Foreclosure Rates are Surging: These 10 U.S. Cities are Where They’re Up the Most
Industry Update
July 24, 2023
Source: Realtor.com
Foreclosures in America are on the rise for the second year in a row. This puts a firm bookend on an 11-year decline in the forced repossession or sale of a home when a homeowner can’t pay the mortgage.
But let’s take a deep breath: The current rise in foreclosure activity is not uniform across the country. Even more than 15 years ago, when the bottom fell out of the housing market, there are more distressed properties in some areas than others. That’s why the data team at Realtor.com® went out to find which places are experiencing high—and growing—percentages of foreclosure filings.
However, before anyone panics, there is no wave of foreclosures threatening to wash across the country, bringing down home values like the epic crash that occurred during the Great Recession. And the foreclosed properties that do make it onto the market will likely be snapped up quickly by buyers frustrated by high prices and the lack of homes for sale.
In June, roughly 2.5 out of every 10,000 homes had a distressed property or foreclosure filing, according to data provided by ATTOM, a real estate data clearinghouse. In the first six months of 2023, the total of homes receiving a foreclosure filing was just under 186,000. In the years around the housing recession of the late 2000s, about 15 times as many borrowers were going through foreclosure.
The current increase is likely due to the pause in foreclosure activity during the COVID-19 pandemic, says Geoff Walsh, a staff attorney at the National Consumer Law Center.
Today’s rise in foreclosure filings is now catching up with borrowers who might have otherwise already been foreclosed on months or years ago.
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