Foreclosure filings up 13% in first half of 2023

Foreclosure filings during the first six months of 2023 increased 13% year-over-year and were 185% higher than two years ago, but are still lower than historic norms, Attom Data Solutions said.

Through the end of June 185,580 properties nationwide had some sort of activity — default notices, scheduled auctions or bank repossessions — up from 164,581 for the same period in 2022.

"Similar to the first half of 2022, foreclosure activity across the United States maintained its upward trajectory, gradually approaching pre-pandemic levels in the first half of 2023," Attom CEO Rob Barber said in a press release. "Although overall foreclosure activity remains below historical norms, the notable surge in foreclosure starts indicates that we may continue to see a rise in foreclosure activity in the coming years."

Foreclosure activity in 2021 was distorted by pandemic-related moratoriums. In 2020, the last year of typical activity, 165,530 properties had a filing through June and that at the time was a 15-year low, Attom said back then.

Expressed as a ratio, one in every 752 housing units, or 0.13%, had some sort of filing at the end of June.

The states with the highest share of foreclosure activity were Illinois, 0.25%; New Jersey, 0.24%; Maryland, 0.23%; Delaware, 0.23%; and Ohio, 0.20%.

Foreclosure starts nationwide grew 15% over the first half of 2022 to 135,065 properties. California led the way with 14,217 starts, followed by Florida, 13,837; Texas, 13,319; and New York, 8.772.

Fannie Mae and Freddie Mac loans entering foreclosure increased 6% in the first quarter compared with the prior three months, a Federal Housing Finance Agency report released in June found.

But the time frame for the foreclosure process to play out rose in the second quarter to 1,212 days, the most since the first quarter of 2018 and up 28% from both the first quarter and the second quarter of 2022, Attom noted.

For June alone, 24,019 properties started the foreclosure process, up 3% over May and 8% from June 2022.

Meanwhile the process was completed on 3,215 properties, 20% less than one month prior but only 1% lower from the previous year.