Not Like 2008? U.S. Foreclosure Filings Jump 7% Last Month

U.S. foreclosure filings jumped 7% from a month ago and 14% from a year ago, according to a report from real estate data analytics firm ATTOM.

A total of 35,196 properties nationwide filed foreclosures, which included default notices, scheduled auctions or bank repossessions, according to ATTOM’s May 2023 U.S. Foreclosure Market Report.

“The recent increase in foreclosure filings nationwide indicates a trend that has been observed throughout the year and what we have expected to occur,” ATTOM CEO Rob Barber said. “This upward trajectory suggests the possibility of continued heightened activity, and with foreclosure completions seeing the largest monthly increase this year, we will continue to monitor the potential impacts this may have on the housing market.”

Illinois, Maryland and New Jersey recorded the highest foreclosure rates. In Illinois, one in every 2,144 housing units had a foreclosure filing; in Maryland, it was one in every 2,203 units; and in New Jersey, it was one in every 2,257 units. Nationwide, one in every 3,967 housing units had a foreclosure filing.

The metropolitan areas with a population greater than 1 million with the worst foreclosure rates were Cleveland, Ohio; Jacksonville, Florida; Baltimore, Maryland; Chicago, Illinois; and Orlando, Florida.

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Lenders started the foreclosure process on 23,245 properties in May, up 4% from April and 5% from a year ago.

The greatest number of foreclosure starts were in Florida with 2,901; California with 2,451; and Texas with 2,286.

The metropolitan areas with a population greater than 1 million with the most foreclosure starts were New York City, Chicago, Houston, Los Angeles and Philadelphia.

Lenders repossessed 4,020 properties through completed foreclosures — real estate owned (REOs) — in May, up 38% from last month and 41% from last year.

The states with the most REOS were Illinois at 352; Ohio at 279; Michigan at 271; Texas at 240; and Pennsylvania at 229.

The metropolitan areas with a population greater than 1 million that had the most REOs were New York City, Chicago, Detroit, St. Louis and Washington, D.C.

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