ATTOM: 1Q Foreclosure Starts Up 29%; REO at 3-Year High

ATTOM, Irvine, Calif., said first quarter foreclosure filings rose by 6 percent from the fourth quarter and by 22 percent from a year ago.

The company’s quarterly U.S. Foreclosure Market Report showed 95,712 U.S. properties with a foreclosure filings during the first quarter. It also reported 36,617 U.S. properties with foreclosure filings in March, up 20 percent from the previous month and up 10 percent from a year ago — the 23rd consecutive month with a year-over-year increase in U.S. foreclosure activity.

“Despite efforts made by government agencies and policy makers to try and reduce foreclosure rates, we are seeing an upward trend in foreclosure activity,” said ATTOM CEO Rob Barber. “This unfortunate trend can be attributed to a variety of factors, such as rising unemployment rates, foreclosure filings making their way through the pipeline after two years of government intervention and other ongoing economic challenges. However, with many homeowners still having significant home equity, that may help in keeping increased levels of foreclosure activity at bay.”

The report said 65,346 U.S. properties started the foreclosure process in the first quarter, up 3 percent from the previous quarter and up 29 percent from a year ago. States with the greatest number of foreclosures starts were California (6,867); Texas (6,764); Florida (5,724); New York (4,345); and Illinois (4,006).

Among major metros with a population of 200,000 or more, those with the greatest number of foreclosures starts in the first quarter were New York (4,674); Chicago (3,549); Los Angeles (2,210); Houston (2,120); and Philadelphia (1,985).

Nationwide one in every 1,459 housing units had a foreclosure filing in the first quarter. States with the highest foreclosure rates were Illinois (one in every 762 housing units); Delaware (one in every 812 housing units); New Jersey (one in every 824 housing units); Maryland (one in every 897 housing units); and Nevada (one in every 947 housing units).

Among 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in Q1 2023 were Fayetteville, N.C. (one in every 526 housing units); Cleveland, Ohio (one in 582); Atlantic City, N.J. (one in 661); Columbia, S.C. (one in 671); and Bakersfield, Calif. (one in 688).