell to New Low in December 2021

Overall delinquency reached its lowest point in CoreLogic recorded history thanks to improving employment and growing equity

Irvine, CA – March 08, 2022 (BUSINESS WIRE) CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report for December 2021.

For the month of December, 3.4% of all mortgages in the U.S. were in some stage of delinquency (30 days or more past due, including those in foreclosure), representing a 2.4 percentage point decrease compared to December 2020, when it was 5.8%. This is the lowest recorded overall delinquency rate in the U.S. since at least January 1999.

To gain a complete view of the mortgage market and loan performance health, CoreLogic examines all stages of delinquency. In December 2021, the U.S. delinquency and transition rates, and their year-over-year changes, were as follows:

  • Early-Stage Delinquencies (30 to 59 days past due): 1.2%, down from 1.4% in December 2020.
  • Adverse Delinquency (60 to 89 days past due): 0.3%, down from 0.5% in December 2020.
  • Serious Delinquency (90 days or more past due, including loans in foreclosure): 1.9%, down from 3.9% in December 2020 and a high of 4.3% in August 2020.
  • Foreclosure Inventory Rate (the share of mortgages in some stage of the foreclosure process): 0.2%, down from 0.3% in December 2020. This is the lowest foreclosure rate recorded since at least January 1999.
  • Transition Rate (the share of mortgages that transitioned from current to 30 days past due): 0.6%, down from 0.8% in December 2020.
CoreLogic National Overview of Mortgage Loan Performance, featuring December 2021 Data (Graphic: Business Wire)
CoreLogic Change in Overall Delinquency Rate for Select States, featuring December 2021 Data (Graphic: Business Wire)
CoreLogic Foreclosure and Delinquency Rates for Select Metropolitan Areas, featuring December 2021 Data (Graphic: Business Wire)

The U.S. unemployment rate declined for the sixth straight month in December 2021 to the lowest since the beginning of the COVID-19 pandemic. Meanwhile, national home prices increased by 18.5 percent year over year, helping more owners regain equity. The combination of these dynamics pushed the overall mortgage delinquency and foreclosure rates to the lowest levels that CoreLogic has recorded in more than two decades.

“Nonfarm employment grew by 6.7 million workers during 2021, the largest one-year increase, supporting income growth and keeping more families current on their loans,” said Dr. Frank Nothaft, chief economist at CoreLogic. “Nonetheless, places hit hard by natural disasters have experienced a spike in missed payments. Serious delinquency rates for December in the Houma-Thibodaux metro area were nearly two percentage points higher than immediately before Hurricane Ida.”

State and Metro Takeaways:

  • In December 2021, all states logged year-over-year declines in their overall delinquency rate. The states with the largest declines were: Nevada (down 3.7 percentage points), Hawaii (down 3.5 percentage points), Florida (down 3.4 percentage points), New Jersey (down 3.3 percentage points) and New York (down 3.2 percentage points).
  • All but one U.S. metropolitan area posted at least a small annual decrease in the overall delinquency rate. The one area where delinquencies were unchanged in December 2021 was Houma-Thibodaux, Louisiana. Houma was impacted by Hurricane Ida in the fall, but its overall December delinquency rate improved from October and November.

The next CoreLogic Loan Performance Insights Report will be released on April 12, 2022, featuring data for January 2022. For ongoing housing trends and data, visit the CoreLogic Intelligence Blog: www.corelogic.com/intelligence.

Methodology

The data in The CoreLogic LPI report represents foreclosure and delinquency activity reported through December 2021. The data in this report accounts for only first liens against a property and does not include secondary liens. The delinquency, transition and foreclosure rates are measured only against homes that have an outstanding mortgage. Homes without mortgage liens are not subject to foreclosure and are, therefore, excluded from the analysis. CoreLogic has approximately 75% coverage of U.S. foreclosure data.

Source: CoreLogic

The data provided is for use only by the primary recipient or the primary recipient’s publication or broadcast. This data may not be re-sold, republished or licensed to any other source, including publications and sources owned by the primary recipient’s parent company without prior written permission from CoreLogic. Any CoreLogic data used for publication or broadcast, in whole or in part, must be sourced as coming from CoreLogic, a data and analytics company. For use with broadcast or web content, the citation must directly accompany first reference of the data. If the data is illustrated with maps, charts, graphs or other visual elements, the CoreLogic logo must be included on screen or website. For questions, analysis or interpretation of the data, contact Robin Wachner at newsmedia@corelogic.com. Data provided may not be modified without the prior written permission of CoreLogic. Do not use the data in any unlawful manner. This data is compiled from public records, contributory databases and proprietary analytics, and its accuracy is dependent upon these sources.

About CoreLogic

CoreLogic is a leading global property information, analytics and data-enabled solutions provider. The company’s combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.

CORELOGIC and the CoreLogic logo are trademarks of CoreLogic, Inc. and/or its subsidiaries. All other trademarks are the property of their respective owners.

Contacts

Robin Wachner
CoreLogic
newsmedia@corelogic.com

Short Sale vs. Foreclosure: What’s the Difference for Buyers?

Wondering what the difference is between a short sale and a foreclosure? In the following video, from the realtor.com YouTube channel, we learn about the differences and how savvy home buyers can get a bargain.

Foreclosures and short sales are both options for homeowners who fall behind on mortgage payments, but it’s important to understand the difference between these two processes. So if you’re struggling to pay your mortgage and aren’t sure what to do, allow this primer on foreclosures vs. short sales to set you straight. Here’s what these things are, their pros and cons, plus how to tell whether a short sale or foreclosure is the better option for you.

What is a short sale? A short sale happens when a homeowner owes more on the mortgage balance than the market value or sale price of the property at the point the owner wants to sell. For a short sale, the homeowner is essentially asking the mortgage lender (typically a bank) to accept a lesser amount than the total mortgage owed. For example, if the homeowner sells the house for $250,000, but the remaining mortgage loan balance is $300,000, the seller is essentially $50,000 “short” on paying the lender back. That’s a short sale.

What is a foreclosure? Foreclosure is a legal process that happens when a homeowner (although “borrower” might be a more appropriate term from the perspective of the lender) is unable to make mortgage loan payments for a significant period of time. After three to six months of missed mortgage payments, a lender will issue a Notice of Default with the County Recorder’s Office. This notice is to let the borrower know he is at risk of foreclosure—and when they foreclose, the current owner will be evicted.

What is the difference between a short sale and foreclosure? Short sale and foreclosure are similar in that they’re both financial options for individuals who own homes but find themselves in financial distress. Both also have a negative impact for your tax return, credit score and credit report, and future prospects getting a loan. But short sales and foreclosures differ greatly in process.