Foreclosure Rates Highest in Delaware, Illinois, and Florida; Only 5 Greater Populated Metros Saw an Annual Increase in Foreclosure Filings; Q2 Foreclosure Activity Below Pre-Recession Levels in 92 Percent of Metros

IRVINE, Calif. – July 15, 2021 —ATTOM, licensor of the nation’s most comprehensive foreclosure data and parent company to RealtyTrac (www.realtytrac.com), the largest online marketplace for foreclosure and distressed properties, today released its Midyear 2021 U.S. Foreclosure Market Report, which shows there were a total of 65,082 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — in the first six months of 2021. That figure is down 61 percent from the same time period a year ago and down 78 percent from the same time period two years ago.

Historical First Half US Foreclosure Activity Chart

Bucking the national trend with increasing foreclosure activity compared to a year ago, were only 5 of the 220 metro areas analyzed in the report. Those metros included Tyler, Texas (up 88 percent); Brownsville, Texas (up 21 percent); Springfield, Illinois (up 19 percent); Sioux Falls, South Dakota (up 9 percent); and Lake Charles, Louisiana (up 5 percent).

“The government’s foreclosure moratorium and mortgage forbearance program have created an unprecedented situation – historically high numbers of seriously delinquent loans and historically low levels of foreclosure activity,” said Rick Sharga, executive Vice President of RealtyTrac, an ATTOM company. “With the moratorium scheduled to end on July 31, and half of the remaining borrowers in forbearance scheduled to exit that program over the next six months, we should start to get a more accurate read on the level of financial distress the pandemic has caused for homeowners across the country.”

Delaware, Illinois, Florida post highest state foreclosure rates

Nationwide 0.05 percent of all housing units (one in every 2,112) had a foreclosure filing in the first half of 2021.

States with the highest foreclosure rates in the first half of 2021 were Delaware (0.10 percent of housing units with a foreclosure filing); Illinois (0.09 percent); Florida (0.08 percent); Ohio (0.08 percent); and Indiana (0.08 percent).

Other states with first-half foreclosure rates among the 10 highest nationwide, were New Jersey (0.07 percent); Nevada (0.07 percent); South Carolina (0.07 percent); Louisiana (0.06 percent); and New Mexico (0.06 percent).

Highest metro foreclosure rates in Lake Havasu, Cleveland, Macon

Among 220 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in the first half of 2021 were Lake Havasu, Arizona (0.25 percent of housing units with foreclosure filings); Cleveland, Ohio (0.15 percent); Macon, Georgia (0.13 percent); Peoria, Illinois (0.12 percent); and Florence, South Carolina (0.12 percent).

Other metro areas with foreclosure rates ranking among the top 10 highest in the first half of 2021 were McAllen, Texas (0.12 percent of housing units with a foreclosure filing); Atlantic City, New Jersey (0.11 percent); Davenport, Iowa (0.11 percent); Shreveport, Louisiana (0.11 percent); and South Bend, Indiana (0.11 percent).

Foreclosure starts down 63 percent from last year

A total of 36,742 U.S. properties started the foreclosure process in the first six months of 2021, down 63 percent from the first half of last year but up 14 percent from the last half of 2020.

States that saw the greatest decline in foreclosure starts from the same time last year included, Maryland (down 95 percent); Oklahoma (down 87 percent); Pennsylvania (down 81 percent); Idaho (down 78 percent); and New Mexico (down 76 percent).

Bank repossessions drop to lowest level

Lenders foreclosed (REO) on a total of 9,730 U.S. properties in the first six months of 2021, down 74 percent from a year ago to the lowest six-month total since we began tracking in 2005.

“Fewer bank repossessions may be a trend we continue to see even after the government’s programs protecting borrowers from foreclosure expire,” Sharga noted. “Rising home prices have provided most homeowners with enough equity to sell their homes at a profit, rather than lose them to a foreclosure or repossession.”

States that posted more than 100 REOs in the first half of 2021 and had the greatest year-over-year decreases in REOs, included Michigan (down 90 percent); New York (down 86 percent); New Jersey (down 84 percent); Connecticut (down 83 percent); and Pennsylvania (down 81 percent). The only state that posted a year-over-year increase in REOs in the first half of 2021 was South Dakota, with a total of 17 REOs, up 21 percent.

Q2 2021 foreclosure activity below pre-recession averages in 92 percent of markets

There were a total of 33,964 U.S. properties with foreclosure filings in Q2 2021, up less than 1 percent from the previous quarter and up 11 percent from a year ago.

The national foreclosure activity total in Q2 2021 was 88 percent below the pre-recession average of 278,912 per quarter from Q1 2006 to Q3 2007, making Q2 2021 the 19th consecutive quarter with foreclosure activity below the pre-recession average.

Second quarter foreclosure activity was below pre-recession averages in 202 out 220 (92 percent) 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.

Metro areas with second quarter foreclosure activity above pre-recession averages included Portland, McAllen, Huntsville, Salisbury, and Gulfport.

Average foreclosure timeline increases from last year

Properties foreclosed in the second quarter of 2021 took an average of 922 days from the first public foreclosure notice to complete the foreclosure process, down slightly from 930 days in the previous quarter but up from 685 days in the second quarter of 2020.

Historical Avg Days to Complete Foreclosure Chart

States with the longest average foreclosure timelines for foreclosures completed in Q2 2021 were Hawaii (3,068 days), New York (1,822 days), Indiana (1,617 days), Wisconsin (1,587 days), and New Jersey (1,471 days).

States with the shortest average foreclosure timelines for foreclosures completed in Q2 2021 were Wyoming (173 days), Arkansas (253 days), Tennessee (270 days), Virginia (280 days), and Mississippi (292 days).

June 2021 Foreclosure Activity High-Level Takeaways

  • Nationwide in June 2021, one in every 10,547 properties had a foreclosure filing
  • States with the highest foreclosure rates in June 2021 were Nevada (one in every 3,959 housing units with a foreclosure filing); Delaware (one in every 5,700 housing units); Illinois (one in every 5,923 housing units); South Carolina (one in every 5,971 housing units); and New Jersey (one in every 6,367 housing units).
  • 6,826 U.S. properties started the foreclosure process in June 2021, up 16 percent from the previous month and up 40 percent from a year ago.
  • Lenders completed the foreclosure process on 2,311 U.S. properties in June 2021, up 76 percent from the previous month but down 8 percent from a year ago.

Report Methodology

The ATTOM 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 month and quarter. Some foreclosure filings entered into the database during the quarter may have been recorded in the previous quarter. Data is collected from more than 3,000 counties nationwide, and those counties account for more than 99 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, midyear and quarterly reports, if more than one type of foreclosure document is received for a property during the timeframe, only the most recent filing is counted in the report. The annual, midyear, 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.

Interested in finding out more about our pre-foreclosure and foreclosure data?

Contact ATTOM for Foreclosure Data Licensing Details.

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U.S. Foreclosure Market Data by State – Jan to Jun 2021

Rate Rank State Name Total Properties with Filings  

%Housing Units

 

1/every X HU

%Δ from Jan-Jun 20 %Δ from Jan-Jun 19
  U.S. 65,082 0.05 2,112 -60.68 -78.05
17 Alabama 1,143 0.05 1,973 -52.26 -75.18
16 Alaska 161 0.05 1,954 -42.70 -63.98
26 Arizona 1,208 0.04 2,486 -64.40 -75.93
37 Arkansas 350 0.03 3,915 -53.08 -79.82
13 California 7,575 0.05 1,871 -57.71 -67.51
46 Colorado 334 0.01 7,145 -76.64 -86.01
11 Connecticut 836 0.06 1,814 -69.54 -82.65
1 Delaware 449 0.10 965 -62.24 -77.00
  District of Columbia 36 0.01 8,755 -82.18 -92.71
3 Florida 7,851 0.08 1,203 -49.98 -78.50
12 Georgia 2,310 0.05 1,854 -61.07 -73.53
27 Hawaii 202 0.04 2,687 -54.40 -75.78
43 Idaho 113 0.02 6,403 -71.46 -73.29
2 Illinois 4,944 0.09 1,084 -60.70 -75.80
5 Indiana 2,170 0.08 1,330 -45.05 -62.92
15 Iowa 734 0.05 1,903 -53.69 -68.23
45 Kansas 188 0.01 6,773 -65.76 -85.47
28 Kentucky 735 0.04 2,699 -46.35 -72.82
9 Louisiana 1,222 0.06 1,686 -37.08 -68.70
14 Maine 396 0.05 1,876 -49.03 -67.03
19 Maryland 1,147 0.05 2,135 -78.03 -89.01
29 Massachusetts 1,072 0.04 2,703 -57.78 -77.63
40 Michigan 991 0.02 4,638 -76.97 -83.63
39 Minnesota 577 0.02 4,226 -59.28 -75.55
31 Mississippi 447 0.03 2,959 -46.91 -74.99
22 Missouri 1,177 0.04 2,371 -47.43 -73.11
47 Montana 69 0.01 7,394 -38.39 -76.85
38 Nebraska 213 0.03 3,932 -70.25 -74.61
7 Nevada 917 0.07 1,364 -40.72 -70.95
34 New Hampshire 181 0.03 3,507 -56.07 -76.52
6 New Jersey 2,660 0.07 1,360 -70.12 -86.41
10 New Mexico 519 0.06 1,807 -59.58 -78.25
35 New York 2,343 0.03 3,552 -73.53 -87.73
21 North Carolina 2,064 0.04 2,242 -67.86 -77.76
44 North Dakota 58 0.02 6,432 -21.62 -48.67
4 Ohio 4,119 0.08 1,263 -49.02 -73.51
18 Oklahoma 813 0.05 2,130 -61.38 -79.64
42 Oregon 311 0.02 5,688 -64.46 -86.94
24 Pennsylvania 2,364 0.04 2,408 -67.82 -81.97
32 Rhode Island 140 0.03 3,345 -66.67 -81.72
8 South Carolina 1,648 0.07 1,388 -58.39 -77.38
48 South Dakota 42 0.01 9,252 50.00 -60.38
36 Tennessee 781 0.03 3,794 -67.44 -84.06
30 Texas 4,012 0.04 2,726 -66.87 -78.10
25 Utah 447 0.04 2,432 -60.79 -73.60
50 Vermont 20 0.01 16,750 -83.19 -91.90
33 Virginia 1,039 0.03 3,382 -61.19 -82.35
41 Washington 608 0.02 5,109 -64.00 -81.15
49 West Virginia 84 0.01 10,621 -65.85 -84.33
23 Wisconsin 1,134 0.04 2,376 -35.68 -70.95
20 Wyoming 128 0.05 2,163 -27.68 -53.11

About ATTOM

ATTOM provides foreclosure data licenses that can power various enterprise industries including real estate, insurance, marketing, government, mortgage and more. ATTOM multi-sources from 3,000 counties property tax, deed, mortgage, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation’s population.

About RealtyTrac (Powered by ATTOM’s Property Data)

RealtyTrac.com is the largest online marketplace for foreclosure and distressed properties, helping individual investors and real estate agents looking to gain a competitive edge in the distressed market. Realtytrac.com enables real estate professionals the ability to find, analyze and invest in residential properties.

Media Contact:

Christine Stricker

949.748.8428

[email protected]

Data and Report Licensing:

949.502.8313

[email protected]

Please contact us if you have questions about the underlying data referenced in this article, or would like to have access to that data in the form of custom reports, API, Bulk File or ATTOM Cloud.

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