Top 10 Zombified ZIPS in Q2 2024

Industry Update
May 31, 2024

Source: ATTOM

According to ATTOM’s newly released Q2 2024 Vacant Property and Zombie Foreclosure Report, 1.3 million (1,289,387) residential properties in the United States are vacant. This figure represents approximately 1.3 percent, or one in 79 homes, across the nation, consistent with the rate observed in the first quarter of this year.

ATTOM’s latest vacant properties analysis also reveals that 237,208 residential properties in the U.S. are in the process of foreclosure in the second quarter of this year, marking a 2.3 percent decrease from the first quarter of 2024 and a 23.9 percent decline from the second quarter of 2023.

The report notes that among those pre-foreclosure properties, approximately 6,945 are vacant zombie foreclosures (pre-foreclosure properties abandoned by their owners) in the second quarter of 2024. This figure represents a 5.4 percent decrease from the previous quarter and a 20.6 percent decline from a year ago.

Also according to ATTOM’s Q2 2024 vacant property and zombie foreclosure report, the number of zombie properties has decreased in 30 states from the previous quarter and in 38 states compared to last year. The biggest decreases from Q1 to Q2 2024 in states with at least 50 zombie properties, are in: Ohio (zombie properties down 22 percent, from 597 to 466), Maryland (down 17 percent, from 104 to 86), South Carolina (down 14 percent, from 74 to 64), California (down 13 percent, from 310 to 269), and North Carolina (down 12 percent, from 67 to 59).

On a more granular level, the report indicates that the highest zombie foreclosure rates in U.S. counties with at least 500 properties in the foreclosure process during the second quarter of 2024 are found in Broome County (Binghamton), NY (15 percent of homes in foreclosure are vacant); Marion County (Indianapolis), IN (9.3 percent); Cuyahoga County (Cleveland), OH (7.6 percent); Erie County (Buffalo), NY (6.6 percent); and Volusia County (Daytona Beach), FL (5.9 percent).

In this post, we take a deep dive into the data behind ATTOM’s Q2 2024 Vacant Property and Zombie Foreclosure Report, to uncover the top 10 U.S. zip codes with the highest zombie foreclosure rates in zips with 10 or more pre-foreclosure properties. Those zips include: 61605 – Peoria, IL (69.8 percent); 66604 – Topeka, KS (50 percent); 61603 – Peoria, IL (47.8 percent); 46208 – Indianapolis, IN (40.6 percent); 14092 – Lewiston, NY (40 percent); 62948 – Herrin, IL (40 percent); 14905 – Elmira, NY (36.8 percent); 32064 – Live Oak, FL (36.4 percent); 45804 – Lima, OH (36.4 percent); and 66701 – Fort Scott, KS (36.4 percent).

 

For full report, please click the source link above.

 

VA Calls for Extension of Veteran Foreclosure Moratorium through Dec. 31, 2024

Industry Update
May 29, 2024

Source: U.S. Department of Veterans Affairs

The Department of Veterans Affairs issued guidance to strongly encourage mortgage servicers to implement a targeted moratorium on foreclosures for Veterans with VA-guaranteed loans through December 31, 2024. This will help Veterans and their families stay in their homes beyond the end of the current foreclosure moratorium, which will end on May 31.

This new, targeted foreclosure moratorium will help ensure that Veterans and their families are able to stay in their homes while mortgage servicers implement the Veterans Affairs Servicing Purchase (VASP) program – a new, last-resort tool for qualified Veterans experiencing severe financial hardship. Through VASP, VA will purchase qualified Veterans’ modified loans from their loan servicers and then place them in the VA-owned portfolio as direct loans – making the loans more affordable for Veterans. VASP officially launches on May 31 and mortgage servicers must have it fully implemented by October 1, 2024.

Veterans facing financial hardship should contact their mortgage servicer and work with them to explore all available home retention options. For additional assistance, Veterans can always contact VA directly by calling 877-827-3702, option 4, or by visiting the VA Home Loans website for additional information.

“When a Veteran falls on hard times, we work with them and their loan servicers every step of the way to help prevent foreclosure, including offering repayment plans, loan modifications, and more,” said Under Secretary for Benefits Josh Jacobs. “We’re calling on mortgage servicers to follow a targeted foreclosure moratorium so we can make sure that Veterans get the support they need to stay in their homes.”

 

For full report, please click the source link above.

 

Fannie and Freddie: Single Family Serious Delinquency Rate Decreased in April, Multi-family Increased Slightly

Industry Update
May 31, 2024

Source: CalculatedRisk Newsletter

Single-family serious delinquencies decreased in April, and multi-family serious delinquencies increased slightly.

Freddie Mac reported that the Single-Family serious delinquency rate in April was 0.51%, down from 0.52% March. Freddie’s rate is down year-over-year from 0.61% in April 2023.  This is below the pre-pandemic lows.

Freddie’s serious delinquency rate peaked in February 2010 at 4.20% following the housing bubble and peaked at 3.17% in August 2020 during the pandemic.

Fannie Mae reported that the Single-Family Serious Delinquency decreased to 0.49% in April from 0.51% in March. The serious delinquency rate is down year-over-year from 0.58% in April 2023.  This is also below the pre-pandemic lows.

The Fannie Mae serious delinquency rate peaked in February 2010 at 5.59% following the housing bubble and peaked at 3.32% in August 2020 during the pandemic.

These are mortgage loans that are “three monthly payments or more past due or in foreclosure”. Mortgages in forbearance are being counted as delinquent in this monthly report but are not reported to the credit bureaus.

For Fannie, by vintage, for loans made in 2004 or earlier (1% of portfolio), 1.47% are seriously delinquent (down from 1.56% the previous month).

For loans made in 2005 through 2008 (1% of portfolio), 2.13% are seriously delinquent (down from 2.30%).

For recent loans, originated in 2009 through 2023 (98% of portfolio), 0.43% are seriously delinquent (down from 0.45%). So, Fannie is still working through a handful of poor performing loans from the bubble years.

 

For full report, please click the source link above.

 

FEMA Major Disaster Declaration – Idaho Severe Storm, Flooding, Landslides, and Mudslides

FEMA Alert
June 10, 2024  

FEMA has issued a Major Disaster Declaration for the state of Idaho to supplement state, tribal, and local recovery efforts in areas affected by a severe storm, flooding, landslides and mudslides from April 14-15, 2024.  The following counties have been approved for assistance:

Public Assistance:

  • Idaho
  • Lewis
  • Shoshone

 

Idaho Severe Storm, Flooding, Landslides and Mudslides (DR-4789-ID)

Map of Affected Area

List of Affected Zip Codes

 

Additional Resources

FEMA’s web site

FEMA’s Disaster Declaration Process

Safeguard Properties Industry Alerts

HUD Moratorium on Foreclosure

VA’s Policy Regarding Natural Disasters

Freddie Mac Disaster Relief Policies

Fannie Mae’s Natural Disaster Relief Policies

FEMA Major Disaster Declaration – Mississippi Severe Storms, Straight-line Winds, Tornadoes, and Flooding

FEMA Alert
June 10, 2024  

FEMA has issued a Major Disaster Declaration for the state of Mississippi to supplement state, tribal, and local recovery efforts in areas affected by severe storms, straight-line winds, tornadoes and flooding from April 8-11, 2024.  The following counties have been approved for assistance:

Individual Assistance:

  • Hancock
  • Hinds
  • Humphreys
  • Madison
  • Neshoba
  • Scott

 

Mississippi Severe Storms, Straight-line Winds, Tornadoes and Flooding (DR-4790-MS)

President Joseph R. Biden, Jr. Approves Major Disaster Declaration for Mississippi

Map of Affected Areas

List of Affected Zip Codes

 

Additional Resources

FEMA’s web site

FEMA’s Disaster Declaration Process

Safeguard Properties Industry Alerts

HUD Moratorium on Foreclosure

VA’s Policy Regarding Natural Disasters

Freddie Mac Disaster Relief Policies

Fannie Mae’s Natural Disaster Relief Policies

Georgia Bill Combats Squatting and Tenant Delinquency

Industry Update
June 7, 2024

Full Bill Text:  Georgia HB 1017

On April 24, 2024, Georgia passed the Georgia Squatter Reform Act (HB 1017), which amends the state code relating to crimes and offenses, adding a new section to deal with squatters.  The law presents two avenues for prompt relief: the issuance of a citation giving the alleged squatters a short time to prove the legal right to be at the premises and a quick process following the receipt of a counter affidavit by owner to have a non-jury court hearing and access to prompt ejectment through the added use of law enforcement.

In summary, a person commits unlawful squatting when they enter upon the land or premises of another and reside on the land or premises for any period of time knowingly without the knowledge or consent of the owner or rightful occupant.  The term “resides” means to inhabit or live on or within any land or premises.  Any person accused of commitment unlawful squatting will receive a citation advising that the person must present to the issuing law enforcement agency, within three business days of the citation, property executed documentation (such as a properly executed lease or rental agreement or proof of rental payments) authorizing the person’s entry on the land or premises.  If the person cannot provide proper documentation, the person will be subject to arrest for unlawful squatting and, upon conviction, to the criminal penalties under the law.  If the person provides documentation that authorizes entry on to the land or premises, a hearing will be set within seven days of submission of the documentation and, if the court finds that the submitted documentation was not properly executed or is not meritorious, the person will be subject to removal, arrest and, upon conviction, the criminal penalties under the law, and shall be assessed an additional fine based on the fair market monthly rental rate of the land or premises.

Safeguard Properties has created the following list of ‘Best Practices’ to protect properties from instances of squatting.

  1. Secure the Property
    1. Locks and Bolts: Ensure all doors and windows have robust locks.  Use heavy-duty deadbolts and padlocks.
    2. Steel Security Screens and Doors: These are highly durable and difficult to breach, preventing unauthorized access.
  2. Regular Inspections
    1. Frequent Visits: Schedule regular inspections to heck the property’s condition and ensure no on has entered.
    2. Inspection Frequency Adjustment: In high target zip codes, schedule inspections at 14-day intervals instead of monthly.
  3. Visible Security Measures
    1. Security Cameras: Install visible security cameras around the property.  Even non-functional dummy cameras can act as a deterrent.
    2. Alarm Systems: Set up alarm systems that can alert you or local authorities if someone tries to enter.
  4. Maintain the Property
    1. Clean and Clear: Keep the property well-maintained, including mowing the lawn and clearing debris.  A well-kept property appears inhabited and deters squatters.
  5. Legal Measures
    1. Proper Documentation: Ensure all paperwork and ownership documentation is up-to-date and easily accessible in case legal action is needed.
  6. Technological Solutions
    1. Smart Locks and Security Systems: Modern smart locks and security systems can be controlled remotely, allowing for better management of the property’s security.
    2. Motion Sensor Lighting: Installing motion-activated lights can deter squatters by making it difficult to approach a property unnoticed.

To utilize any of the above techniques at a specific property to deter squatters, contact Safeguard Properties.

 

For full report, please click the source link above.


 

 

 

 

 

 

 

 

 

 

 

FEMA Fire Management Assistance Declaration – Arizona Simmons Fire

FEMA Alert
May 29, 2024  

FEMA has issued a Fire Management Assistance Declaration for the state of Arizona to supplement state, tribal and local recovery efforts in areas affected by the Simmons Fire on May 28, 2024.  The following counties have been approved for assistance:

Public Assistance:

  • Pinal

 

Arizona Simmons Fire (FM-5493-AZ)

List of Affected Zip Codes

 

Additional Resources

FEMA’s web site

FEMA’s Disaster Declaration Process

Safeguard Properties Industry Alerts

HUD Moratorium on Foreclosure

VA’s Policy Regarding Natural Disasters

Freddie Mac Disaster Relief Policies

Fannie Mae’s Natural Disaster Relief Policies

FEMA Major Disaster Declaration – Arkansas Severe Storms, Straight-line Winds, Tornadoes, and Flooding

FEMA Alert
May 30, 2024  

***LAST UPDATED 6/13/24***

FEMA has issued a Major Disaster Declaration for the state of Arkansas to supplement state, tribal, and local recovery efforts in areas affected by severe storms, straight-line winds, tornadoes and flooding from May 24-27, 2024.  The following counties have been approved for assistance:

Individual Assistance:

  • Baxter
  • Benton
  • Boone
  • Fulton
  • Greene
  • Madison
  • Marion
  • Randolph

Public Assistance:

  • Baxter
  • Benton
  • Boone
  • Carroll
  • Fulton
  • Madison
  • Marion
  • Nevada
  • Randolph
  • Sharp

 

Arkansas Severe Storms, Straight-line Winds, Tornadoes and Flooding (DR-4788-AR)

President Joseph R. Biden, Jr. Approves Major Disaster Declaration for Arkansas

Map of Affected Areas

List of Affected Zip Codes

 

Additional Resources

FEMA’s web site

FEMA’s Disaster Declaration Process

Safeguard Properties Industry Alerts

HUD Moratorium on Foreclosure

VA’s Policy Regarding Natural Disasters

Freddie Mac Disaster Relief Policies

Fannie Mae’s Natural Disaster Relief Policies

Zombie Foreclosures Shrink to Even Smaller Portion of the U.S. Housing Stock in Second Quarter

Industry Update
May 29, 2024

Source: ATTOM

ATTOM, a leading curator of land, property, and real estate data, today released its second-quarter 2024 Vacant Property and Zombie Foreclosure Report showing that 1.3 million (1,289,387) residential properties in the United States sit vacant. That figure represents about 1.3 percent, or one in 79 homes, across the nation – the same as in the first quarter of this year.

The report analyzes publicly recorded real estate data collected by ATTOM — including foreclosure status, equity and owner-occupancy status — matched against monthly updated vacancy data. (See full methodology below).

The report also reveals that 237,208 residential properties in the U.S. are in the process of foreclosure in the second quarter of this year, down 2.3 percent from the first quarter of 2024 and down 23.9 percent from the second quarter of 2023. Foreclosure activity has declined this year following a surge in cases that hit after a nationwide moratorium on lenders pursuing delinquent homeowners, imposed during the Coronavirus pandemic, was lifted in the middle of 2021.

Among those pre-foreclosure properties are about 6,945 sitting vacant as zombie foreclosures (pre-foreclosure properties abandoned by owners) in the second quarter of 2024. That figure is also down from the prior quarter, by 5.4 percent, and down 20.6 percent from a year ago.

The latest count of zombie homes continues a long-term pattern of those properties representing only a tiny portion of the nation’s total housing stock – currently at just one of every 14,724 homes around the U.S. The ratio is down from 13,905 in the prior quarter and from one in 11,577 in the second quarter of last year, to the lowest level since early 2021. Zombie foreclosures numbers remain so small that most neighborhoods around the country face little or no threat of the blight and decay those homes can spread.

The portion of pre-foreclosure properties that have been abandoned into zombie status, meanwhile, also went down slightly, from 3 percent in the first quarter of 2024 to 2.9 percent in the current quarter.

“Predictions of a huge spike in foreclosures after the moratorium, with the potential for a surge in zombie properties, never came true. Indeed, the opposite has happened, as abandoned homes in foreclosure continue to get harder and harder to find around the country,” said Rob Barber, CEO for ATTOM. “Some signs have popped up over the past year that the long U.S. housing market boom is giving back some of its gains, which could lead to declining equity and more foreclosures. We are still far from losing the benefit of having zombie properties nearly disappear from the housing market landscape.”

The dip in the number of zombie properties during the second quarter comes as the housing market remains buoyed by 12 years of price increases despite the recent markers of a slowdown.

The nationwide median home value dropped quarterly in the early months of 2024 by 4 percent, to $330,000, but was still up 3 percent from a year earlier, according to ATTOM’s home sales analysis. It has increased every year since 2012, more than doubling during that time. Those gains have fueled a historic rise in homeowner wealth to the point where almost 95 percent of owners paying off mortgages have at least some equity built up and nearly 50 percent owe less than half the estimated value of their properties.

 

For full report, please click the source link above.

 

FEMA Fire Management Assistance Declaration – New Mexico Blue 2 Fire

FEMA Alert
May 26, 2024  

FEMA has issued a Fire Management Assistance Declaration for the state of New Mexico to supplement state, tribal and local recovery efforts in areas affected by the Blue 2 Fire on May 16, 2024.  The following counties have been approved for assistance:

Public Assistance:

  • Lincoln

 

New Mexico Blue 2 Fire (FM-5492-NM)

List of Affected Zip Codes

 

Additional Resources

FEMA’s web site

FEMA’s Disaster Declaration Process

Safeguard Properties Industry Alerts

HUD Moratorium on Foreclosure

VA’s Policy Regarding Natural Disasters

Freddie Mac Disaster Relief Policies

Fannie Mae’s Natural Disaster Relief Policies