Both foreclosure starts and completions are down
Foreclosure activity has remained relatively stable in recent months, with both foreclosure starts and completed foreclosures seeing declines in August 2024, according to a new report from ATTOM.
The report showed that 30,227 properties had foreclosure filings, including default notices, scheduled auctions, or bank repossessions. This marked a 5.3% drop from July and an 11% decline compared to the same period last year.
Despite the lower foreclosure figures, ATTOM chief executive officer Rob Barber said the current economic environment could pose risks to the housing market.
“While overall activity is significantly lower than the peaks seen during the 2008 financial crisis, when filings exceeded 300,000 per month, the current economic environment, coupled with rising interest rates and affordability challenges, suggests a continued focus on potential housing market instability,” Barber said in the report.
Across the country, one in every 4,662 housing units in August had a foreclosure filing.
Nevada topped the list with the highest foreclosure rate, with one in every 2,473 housing units affected. Florida (one in 2,605), Illinois (one in 2,837), South Carolina (one in 2,877), and New Jersey (one in 3,227) followed.
Among metropolitan areas with at least 200,000 residents, Lakeland, Florida, saw the highest foreclosure rate, with one in every 1,245 housing units facing foreclosure. Other areas with elevated rates included Lakeland, Fla. (one in every 1,245 units), Chico, Calif. (one in every 1,526 units), and Columbia, SC (one in every 1,796 units) saw the highest foreclosure rates.
Lenders initiated the foreclosure process on 20,747 properties in August 2024, a 5.1% drop from the previous month and a 9.4% decline year-over-year.
Florida led the nation in foreclosure starts, with 2,668 properties entering foreclosure, followed by California (2,443), Texas (1,857), New York (1,328), and Illinois (1,208).
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Completed foreclosures, or REOs (real estate-owned properties), also declined in August, with lenders repossessing 2,889 properties – a 12% drop from the previous month and down nearly 14% from August 2023. Pennsylvania, California, Illinois, Michigan, and Florida had the highest number of completed foreclosures. Pennsylvania led in completed foreclosures with 266 repossessed properties, followed by California (229), Illinois (224), Michigan (206), and Florida (202).
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