A total of 357,062 U.S. properties had foreclosure filings—default notices, scheduled auctions and bank repossessions—in 2023, up 10% from 2022 but down 28% from 2019, according to a new report from ATTOM.
ATTOM’s Year-End Foreclosure Market Report found that those 357,062 properties with foreclosure filings represented 0.26% of all housing units, up slightly from 0.23% in 2022, but down from 0.36 percent in 2019.
In addition, there were 30,314 properties with foreclosure filings in December, down 6% from the previous month and down 2% from a year ago. For Q4, there were a total of 92,896 properties with foreclosure filings, down 8% from the previous quarter but up 2% from a year ago.
Key highlights:
- Lenders started the foreclosure process on 270,222 properties in 2023, up 9% from 2022 and 193% from 2021, but down 20% from 2019.
- States that saw the greatest number of foreclosure starts included California (29,180); Texas (28,533); Florida (27,427); New York (17,330); and Illinois (13,764).
- Counter to the national trend, 6 states saw an increase in foreclosure starts from 2019. They included Indiana (+73%); Idaho (up 70%); Michigan (+15%); Nevada (+10%); and Minnesota (+9%).
- Lenders repossessed 42,090 properties through foreclosures (REO), down 2% from 2022 and 71% from 2019 (143,955).
- States that saw the greatest number of REOs included Illinois (3,814); Michigan (3,634); Pennsylvania (2,853); California (2,633); and New York (2,538).
- States with the highest foreclosure rates were New Jersey (0.46%); Illinois (0.42%); Delaware (0.41%); Maryland (0.40%); and Ohio (0.38%).
- Nationwide in Q4 2023, one in every 1,503 properties had a foreclosure filing.
- States with the highest foreclosure rates were Delaware (1 in every 903); New Jersey (1 in every 914); Ohio (one in every 922); Maryland (1 in every 943); and South Carolina (1 in every 995).
- Nationwide in December 2023, one in every 4,606 properties had a foreclosure filing.
- States with the highest foreclosure rates were Maryland (1 in every 2,570); Connecticut (one in every 2,660); New Jersey (1 in every 2,775); Ohio (1 in every 2,819); and Delaware (1 in every 2,967).
- 20,490 properties started the foreclosure process, down 8% from the previous month and 3% from a year ago.
- Lenders completed the foreclosure process on 3,503 properties, up 37% from the previous month but down 4% from a year ago.
Major takeaway:
“Reflecting on 2023, we see the recent rise in foreclosure activity as a market correction rather than a cause for alarm. It signals a return to more traditional patterns after years of volatility,” said Rob Barber, CEO at ATTOM. “Our data suggests that while foreclosure activity may fluctuate, it’s unlikely to approach the highs seen in the last decade. Instead, we foresee a market that is more reflective of broader economic trends, with foreclosure filings becoming a more predictable aspect of the housing landscape. This shift offers a silver lining—the opportunity for investors, homeowners, and industry professionals to plan and strategize with greater confidence and insight.”
For the full report, click here.
