Foreclosures Up 3% In Q1 2024 - The Mortgage Note

Foreclosures increased nationwide in Q1 2024 as mounting affordability pressures push homeowners into situations where they are unable to pay their mortgages.

According to ATTOM’s latest Foreclosure Market Report, a total of 95,349 U.S. properties had foreclosure filings during the first quarter. This is up 3% from Q4 2023, but down under 1% YOY.

“Q1 2024’s foreclosure data reveals a market in transition, with slight increases in filings and starts, alongside a notable decrease in REO properties,” explained Rob Barber, CEO at ATTOM.

“While foreclosures remain relatively stable, we’re closely monitoring these trends. Homeowners continue to hold significant equity, contributing to a persistently hot housing market.”

REOs were up 7% from the previous quarter but plummeted by 20% YOY.

Foreclosure starts bumped up by 2% in Q1 and 4% YOY.

Delaware, New Jersey, and South Carolina had the highest foreclosure rates. Nevada and Florida also made the top five.

But New Hampshire and Rhode Island aren’t far behind – these states saw 100 or more foreclosure starts in Q1 and the greatest quarterly increases.

For metros of 200,000 or more, New York, Houston, Chicago, Los Angeles, and Miami saw the most new starts.

Americans are grappling with sticky inflation and ongoing housing affordability issues. Even as borrowing costs stabilize – mortgage rates have averaged in the mid- to high-6% range since the beginning of the year – other costs can throw homeowners for a loop.

Rising insurance premiums and property taxes add to the financial burden of owning a home. Kentucky homeowner Darren Gondry told the Wall Street Journal that his non-mortgage costs have risen 63% in just the last two years.

“I was so sticker-shocked,” he said. “I fear they’re here to stay.”

Non-mortgage costs like property taxes, maintenance, utilities, and insurance account for more than half of homeowners’ costs.