Foreclosures have now risen more than 50% YOY as filings edge closer to pre-pandemic levels, according to ATTOM’s October 2022 U.S. Foreclosure Market Report.
A total of 32,376 properties had foreclosure filings in October, up 57% from a year ago.
But month-to-month, foreclosures only rose by 2%.
Foreclosures continue to climb steadily toward pre-pandemic levels after the foreclosure moratorium, pushing YOY data artificially to scary highs. Activity is still below what ATTOM considers normal levels.
“October foreclosure activity was about 59% of pre-pandemic numbers, and at its current pace, foreclosures probably won’t be back to historically normal levels until sometime around mid-2023,” said Rick Sharga, executive vice president of market intelligence at ATTOM.
Illinois, Delaware, and New Jersey were the states with the highest foreclosure rates.
California, Texas, and Florida saw the biggest share of foreclosure starts, in particular. Florida may see some increased activity as homeowners grapple with the aftermath of Hurricane Ian, which incurred insured losses of $7.1 billion.
Repossessions increased 18% in October but are still 31% below October 2019.
“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,” Sharga said.
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