Choose which platform to sign into.

by ATTOM Staff

Increasing Trends in Foreclosure Activity and Market Analysis

ATTOM’s Midyear 2023 U.S. Foreclosure Market Report reveals trends in foreclosure activity in the United States for the first six months of 2023. There was a total of 185,580 properties with foreclosure filings, including default notices, scheduled auctions, and bank repossessions. This marks a 13 percent increase compared to the same period last year and a significant 185 percent increase compared to two years ago.

First Half Foreclosures Chart

Foreclosure activity in the U.S. has been on an upward trajectory, approaching pre-pandemic levels. While still below historical norms, a notable surge in foreclosure starts (properties started the foreclosure process) suggests the possibility of continued increased activity in the coming years. States experiencing the most substantial increases in foreclosure activity compared to the previous year are Maryland (up 100 percent), Oregon (up 99 percent), Alaska (up 95 percent), West Virginia (up 83 percent), and Arkansas (up 72 percent).

Illinois, New Jersey, and Maryland reported the highest state foreclosure rates, with 0.25 percent, 0.24 percent, and 0.23 percent of housing unitsrespectively having foreclosure filings. Nationwide, 0.13 percent of all housing units (one in every 752) faced foreclosure filings in the first half of 2023.

Among metropolitan areas with at least 200,000 people, those with the highest foreclosure rates were Cleveland, Ohio; Atlantic City, New Jersey; Fayetteville, North Carolina; Columbia, South Carolina; and Lakeland, Florida.

Foreclosure starts in the first half of 2023 increased by 15 percent compared to the same period in the previous year. The states with the most foreclosure starts included California, Florida, Texas, New York, and Illinois.

Bank repossessions (REOs) increased by 9 percent in the first half of 2023 compared to the first half of 2022, with Michigan, Illinois, Pennsylvania, California, and New York having the highest number of REOs.

In the second quarter of 2023, there were 97,608 properties with foreclosure filings, a 2 percent increase from the previous quarter and an 8 percent increase from a year ago. However, this activity was 65 percent below the pre-recession average from 2006 to 2007 in 78 percent of major metropolitan areas.

The average time to complete a foreclosure reached an all-time high, with properties foreclosed in Q2 2023 taking an average of 1,212 days. This number increased by 28 percent compared to the previous quarter and the same quarter in 2022. States with the longest average foreclosure timelines were Michigan, Louisiana, New York, Hawaii, and Kentucky. In contrast, states with the shortest average timelines included Wyoming, Minnesota, Montana, Texas, and Missouri.

Average Days To Complete Foreclosure

To learn more and access more detailed data or get the data behind the stories, contact one of ATTOM’s data experts.

See How ATTOM Can Make a Difference for Your Business!