Foreclosure Starts Decrease 7 Percent from Last Month

ATTOM, a curator of land, property, and real estate data, released its October 2023 U.S. Foreclosure Market Report, which shows there were a total of 34,472 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — down 6 percent from a month ago but up 6 percent from a year ago.

“Foreclosure filings continue to paint a concerning picture,” said Rob Barber, CEO at ATTOM. “With foreclosure filings ranging from 31,557 in January 2023 to 34,472 in October 2023, it’s evident that challenges in the housing market persist. While we anticipate a likely decline in the coming months due to the holiday season and other seasonal patterns, we do foresee a continued uptick in 2024 as foreclosure filings make their way through the pipeline.”

Delaware, Ohio and New Jersey post highest foreclosure rates

Nationwide one in every 4,051 housing units had a foreclosure filing in October 2023. States with the highest foreclosure rates were Delaware (one in every 2,432 housing units with a foreclosure filing); Ohio (one in every 2,492 housing units); New Jersey (one in every 2,550 housing units); Maryland (one in every 2,565 housing units); and South Carolina (one in every 2,569 housing units).

Among the 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in October 2023 were Cleveland, OH (one in every 1,403 housing units with a foreclosure filing); Atlantic City, NJ (one in every 1,547 housing units); Spartanburg, SC (one in every 1,708 housing units); Bakersfield, CA (one in every 1,785 housing units); and Jacksonville, NC (one in every 1,848 housing units).

Those metropolitan areas with a population greater than 1 million with the worst foreclosure rates in October 2023, including Cleveland, OH, were: Miami-Fort Lauderdale, FL (one in every 2,180 housing units); Riverside, CA (one in every 2,254 housing units); Houston, TX (one in every 2,269 housing units); and Philadelphia, PA (one in every 2,323 housing units).

Greatest numbers of foreclosure starts in Texas, California, and Florida

Lenders started the foreclosure process on 23,343 U.S. properties in October 2023, down 7 percent from last month but up 7 percent from a year ago.

States that had the greatest number of foreclosure starts in October 2023 included: Texas (2,966 foreclosure starts); California (2,747 foreclosure starts); Florida (2,319 foreclosure starts); New York (1,405 foreclosure starts); and Georgia (1,054 foreclosure starts).

Those major metropolitan areas with a population greater than 1 million that had the greatest number of foreclosure starts in October 2023 included: New York, NY (1,412 foreclosure starts); Houston, TX (1,132 foreclosure starts); Miami-Fort Lauderdale, FL (941 foreclosure starts); Los Angeles, CA (808 foreclosure starts); and Chicago, IL (705 foreclosure starts).

Foreclosure completion numbers remain unchanged from last month

Lenders repossessed 3,332 U.S. properties through completed foreclosures (REOs) in October 2023, down less than 1 percent from last month and down 20 percent from last year.

States that had the greatest number of REOs in October 2023, included: Pennsylvania (297 REOs); Illinois (273 REOs); Ohio (231 REOs); California (219 REOs); and Michigan (216 REOs).

Those major metropolitan statistical areas (MSAs) with a population greater than 1 million that saw the greatest number of REOs in October 2023 included: Chicago, IL (213 REOs); New York, NY (166 REOs); Philadelphia, PA (102 REOs); Washington, DC (79 REOs); and Detroit, MI (76 REOs).