Foreclosure rate update by state

The highs: Connecticut’s initial foreclosure filing (LIS) rates have risen above pre-pandemic levels each month this year and nearly double the Jan. 2020 marker in May 2022.

The lows: While it’s a troubling sign, the initial filing rates increase hasn’t yet impacted notice of NFS and REO numbers. In fact, the state had 29 foreclosure sales that did not go to third-party investors in May, down from 1,338 in January.

Note: Connecticut is a “mediation” state, where servicers must meet with mortgagors and a mediator before foreclosure. Servicers will be busy in the coming months, and foreclosure cases will likely require assistance from housing counselors. The state ranked 14th in the nation in total foreclosures in Q1 2022.

• LIS: Q1 2020 filings reached 1,032. Q2 2022 LIS filings hit a high of 2,713.
• NFS: Levels dropped from 363 in Q1 2020 to a low of 169 in Q2 2022.
• REO: Rates shrunk from a Q1 2020 high of 1,204 to a low of 29 in Q2 2022.
• TOTAL FORECLOSURES: Up from 2,599 in Q1 2020 to a high of 2,918 in Q2 2022.

The highs: Initial foreclosure filings (LIS) have been inching up each month in Delaware since the Consumer Financial Protection Bureau (CFPB) ended foreclosure restrictions on January 1, 2022. LIS levels rose 50% higher than pre-pandemic levels in May. The state ranked 6th in total U.S. foreclosures in Q1 2022.

The lows: Relatively low NFS and REO numbers signal that LIS have not yet worked their way to NFS filings. So expect a wave of NFS filings unless housing assistance funds or servicer flexibility offsets it or borrowers with equity decide to sell their homes.

Note: Only 68 homes were sold back to the servicer at a foreclosure sale from Dec 2021 - May 2022 versus 366 in January 2020 alone.

• LIS: Q1 2020 filings topped out at 770. Q2 2022 LIS filings climbed to 1,164.
• NFS: Levels dropped from 199 in Q1 2020 to a new low of 103 in Q2 2022.
• REO: Rates plunged from a Q1 2020 high of 316 to a low of 10 in Q2 2022.
• TOTAL FORECLOSURES: Steady rates, from 1,285 in Q1 2020 to a high of 1,279 in Q2 2022.

The highs: After an increase in initial foreclosure filings (LIS) each month since December 2021, Illinois passed its pre-pandemic initial NFS filing number in May.

The lows: May 2022 NFS numbers are less than half of the pre-pandemic benchmark.

Note: Unless borrowers facing foreclosure find a solution, Illinois will see a dramatic spike in NFS filings as they progress through the system. With one out of every 791 housing units in foreclosure in Q1 2022, the state has the highest foreclosure rate in the nation.

• LIS: Q1 2020 filings reached 16,183. Q2 2022 LIS filings hit a new high of 16,576.
• NFS: Levels dropped from 3,711 in Q1 2020 to a low of 2,166 in Q2 2022.
• REO: Rates went from a Q1 2020 high of 4,127 to a low of 234 in Q2 2022.
• TOTAL FORECLOSURES: Foreclosures dropped from a high 24,021 in Q1 2020 to 18,977 in Q2 2022.

The highs: In Q2, Maryland surpassed its pre-pandemic initial foreclosure filings (LIS) number with a 19% jump from Q1.

The lows: May NFS numbers were 29% of January 2020 levels, a hopeful sign for the state.

Note: As a mediation state, Maryland requires that mortgagors receive the opportunity to meet with a representative from the foreclosing entity, typically the servicer, which means that mediators can expect to be busy in upcoming months. The state ranked 11th in total U.S. foreclosures in Q1 2022.

• LIS: Q1 2020 filings reached 1,798. Q2 2022 LIS filings topped out at 2,111.
• NFS: Levels went from a Q1 2020 high of 1,058 to a low of 410 in Q2 2022.
• REO: Rates dove from a Q1 2020 high of 2,318 to a Q2 2022 low of 58.
• TOTAL FORECLOSURES: Still way down, from 5,174 in Q1 2020 to a high of 2,631 in Q2 2022.

The highs: May 2022 Massachusetts initial foreclosure filing (LIS) numbers nudged up 18% over January after rising each month since December 2021.

The lows: NFS filings declined each month since February 2022. May NFS filings were just 22% over January.

Note: One of two scenarios may be driving this trend. Either the foreclosures that servicers initiated in 2022 have yet to reach the NFS stage or borrowers sold their homes or found a solution to avoid filing an NFS. From December 2021 to May 2022, only 278 foreclosure sales advanced to an REO property. Keep in mind, however, that the average Massachusetts borrower has $62k in equity, the highest in New England. Third-party investors may have purchased a larger percentage of homes in foreclosure than before the pandemic. Massachusetts ranked 35th in total US foreclosures in Q1 2022.

• LIS: Q1 2020 filings totaled 2,421. Q2 2022 LIS filings rose as high as 2,522.
• NFS: Levels dropped from 492 in Q1 2020 to a new low of 183 in Q2 2022.
• REO: Rates went from a Q1 2020 high of 753 to a Q2 2022 low of 34.
• TOTAL FORECLOSURES: Still fairly flat, from 3,666 in Q1 2020 to a high of 2,739 in Q2 2022.

The highs: Notice of Trustee’s Sale (NTS) filings (Michigan’s initial foreclosure filing) have increased each month since December 2021 and doubled since CFPB foreclosure restrictions ended in January. REO filings are just 3.7% of pre-pandemic levels but NTS filings are 71% higher. REO numbers have increased each month since March 2022.

The lows: According to Corelogic, Michigan homeowners have an average of $28k in equity, one of the lowest numbers in the country.

Note: Michigan borrowers, especially those in lower income neighborhoods, may not be able to sell their homes and realize the equity. The state ranked 9th in total US foreclosures in Q1 2022.

• NFS: Levels dropped from a high of 2,385 in Q1 2020 to 1,433 in Q2 2022.
• REO: Rates went from a Q1 2020 high of 4,069 to a low of 132 in Q2 2022.
• TOTAL FORECLOSURES: Rates fell from 6,454 in Q1 2020 to a low of 1,565 in Q2 2022.

The highs: While initial foreclosure filings (LIS) in New Jersey have remained relatively flat since December 2021 and close to pre-pandemic levels in January 2022, they’re still among the highest per-property rates in the nation (technically the second highest with one in 792 housing units in foreclosure in Q1 ’22).

The lows: NFS filings are less than half of what they were prior to the pandemic. However, these numbers may eventually creep up.

Note: On the plus side, New Jersey’s housing assistance fund — Emergency Rescue Mortgage Assistance (ERMA) — offers up to $35k per applicant. Since the average homeowner has $56k in equity, ERMA assistance may prevent some foreclosure sales.

• LIS: Q1 2020 filings were 22,988. Q2 2022 LIS filings reached a high of 22,932.
• NFS: Levels fell from a high of 4,907 in Q1 2020 to a low of 2,193 in Q2 2022.
• REO: Rates plummeted from a Q1 2020 high of 4,867 to a Q2 2022 low of 83.
• TOTAL FORECLOSURES: Dropped from a high of 32,453 in Q1 2020 to a low of 25,129 in Q2 2022.

The highs: Ohio’s initial foreclosure filings (LIS) have increased each month since December 2021 and are now 14% above pre-pandemic levels. Ohio has the third highest foreclosure rates in the US, with one in every 991 housing units in foreclosure.

The lows: NFS filings have decreased or remained flat in each of the last three months, with only 879 REO filings from December 2021 to May 2022.

Note: Expect REO filings to increase as foreclosures work through the process.

• LIS: Q1 2020 filings reached 13,025. Q2 2022 LIS filings rose to a high of 14,646.
• NFS: Levels dipped from a high of 2,133 in Q1 2020 to a low of 1,539 in Q2 2022.
• REO: Rates plunged from a Q1 2020 high of 4,307 to a new low of 121 in Q2 2022.
• TOTAL FORECLOSURES: Fell from a high of 19,272 in Q1 2020 to a low of 15,179 in Q2 2022.

The highs: Initial foreclosure filing (LIS) levels rose 11.1% from January 2020 to May 2022.

The lows: NFS levels dropped 63.8% and REO levels fell 97.1% from January 2020 to the end of Q2 2022.

Note: Total foreclosures were down 31.9% in May 2022 from the January 2020 high of 17,196. The state ranked 21st in total Q1 2022 US foreclosures, according to the latest ATTOM reports.

• LIS: Q1 2020 filings reached 8,841. Q2 2022 LIS filings topped out at 9,826.
• NFS: Levels dropped from a high of 4,963 in Q1 2020 to a low of 1,717 in Q2 2022.
• REO: Rates plunged from a Q1 2020 high of 3,392 to a low of 97 in Q2 2022.
• TOTAL FORECLOSURES: Significant drop, from a 17,196 high in Q1 2020 to a Q2 2022 low of 11,165.

The highs: Notice of Trustee’s Sale (NTS) filings (Rhode Island’s initial foreclosure filing) have remained flat in the last four months.

The lows: These and NFS filings amount to half of pre-pandemic levels. REO and total foreclosures are significantly below Q1 2020 levels.

Note: The state ranked 39th in the nation in total Q1 2022 foreclosures, according to the latest ATTOM reports.

• NFS: Levels dropped from 254 in Q1 2020 to a low of 107 in Q2 2022.
• REO: Rates plunged from a Q1 2020 high of 169 to a Q2 2022 low of 9.
• TOTAL FORECLOSURES: A huge drop from a high of 451 in Q1 2020 to a low of 116 in Q2 2022.

The highs: Wisconsin initial foreclosure filings (LIS) have increased each month since the CFPB foreclosure moratorium ended.

The lows: Initial numbers for Wisconsin are still well below pre-pandemic levels (43% lower than January 2020).

Note: The state ranked 27th in the nation in total Q1 2022 foreclosures, according to the latest ATTOM reports.

• LIS: Q1 2020 filings reached 2,182. Q2 2022 LIS filings ended at 1,245.
• NFS: Levels dropped from a high of 695 in Q1 2020 to a low of 414 in Q2 2022.
• REO: Rates plunged from a Q1 2020 high of 802 to a low of 129 in Q2 2022.
• TOTAL FORECLOSURES: Way down from a high of 3,679 in Q1 2020 to a low of 1,788 in Q2 2022.