U.S. Foreclosure Filings Exceed 185K in First Half of 2023

According to ATTOM’s Midyear 2023 U.S. Foreclosure Market Report, there were a total of 185,580 U.S. properties with foreclosure filings—default notices, scheduled auctions or bank repossessions—in the first six months of 2023, up 13% year-over-year and up 185% from the same time period two years ago during the heart of the pandemic.

"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," said Rob Barber, CEO for ATTOM. "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."

States that saw the greatest increase in foreclosure activity compared to a year ago in the first half of 2023 included:

• Maryland (up 100% year-over-year)
• Oregon (up 99% year-over-year)
• Alaska (up 95% year-over-year)
• West Virginia (up 83% year-over-year)
• Arkansas (up 72% year-over-year)

Nationwide, 0.13%of all housing units (one in every 752) had a foreclosure filing in the first half of 2023, and the top 10 states reporting the highest foreclosure rates in the first half of 2023 were:

• Illinois (0.25% of housing units with a foreclosure filing)
• New Jersey (0.24% of housing units with a foreclosure filing)
• Maryland (0.23% of housing units with a foreclosure filing)
• Delaware (0.23% of housing units with a foreclosure filing)
• Ohio (0.20% of housing units with a foreclosure filing)
• South Carolina (0.19% of housing units with a foreclosure filing)
• Florida (0.19% of housing units with a foreclosure filing)
• Nevada (0.19% of housing units with a foreclosure filing)
• Indiana (0.18% of housing units with a foreclosure filing)
• Connecticut (0.16% of housing units with a foreclosure filing)

Among the 223 metropolitan statistical areas with a population of at least 200,000 analyzed by ATTOM, those reporting the highest foreclosure rates in the first half of 2023 included:

• Cleveland, Ohio (0.33% of housing units with a foreclosure filing)
• Atlantic City, New Jersey (0.33% of housing units with a foreclosure filing)
• Fayetteville, North Carolina (0.30% of housing units with a foreclosure filing)
• Columbia, South Carolina (0.29% of housing units with a foreclosure filing)
• Lakeland, Florida (0.29% of housing units with a foreclosure filing)
• Chicago (0.28% of housing units with a foreclosure filing)
• Jacksonville, Florida (0.26% of housing units with a foreclosure filing)
• Florence, South Carolina (0.26% of housing units with a foreclosure filing)
• Philadelphia (0.25% of housing units with a foreclosure filing)
• Elkhart, Indiana (0.25% of housing units with a foreclosure filing)

A total of 135,065 properties across the nation started the foreclosure process in the first six months of 2023, a total that was up 15% from the first half of 2022, and up 36% from the first half of 2020. States reporting the greatest number of foreclosures starts in the first half of 2023 included:

• California (14,217 foreclosure starts)
• Florida (13,837 foreclosure starts)
• Texas (13,419 foreclosure starts)
• New York (8,772 foreclosure starts)
• Illinois (7,995 foreclosure starts)

In terms of real estate-owned (REO) properties, ATTOM reported that lenders foreclosed on a total of 22,672 U.S. properties in the first six months of 2023, up 9% from the first half of 2022, and up 133% from the first half of 2021, but down 40% from the first half of 2020. States reporting the greatest number of REOs in the first half of 2023 included:

• Michigan (2,423 REOs)
• Illinois (2,059 REOs)
• Pennsylvania (1,420 REOs)
• California (1,362 REOs)
• New York (1,350 REOs)

ATTOM reported that Q2 foreclosure activity was below pre-recession averages in 173 out 223 (78%) of the metropolitan statistical areas with a population of at least 200,000 and sufficient historical foreclosure data, including New York, Los Angeles, Chicago, Dallas, Houston, Miami, Atlanta, San Francisco, Riverside-San Bernardino, Phoenix, and Detroit.

Properties foreclosed in Q2 2023 had been in the foreclosure process an average of 1,212 days, the highest number of average days to foreclose since Q1 2018—a figure that was up 28% from the previous quarter and up 28% from Q2 2022.

States with the longest average foreclosure timelines for homes foreclosed in Q2 2023 were:

• Michigan (2,601 days)
• Louisiana (2,252 days)
• New York (1,966 days)
• Hawaii (1,934 days)
• Kentucky (1,921 days)

On the other end of the spectrum, states reporting the shortest average foreclosure timelines for homes foreclosed in Q2 2023 were:

• Wyoming (104 days)
• Minnesota (145 days)
• Montana (160 days)
• Texas (162 days)
• Missouri (170 days)

In June 2023 alone, ATTOM reported the following key takeaways regarding its foreclosure findings:

• Nationwide in June 2023, one in every 3,972 properties had a foreclosure filing.
• States with the highest foreclosure rates in June 2023 were Maryland (one in every 1,733 housing units with a foreclosure filing); Delaware (one in every 2,171 housing units); New Jersey (one in every 2,189 housing units); Connecticut (one in every 2,272 housing units); and Illinois (one in every 2,348 housing units).
• In June, 24,019 U.S. properties started the foreclosure process, up 3% from the previous month, and up 8% from June 2022.
• Lenders completed the foreclosure process on 3,215 U.S. properties in June 2023, down 20% from the previous month and down 1% from June 2022.

Click here for more information on ATTOM’s Midyear 2023 U.S. Foreclosure Market Report.