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:
