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Completed Foreclosures (REOs) Increase by 18 Percent, While Foreclosure Starts Remain Flat

IRVINE, Calif. — Nov. 9, 2022 — ATTOM, a leading curator of real estate data nationwide for land and property data,  today released its October 2022 U.S. Foreclosure Market Report, which shows there were a total of 32,376 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions – up 57 percent from a year ago, but only up 2 percent from the prior month.

Illinois, Delaware, and New Jersey had the highest foreclosure rates

Nationwide one in every 4,339 housing units had a foreclosure filing in October 2022. States with the highest foreclosure rates were Illinois (one in every 1,779 housing units with a foreclosure filing); Delaware (one in every 2,178 housing units); New Jersey (one in every 2,305 housing units); South Carolina (one in every 2,711 housing units); and Nevada (one in every 2,755 housing units).

“Even though foreclosure activity continues its slow, steady increase since the end of the government’s moratorium, we’re still far below normal levels,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “October foreclosure activity was about 59 percent of pre-pandemic numbers, and at its current pace foreclosures probably won’t be back to historically normal levels until sometime around mid-2023.”

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Among the 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in October 2022 were Fayetteville, NC (one in every 1,135 housing units with a foreclosure filing); St. Louis, MO (one in every 1,177 housing units); Jacksonville, NC (one in every 1,203 housing units); Cleveland, OH (one in every 1,624 housing units); and Spartanburg, SC (one in every 1,729 housing units).

Those metropolitan areas with a population greater than 1 million, with the worst foreclosure rates in October 2022, including St. Louis, MO and Cleveland, OH were: Las Vegas, NV (one in every 2,062 housing units); Riverside, CA (one in every 2,127 housing units); and Chicago, IL (one in every 2,154 housing units).

Foreclosure completion numbers increase 18 percent from last month

Lenders repossessed 4,156 U.S. properties through completed foreclosures (REOs) in October 2022, up 18 percent from last month and up 37 percent from last year.

“Repossessions in October were just under 31 percent of where they were in October of 2019,” Sharga added. “This suggests that borrowers in foreclosure have been able to sell their homes prior to the foreclosure auction, and that a higher percentage of properties at the auctions are being sold to third-party buyers. A new flood of REO homes seems increasingly unlikely to happen anytime soon.”

States that had the greatest number of REOs in October 2022, included: Illinois (1,100 REOs); New York (273 REOs); Pennsylvania (251 REOs); Michigan (239 REOs); and California (194 REOs).

Those major metropolitan statistical areas (MSAs) with a population greater than 1 million that saw the greatest number of REOs in October 2022 included: St. Louis, MO (841 REOs); Chicago, IL (220 REOs); New York, NY (147 REOs); Philadelphia, PA (124 REOs); and Detroit, MI (98 REOs).

California, Texas, and Florida had the greatest number of foreclosure starts

Lenders started the foreclosure process on 21,829 U.S. properties in October 2022, down less than 1 percent from last month but up 103 percent from a year ago.

States that had the greatest number of foreclosure starts in October 2022 included: California (2,594 foreclosure starts); Texas (1,901 foreclosure starts); Florida (1,528 foreclosure starts); New York (1,362 foreclosure starts); and Illinois (1,300 foreclosure starts).

Those major metropolitan areas with a population greater than 1 million that had the greatest number of foreclosure starts in October 2022 included: New York, NY (1,655 foreclosure starts); Chicago, IL (1,107 foreclosure starts); Los Angeles, CA (816 foreclosure starts); Philadelphia, PA (788 foreclosure starts); and Miami, FL (583 foreclosure starts).

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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.

About ATTOM

ATTOM provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, 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. A rigorous data management process involving more than 20 steps validates, standardizes, and enhances the real estate data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 30TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, property data APIs, real estate market trends, property reports and more. Also, introducing our newest innovative solution, that offers immediate access and streamlines data management – ATTOM Cloud.

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