ATTOM [1] has released its Year-End 2023 U.S. Foreclosure Market Report [2], which revealed that foreclosure filings—default notices, scheduled auctions, and bank repossessions—were reported on 357,062 U.S. properties in 2023.
This is up 10% from 2022 and up 136% from 2021, but down 28% from 2019, before the pandemic shook up the market. Foreclosure filings in 2023 were also down 88% from a peak of nearly 2.9 million in 2010.
Those 357,062 properties with foreclosure filings in 2023 represented 0.26% of all U.S. housing units, up slightly from 0.23% in 2022, but down from 0.36% in 2019 and down from a peak of 2.23% in 2010.
"Reflecting on 2023, we see the recent rise in foreclosure activity as a market correction rather than a cause for alarm. It signals a return to more traditional patterns after years of volatility," said Rob Barber, CEO at ATTOM. "Our data suggests that while foreclosure activity may fluctuate, it's unlikely to approach the highs seen in the last decade. Instead, we foresee a market that is more reflective of broader economic trends, with foreclosure filings becoming a more predictable aspect of the housing landscape. This shift offers a silver lining—an opportunity for investors, homeowners, and industry professionals to plan and strategize with greater confidence and insight."
The report also includes new data for December 2023, showing there were 30,314 U.S. properties with foreclosure filings, down 6% from the previous month and down 2% from a year ago.
Q4 2023 Foreclosure Activity: High-Level Takeaways
- There were a total of 92,896 U.S. properties with foreclosure filings in Q4 2023, down 8% from the previous quarter but up 2% from a year ago.
- Nationwide, in Q4 2023, one in every 1,503 properties had a foreclosure filing.
- States with the highest foreclosure rates in Q4 2023 were Delaware (one in every 903 housing units with a foreclosure filing); New Jersey (one in every 914 housing units); Ohio (one in every 922 housing units); Maryland (one in every 943 housing units); and South Carolina (one in every 995 housing units).
December 2023 Foreclosure Activity: High-Level Takeaways
- Nationwide, in December 2023, one in every 4,606 properties had a foreclosure filing.
- States with the highest foreclosure rates in December 2023 were Maryland (one in every 2,570 housing units with a foreclosure filing); Connecticut (one in every 2,660 housing units); New Jersey (one in every 2,775 housing units); Ohio (one in every 2,819 housing units); and Delaware (one in every 2,967 housing units).
- 20,490 U.S. properties started the foreclosure process in December 2023, down 8% from the previous month and down 3% from a year ago.
- Lenders completed the foreclosure process on 3,503 U.S. properties in December 2023, up 37% from the previous month but down 4% from a year ago.
Foreclosure Starts on the Rise Nationwide
Lenders started the foreclosure process on 270,222 U.S. properties in 2023, up 9% from 2022 and 193% from 2021, but down 20% from 2019 and down 87% from a peak of 2,139,005 in 2009.
States that saw the greatest number of foreclosure starts in 2023 included:
- California (29,180 foreclosure starts)
- Texas (28,533 foreclosure starts)
- Florida (27,427)
- New York
- (17,330)
- Illinois (13,764)
Some six states saw an increase in foreclosure starts compared to 2019. They included Indiana (+73%); Idaho (up 70%); Michigan (+15%); Nevada (+10%); and Minnesota (+9%).
Those metropolitan statistical areas with a population greater than 1 million that saw the greatest number of foreclosure starts in 2023 included:
- New York, New York (18,464 foreclosure starts)
- Chicago (11,620)
- Houston (9,476)
- Los Angeles (8,835)
- Philadelphia (8,224)
Bank Repossessions Experience Slight Decline from 2022
Lenders repossessed 42,090 properties through foreclosures (REO) in 2023, down 2% from 2022 but down 71% from 2019 (143,955) and down 96% from a peak of 1,050,500 in 2010.
States that saw the greatest number of REOs in 2023 included: Illinois (3,814 REOs); Michigan (3,634 REOs); Pennsylvania (2,853 REOs); California (2,633 REOs); and New York (2,538 REOs).
Those metropolitan statistical areas with a population greater than 1 million that saw the greatest number of REOs in 2023 included Chicago, Illinois (2,505 REOs); New York, New York (2,045 REOs); Detroit, Illinois (1,795 REOs); Philadelphia, Pennsylvania (1,130 REOs); and Baltimore, Maryland (872 REOs).
New Jersey, Illinois, and Delaware Post the Highest State Foreclosure Rates in 2023
States with the highest foreclosure rates in 2023 were:
- New Jersey (0.46% of housing units with a foreclosure filing)
- Illinois (0.42%)
- Delaware (0.41%)
- Maryland (0.40%)
- Ohio (0.38%)
Rounding out the top 10 states with the highest foreclosure rates in 2023 were South Carolina (0.38%), Nevada (0.37%), Florida (0.37%), Connecticut (0.35%), and Indiana (0.32%).
Cleveland, Atlantic City, and Lakeland Post the Highest Metro Foreclosure Rates in 2023
Among 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in 2023 were:
- Cleveland (0.62% of housing units with a foreclosure filing)
- Atlantic City, New Jersey (0.62%)
- Lakeland, Florida (0.56%)
- Columbia, South Carolina (0.55%)
- Fayetteville, North Carolina (0.51%)
Metro areas with a population greater than 1 million, including Cleveland, Ohio, that had the highest foreclosure rates in 2023 were: Philadelphia, Pennsylvania (0.48%); Jacksonville, Florida (0.47%); Las Vegas, Nevada (0.46%); and Chicago, Illinois (0.45%).
The Average Time to Foreclose Decreases Quarterly, Annually
Overall, U.S. properties foreclosed in Q4 of 2023 had been in the foreclosure process an average of 720 days, a 7% decrease from the previous quarter and a 16% decrease from a year ago.
States with the longest average time to foreclose in Q4 2023 were Louisiana (2,641 days); Hawaii (2,031 days); New York (2,006 days); Nevada (1,816 days); and Kentucky (1,643 days).
To read the full report, including more data, charts, and methodology, click here [2].