2023 Mid-Year Foreclosure Rates Update

July 25th, 2023

Foreclosure rates continue to tick up, along with processing time

In the first half of 2023, states across the nation posted 185,580 foreclosure filings (default notices, scheduled auctions or bank repossessions), according to the ATTOM Mid-Year 2023 US Foreclosure Market Report. That’s up 13% from the first six months of 2022, with one in 752 housing units in foreclosure. US lenders foreclosed on nearly 23,000 properties, a 9% increase year over year, but 40% down from Q1-Q2 2020.

Key takeaways

Foreclosures are taking longer to process. In Q2 ’23, the average foreclosure took roughly 1,200 days, the longest timelines on record. One reason: In some states, foreclosure prevention programs like the Homeowner Assistance Fund (HAF) have pushed out foreclosure timelines, in some cases for years.

ATTOM Data CEO Rob Barber sees a troubling trend. “Similar to the first half of 2022, foreclosure activity across the United States maintained its upward trajectory, gradually approaching pre-pandemic levels in the first half of 2023,” he said. “Although overall foreclosure activity remains below historical norms, the notable surge in foreclosure starts indicates that we may continue to see a rise in foreclosure activity in the coming years.”

What’s happening by state?

Maryland led the states with the biggest jumps in foreclosures during the first half of 2023 versus the same period in 2022, followed closely by Oregon and Alaska. Illinois, New Jersey, Maryland, Delaware and Ohio reported the highest foreclosure rates overall.

California, Florida, Texas, New York and Illinois experienced the most foreclosure starts in the first half of 2023. Most of those same states (Michigan, Illinois, Pennsylvania, California and New York) saw 1,350 housing units repurchased by the lending bank (REO).

The data below is from ATTOM, which collects data from 3,000-plus US counties that make up more than 99 percent of the population. Here’s a closer look at the states BlueHub SUN serves:

In the first half of 2023, Connecticut ranked seventh among states with the highest foreclosure filings (0.16 percent of housing units). In June, one in 2,272 households had a foreclosure filing. 

Delaware fared among the worst with the fourth highest foreclosure rate (0.23% of all housing units). In June, one in 2,171 households had a foreclosure filing. 

Illinois ranked first for foreclosure filings (0.25% of all housing units) and fifth in foreclosure starts (7,995) from January to June. Chicago reported foreclosure filings for just over a quarter of its housing units, the sixth highest rate among cities with over 200,000 residents.

Maryland’s foreclosure filings rose 100% year over year, the highest increase of any state. The northernmost state on the Chesapeake Bay also faced the nation’s third highest foreclosure rate at 0.23% of housing units with a foreclosure filing in the first six months of the year.

Massachusetts ranked 34th in the US, posting some of the nation’s lowest foreclosure rates in the first half of 2023, with only 2,342 properties in foreclosure. From May to June, however, that number ticked up by 6.5%.

Cumulatively, Michigan saw the highest number of foreclosure sales revert back to the lender. The Great Lakes State also posted the nation’s longest average foreclosure times at 2,601 days.

New Jersey trailed Illinois with the second highest foreclosure filing rate (0.24% of housing units). Atlantic City saw the second highest rate of cities with over 200,000 residents. In June, one in 2,189 New Jersey properties had a foreclosure filing. 

Ohio ranked fifth for foreclosure filings (0.20% of all housing units). And Cleveland, with close to 368,000 residents, had the highest filing rate among major metropolitan cities with 0.33% of housing units in foreclosure.

Pennsylvania ranked 17th of all US states for foreclosure filings per capita, and Philadelphia saw a quarter of housing units had a foreclosure filing from January to June, the 9th highest rate of larger cities. Pennsylvania’s Housing Finance Agency processed more than 18,000 Homeowner Assistance Fund applications during that period.

The Ocean State held the 38th spot in the nation for foreclosure filings per capita. In the first half of 2023, only 361 housing units were in foreclosure. Yet despite a healthy start to the year, foreclosure filings jumped 13% from May to June.

Wisconsin fared best among the states BlueHub SUN serves, ranking close to the bottom at 41st in the nation for total foreclosure filings per capita. In the first half of 2023, only 1,735 properties were in foreclosure. In fact, the total number of foreclosures fell from May to June.

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