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Lenders started the third quarter with a total of 67,249 foreclosures in the U.S., up by 167 percent from a year earlier, according to a new data center report by ATTO real estate.
The growth rate is close to the level before pandemic and is 1% higher than it was in last quarter.
The foreclosure process usually begins when the borrower receives notice of mortgage default for four consecutive months, but many lenders issue a notice of default after 90 days (three months).
According to ATTOM’s 3rd Annual Foreclosure Market Report 2022, there are 92,634 foreclosed properties, including foreclosures or bank foreclosures. This is also up 3% from a year ago (104%) and up 3% from the previous quarter.
Additionally, a total of 31,836 properties were seized in September, up 62% on the same period last year, but down 8% on the previous month.
But Rick Sharga, ATTOM’s senior vice president of market intelligence, said housing starts have picked up since government foreclosure restrictions were lifted (June 30 on mortgages) but are still well below pre-pandemic.
“The job losses are mirroring other parts of the economy, as the unemployment rate remains at historic lows and mortgage defaults are at their lowest levels since before the outbreak of COVID-19,” he said.
The states with the most bankruptcies in the third quarter were California (7,368), followed by Florida (6,671), Texas (6,217), Illinois (4,702), and New York (3,997).
The report also found that New York topped the list of 223 metropolitan areas with the best startups during this period, followed by Chicago (3,950) and Los Angeles (2,275).
On the other hand, delinquency rates fell in metropolitan areas with populations greater than 1 million, including Tulsa, Oklahoma (-60%), Kansas City, Missouri (-26%), and Birmingham, Alabama (-25%). . Nationally, 1 in 1,517 households was in foreclosure in the third quarter, and the states with the highest foreclosure rates this season are Illinois (1 in 694), Delaware (1 in 825) and New Jersey (1 in 855), South Carolina (1 in 971), and Ohio (1 in 1,027).
Bank closures are on the rise
According to the report, lenders removed 10,515 properties from foreclosures (REOs) in the third quarter, up 39 percent from a year ago and up 18 percent from the previous quarter, but fewer homes were returned to lenders at the end of foreclosures forced. .
“In fact, borrowers rented nearly three times as many homes in the second quarter of 2019 compared to the second quarter of 2022,” he said.
We think this could be an indication that the lender is using the money to pay off the loan and sell the house instead of selling more houses. There is a risk of losing capital in a reverse auction.
The states with the most foreclosures (REOs) in the third quarter were Illinois (1,331), Michigan (729), and New York (695).
Take Aways
- One in 4,413 properties was occupied in September.
- States with the highest foreclosure rates in September 2022: Illinois (1 of 1,959), Nevada (1 of 2,473), New Jersey (1 of 2,649), Maryland (1 of 2,825), and Ohio (2,885 of 1).
- A total of 21,869 properties were in foreclosure in September 2022, a 113% increase from a year earlier.
- Lenders completed foreclosures on 3,509 properties in September, up 31% from a year earlier but down 11% from August 2022.
Reference Source: MPA
