Average time to Foreclose Jumps to New Record High in Q4 2016
Biggest Backlogs of Legacy Foreclosures in New Jersey, New York, Florida
IRVINE, Calif. – Jan. 12, 2017 – ATTOM Data Solutions, curator of the nation’s largest fused property database, today released its Year-End 2016 U.S. Foreclosure Market Report, which shows foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 933,045 U.S. properties in 2016, down 14 percent from 2015 to the lowest level since 2006, when there were 717,522 U.S. properties with foreclosure filings.
The report also shows that 0.70 percent of all U.S. housing units had at least one foreclosure filing in 2016, the lowest annual foreclosure rate nationwide since 2006, when 0.58 percent of housing units had at least one foreclosure filing.
ATTOM’s year-end foreclosure report is a count of unique properties with a foreclosure filing during the year based on publicly recorded and published foreclosure filings collected in more than 2,500 counties nationwide, with address-level data on more than 23 million foreclosure filings historically also available for license or customized reporting. See full methodology below.
The report also includes new data for December, when there were 85,919 U.S. properties with foreclosure filings, down 1 percent from the previous month and down 17 percent from a year ago — the 15th consecutive month with a year-over-year decrease in foreclosure activity.
“The national foreclosure rate stayed within an historically normal range for the third consecutive year in 2016, even as banks continued to clear out legacy foreclosures from the last housing bubble, particularly in the final quarter of the year,” said Daren Blomquist, senior vice president at ATTOM Data Solutions, the new parent company of RealtyTrac. “Foreclosures completed in the fourth quarter had been in the foreclosure process 803 days on average, a substantial jump from the third quarter and indicating that banks pushed through significant numbers of legacy foreclosures during the quarter. Despite that push, we still show that more than half of all active foreclosures nationwide are on loans originated between 2004 and 2008, with a much higher share of legacy foreclosures in some markets.”
Biggest backlogs of legacy foreclosures in New Jersey, New York, Florida
Nationwide, 55 percent of all loans actively in foreclosure as of the end of 2016 were originated between 2004 and 2008. The District of Columbia had the highest share of legacy foreclosures with 76 percent, followed by Hawaii (66 percent), New Jersey (64 percent), Nevada (63 percent), Delaware (61 percent), and Massachusetts (61 percent).
In terms of total number of legacy foreclosures, New Jersey led the way with 32,279, followed by New York (31,838), Florida (29,411), California (17,208), and Illinois (12,244).
Among counties, those with the highest total number of legacy foreclosures were Nassau County (Long Island), New York (8,632 representing 74 percent of all loans actively in foreclosure); Cook County (Chicago), Illinois (7,357 representing 53 percent); Kings County (Brooklyn), New York (6,207 representing 68 percent); Miami-Dade County, Florida (5,262 representing 64 percent); and Los Angeles County, California (4,956 representing 64 percent).
Foreclosure activity increases in 12 states, 25 percent of metro areas
Counter to the national trend, 12 states and the District of Columbia posted an increase in overall foreclosure activity in 2016 compared to 2015, including Delaware (up 45 percent); Rhode Island (up 29 percent); Massachusetts (up 21 percent); Connecticut (up 21 percent); and Hawaii (up 20 percent).
Among 216 metropolitan statistical areas with a population of at least 200,000, 53 of them (25 percent) posted year-over-year increases in foreclosure activity in 2016, led by Provo-Orem, Utah (up 30 percent); Honolulu (up 29 percent); Lynchburg, Virginia (up 29 percent); Springfield, Massachusetts (up 29 percent); and Tucson, Arizona (up 27 percent).
Foreclosure starts at new record low nationwide, but increase in 15 states
A total of 478,857 U.S. properties started the foreclosure process in 2016, down 16 percent from 2015 and down 78 percent from the peak of 2,139,005 foreclosure starts in 2009 to the lowest level since ATTOM began tracking foreclosure starts in 2006.
Counter to the national trend, 15 states and the District of Columbia posted a year-over-year increase in foreclosure starts in 2016, including Delaware (up 37 percent); Connecticut (up 35 percent); Maine (up 30 percent); Rhode Island (up 26 percent); Arizona (up 15 percent); and Massachusetts (up 12 percent).
Bank repossessions drop to 10-year low, but increase in 21 states
A total of 379,437 U.S. properties were repossessed by lenders (REO) in 2016, down 16 percent from 2015 and down 64 percent from the peak of 1,050,500 REOs in 2010 to the lowest level since 2006.
Counter to the national trend, 21 states and the District of Columbia posted a year-over-year increase in REOs in 2016, including Massachusetts (up 61 percent); Alabama (up 32 percent); New York (up 21 percent); Virginia (up 9 percent); and New Jersey (up 4 percent).
New Jersey, Delaware, Maryland post top state foreclosure rates in 2016
States with the highest foreclosure rates in 2016 were New Jersey (1.86 percent of housing units with a foreclosure filing); Delaware (1.51 percent); Maryland (1.37 percent); Florida (1.18 percent); and Illinois (1.10 percent).
Other states posting foreclosure rates in the top 10 highest in 2016 were Nevada (1.09 percent); South Carolina (0.92 percent); Connecticut (0.91 percent); Ohio (0.89 percent); and New Mexico (0.78 percent).
Atlantic City, Trenton, Rockford post top metro foreclosure rates in 2016
Among 216 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rate in 2016 were Atlantic City, New Jersey (3.39 percent of housing units with a foreclosure filing); Trenton, New Jersey (2.16 percent); Rockford, Illinois (1.54 percent); Philadelphia (1.53 percent); and Lakeland-Winter Haven, Florida (1.46 percent).
Other metro areas with foreclosure rates ranking among the top 10 highest nationwide in 2016 were Baltimore, Maryland (1.45 percent of housing units with a foreclosure filing); Tampa-St. Petersburg, Florida (1.38 percent); Chicago (1.35 percent); Columbia, South Carolina (1.32 percent); and Miami (1.30 percent).
Average time to foreclose jumps to new record high
U.S. properties foreclosed in the fourth quarter of 2016 had been in the foreclosure process an average of 803 days, a 29 percent jump from the previous quarter and a 27 percent increase from a year ago to the longest since ATTOM began tracking average foreclosure timelines in Q1 2007.
There were eight states where the average time to foreclose in the fourth quarter was more than 1,000 days: Utah (1,403); New Jersey (1,383); New York (1,283); Hawaii (1,220); Florida (1,186); Indiana (1,033); Illinois (1,024); and Pennsylvania (1,010).
States with the shortest average time to foreclose for properties foreclosed in the fourth quarter of 2016 were Virginia (223 days); Michigan (355 days); Oregon (362 days); Alabama (363 days); and Colorado (381 days).
The ATTOM Data Solutions Year-End U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing entered into the ATTOM Data Warehouse during the year. Some foreclosure filings entered into the database during the year may have been recorded in the previous year. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90 percent of the U.S. population. ATTOM’s report incorporates documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). For the annual and quarterly reports, if more than one type of foreclosure document is received for a property during the year or quarter, only the most recent filing is counted in the report. The annual, quarterly and monthly reports all check if the same type of document was filed against a property previously. If so, and if that previous filing occurred within the estimated foreclosure timeframe for the state where the property is located, the report does not count the property in the current year, quarter or month.
Data Licensing and Custom Report Order
Investors, businesses and government institutions can contact ATTOM Data Solutions to purchase the full dataset behind the Year-End U.S. Foreclosure Market Report, including data at the state, metro, county and zip code level. The data is also available via bulk license or in customized reports. For more information contact our Data Solutions Department at 800.462.5193 or [email protected].
About ATTOM Data Solutions
ATTOM Data Solutions is the curator of the ATTOM Data Warehouse, a multi-sourced national property database that blends property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, health hazards, neighborhood characteristics and other property characteristic data for more than 150 million U.S. residential and commercial properties. The ATTOM Data Warehouse delivers actionable data to businesses, consumers, government agencies, universities, policymakers and the media in multiple ways, including bulk file licenses, APIs and customized reports.
ATTOM Data Solutions also powers consumer websites designed to promote real estate transparency: RealtyTrac.com is a property search and research portal for foreclosures and other off-market properties; Homefacts.com is a neighborhood research portal providing hyperlocal risks and amenities information; HomeDisclosure.com produces detailed property pre-diligence reports.
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