Q3 2021 U.S. Foreclosure Activity Begins To See Significant Increases As Foreclosure Moratorium Is Lifted

Average Time to Foreclose Nationwide Increases 11 Percent From a Year Ago; U.S. Foreclosure Starts Increase 67 Percent From a Year Ago

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ATTOM

Oct 14, 2021, 00:01 ET

IRVINE, Calif., Oct. 14, 2021 /PRNewswire/ -- 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, released its Q3 2021 U.S. Foreclosure Market Report, which shows there were a total of 45,517 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — up 34 percent from the previous quarter and 68 percent from a year ago.

The report also shows there were a total of 19,609 U.S. properties with foreclosure filings in September 2021, up 24 percent from the previous month and up 102 percent from September 2020.

"Despite the increased level of foreclosure activity in September, we're still far below historically normal numbers," said Rick Sharga, executive vice president at RealtyTrac, an ATTOM company. "September foreclosure actions were almost 70 percent lower than they were prior to the COVID-19 pandemic in September of 2019, and Q3 foreclosure activity was 60 percent lower than the same quarter that year. Even with similar increases in foreclosures over the next few months, we'll end the year significantly below what we'd see in a normal housing market."

Foreclosure starts jump up nationwide
Lenders started the foreclosure process on 25,209 U.S. properties in Q3 2021, up 32 percent from the previous quarter and up 67 percent from a year ago — the first double digit quarterly percent increase since 2014.

U.S. Foreclosure Starts

States that posted the greatest number of foreclosure starts in Q3 2021, included California (3,434 foreclosure starts); Texas (2,827 foreclosure starts); Florida (2,546 foreclosure starts); New York (1,363 foreclosure starts); and Illinois (1,362 foreclosure starts).

Among the 220 metropolitan statistical areas analyzed in the report those that posted the greatest number of foreclosure starts in Q3 2021, included New York, New York (1,456 foreclosure starts); Chicago, Illinois (1,122 foreclosure starts); Los Angeles, California (1,102 foreclosure starts); Miami, Florida (992 foreclosure starts); and Houston, Texas (866 foreclosure starts).

Counter to the national trend of quarterly increases, among those metropolitan areas with a population greater than one million that saw a decline in foreclosure starts in Q3 2021 were Charlotte, North Carolina (down 32 percent); Portland, Oregon (down 26 percent); Rochester, New York (down 17 percent); San Jose, California (down 13 percent); and Hartford, Connecticut (down 6 percent).

"So far the government and the mortgage industry have worked together to do an extraordinary job of preventing millions of unnecessary foreclosures using the foreclosure moratorium and mortgage forbearance program," Sharga added. "But there are hundreds of thousands of borrowers scheduled to exit forbearance in the next two months, and it's possible that we might see a higher percentage of those borrowers default on their loans."

Highest foreclosure rates in Nevada, Illinois and Delaware
Nationwide one in every 3,019 properties had a foreclosure filing in Q3 2021. States with the highest foreclosure rates in Q3 2021 were Nevada (one in every 1,463 housing units with a foreclosure filing); Illinois (one in every 1,465); Delaware (one in every 1,515); New Jersey (one in every 1,667); and Florida (one in every 1,743).

Among 220 metropolitan statistical areas analyzed in the report, those with the highest foreclosure rates in Q3 2021 were Atlantic City, New Jersey (one in every 709 housing units with a foreclosure filing); Peoria, Illinois (one in every 754); Bakersfield, CA (one in every 923); Cleveland, Ohio (one in every 936); and Las Vegas, Nevada (one in every 1,167).

Bank repossessions increase nationwide
Lenders repossessed 7,574 U.S. properties through foreclosure (REO) in Q3 2021, up 22 percent from the previous quarter and up 46 percent from a year ago the first quarterly increase since Q1 2016.

U.S. Completed Foreclosures (REOs)

States that posted the largest number of completed foreclosures in Q3 2021, included Illinois (965 REOs); Florida (564 REOs); Pennsylvania (480 REOs); Michigan (401 REOs); and New York (370 REOs).

Average time to foreclose increases 11 percent from last year
Properties foreclosed in Q3 2021 had been in the foreclosure process an average of 924 days, up slightly from 922 days in the previous quarter but up 11 percent from 830 days in Q3 2020.

Average Days to Complete Foreclosure

States with the longest average foreclosure timelines for homes foreclosed in Q3 2021 were Hawaii (2,070 days); Nevada (1,989 days); Kansas (1,901 days); New York (1,659 days); and Washington (1,611 days).

States with the shortest average foreclosure timelines for homes foreclosed in Q3 2021 were Montana (94 days); Wyoming (102 days); Mississippi (133 days); Missouri (213 days); and Virginia (272 days).

September 2021 Foreclosure Activity High-Level Takeaways

Nationwide in September 2021 one in every 7,008 properties had a foreclosure filing.
States with the highest foreclosure rates in September 2021 were Florida (one in every 3,276 housing units with a foreclosure filing); Illinois (one in every 3,508 housing units); Delaware (one in every 3,834 housing units); Nevada (one in every 4,009 housing units); and New Jersey (one in every 4,487 housing units).
10,289 U.S. properties started the foreclosure process in September 2021, up 23 percent from the previous month and up 106 percent from a year ago.
Lenders completed the foreclosure process on 2,682 U.S. properties in September 2021, up 8 percent from the previous month and up 33 percent from a year ago.

U.S. Foreclosure Market Data by State – Q3 2021

Rate Rank	State Name	Total Properties with Filings	1/every X HU (Foreclosure Rate)	%∆ Q2 2021	%∆ Q3 2020
	U.S.	45,517	3,019	34.02	68.48
14	Alabama	727	3,102	-7.87	64.00
23	Alaska	82	3,837	20.61	56.62
34	Arizona	556	5,402	36.21	92.68
39	Arkansas	237	5,782	31.39	62.96
9	California	6,111	2,320	112.35	143.92
42	Colorado	361	6,611	25.73	86.65
10	Connecticut	601	2,524	41.58	132.52
3	Delaware	286	1,515	52.94	188.89
	District of Columbia	26	12,122	38.19	106.91
5	Florida	5,421	1,743	-0.56	20.04
16	Georgia	1,252	3,421	45.16	136.84
24	Hawaii	135	4,020	68.97	58.06
43	Idaho	98	7,384	40.14	107.43
2	Illinois	3,659	1,465	34.36	151.31
7	Indiana	1,435	2,012	21.85	28.46
12	Iowa	474	2,947	306.02	98.24
22	Kansas	337	3,778	-7.56	-33.73
40	Kentucky	330	6,012	6.32	16.26
20	Louisiana	572	3,601	2.93	1.44
17	Maine	211	3,520	60.81	27.38
11	Maryland	870	2,814	16.90	700.00
28	Massachusetts	664	4,363	108.23	226.10
30	Michigan	1,037	4,432	65.13	142.59
41	Minnesota	393	6,204	19.12	0.00
35	Mississippi	243	5,444	26.79	48.60
25	Missouri	691	4,038	9.68	25.93
47	Montana	34	15,005	-12.71	10.75
44	Nebraska	103	8,131	13.25	1,055.41
1	Nevada	855	1,463	31.03	67.65
36	New Hampshire	114	5,568	36.67	99.36
4	New Jersey	2,169	1,667	31.20	1.32
13	New Mexico	307	3,055	40.86	72.51
26	New York	2,058	4,044	21.87	30.47
19	North Carolina	1,293	3,579	55.56	180.00
46	North Dakota	28	13,324	24.19	82.32
6	Ohio	2,598	2,002	22.43	16.29
21	Oklahoma	464	3,732	-44.39	75.38
48	Oregon	114	15,517	16.42	23.68
31	Pennsylvania	1,269	4,486	9.68	21.43
32	Rhode Island	102	4,592	17.25	12.02
8	South Carolina	1,081	2,115	-19.05	88.89
50	South Dakota	17	22,857	104.97	48.52
27	Tennessee	701	4,228	54.26	39.19
18	Texas	3,076	3,556	67.39	48.08
33	Utah	231	4,706	158.33	675.00
45	Vermont	31	10,806	45.07	17.49
38	Virginia	618	5,686	69.23	252.56
37	Washington	550	5,648	-24.53	60.00
49	West Virginia	40	22,305	55.91	91.30
15	Wisconsin	792	3,402	34.04	85.29
29	Wyoming	63	4,394	-7.87	64.00

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.

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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.

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