Foreclosures rise toward pre-pandemic levels: report

Foreclosure activity picked up across the country in the first six months of the year and is moving closer to pre-pandemic levels, according to a report released Thursday. 

There were 185,580 U.S. properties with foreclosure filings, which include default notices, scheduled auctions or bank repossessions, in the first half of the year, the report from nationwide property data provider ATTOM showed.

This is up 13 percent from the same period last year and up 185 percent from two years ago, when there were slightly more than 64,000 in the first six months of the year. A federal ban on foreclosures ended in July 2021, by which point most state bans had also elapsed.

“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 statement. 

“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,” he added. 

Nationwide, 0.13 percent of properties had foreclosure filings in the first six months of the year, with the highest numbers recorded in Illinois, New Jersey, and Maryland. The largest increases were from Maryland, Oregon, Alaska, West Virginia and Arkansas. 

Even so, filings are still down from historic norms, according to the data. 

ATTOM’s report also revealed foreclosure filings are down significantly from pre-recession levels from 2006-08; there were 278,912 per quarter from the first quarter of 2006 to the third quarter of 2007. 

And through the first half of 2023, foreclosures are far below what they were during the global recession. In the first six months of 2010, there were 1.64 million foreclosure filings. 

Meanwhile, monthly data shows foreclosure filings continue to move upward. In June, 1 in every 3,972 properties had a foreclosure filing. And 24,019 U.S. properties started the foreclosure process, up 3 percent from May.