Foreclosure Activity at Historical Lows Due to Moratoria

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According to ATTOM Data’s Q3 2020 U.S. Foreclosure Market Report, foreclosure filings were down 81% from one year ago to the lowest level since they began tracking quarterly filings back in 2008.  The report says there were a total of 27,016 properties with foreclosure filings for the quarter. In addition, lenders repossessed 6,076 properties through foreclosure (REO) in Q3, down 22% from Q2 and down 82% from one year ago – another record low since they began tracking.  Interestingly, ATTOM says the recent government moratoriums were the source of the low numbers however they cautioned that once those moratoriums are lifted, there will be a “burst of activity.”  Indeed…

“Foreclosure activity has, for all intents and purposes, ground to a halt due to moratoria put in place by the federal, state and local governments and the mortgage forbearance program initiated by the CARES Act,” said Rick Sharga, executive vice president of RealtyTrac, an ATTOM Data company. “But it’s important to remember that the numbers we’re seeing today are artificially low, even as the number of seriously delinquent loans continues to increase, and that we’ll see a significant – and probably quite sudden – burst of foreclosure activity once these various government programs expire.”

U.S. Foreclosure Market Data by State – Q3 2020

Rate Rank State Name Total Properties with Filings 1/every X HU (Foreclosure Rate) %∆ Q2 2020 %∆ Q3 2019 Pre-Recession Avg %∆ from Pre-Recession Avg
  U.S. 27,016 5,048 -11.87 -81.12 278,912 -90%
16 Alabama 511 4,392 -13.83 -78.16 1,145 -55%
26 Alaska 50 6,263 28.21 -80.47 275 -82%
33 Arizona 355 8,369 -58.96 -82.88 7,092 -95%
37 Arkansas 123 11,073 -28.49 -82.85 1,311 -91%
10 California 3,750 3,756 -10.22 -69.26 46,235 -92%
41 Colorado 148 15,893 -38.33 -87.72 10,120 -99%
18 Connecticut 322 4,697 -33.74 -85.56 2,445 -87%
5 Delaware 123 3,482 -54.10 -87.95 195 -37%
  District of Columbia 9 34,616 -75.00 -95.50 72 -88%
7 Florida 2,620 3,568 3.52 -83.68 31,238 -92%
13 Georgia 1,043 4,066 -4.05 -81.01 14,612 -93%
36 Hawaii 57 9,457 -51.28 -88.10 190 -70%
38 Idaho 62 11,480 -17.33 -77.54 695 -91%
2 Illinois 1,764 3,031 -17.22 -82.90 14,617 -88%
20 Indiana 571 5,027 29.77 -81.27 7,950 -93%
11 Iowa 369 3,758 39.77 -67.46 880 -58%
31 Kansas 170 7,449 30.77 -79.54 714 -76%
12 Kentucky 498 3,965 58.10 -61.43 1,659 -70%
14 Louisiana 492 4,158 17.42 -73.10 1,072 -54%
6 Maine 208 3,553 18.18 -66.77 270 662%
8 Maryland 683 3,569 -54.07 -85.92 2,288 -70%
46 Massachusetts 83 34,732 -70.14 -96.20 3,624 -98%
39 Michigan 318 14,405 -28.22 -90.22 18,687 -98%
40 Minnesota 162 14,941 -47.40 -86.08 1,854 -91%
21 Mississippi 243 5,416 200.00 -72.10 286 -15%
24 Missouri 465 5,969 18.02 -75.77 4,528 -90%
43 Montana 27 18,729 28.57 -84.57 270 -90%
34 Nebraska 93 8,933 -34.97 -82.15 768 -88%
42 Nevada 74 16,690 -41.73 -95.02 6,722 -99%
35 New Hampshire 68 9,279 38.78 -81.22 63 8%
4 New Jersey 1,088 3,314 -27.80 -86.81 7,048 -85%
3 New Mexico 303 3,079 4.12 -70.70 878 -65%
30 New York 1,193 6,946 68.74 -86.35 8,831 -86%
17 North Carolina 991 4,615 9.14 -81.76 5,351 -81%
48 North Dakota 10 36,768 -44.44 -88.64 51 -80%
9 Ohio 1,425 3,641 5.24 -80.70 20,349 -93%
15 Oklahoma 399 4,319 7.84 -74.87 2,995 -87%
45 Oregon 65 26,931 -74.90 -92.95 1,953 -97%
22 Pennsylvania 1,026 5,530 -45.07 -84.13 7,085 -86%
23 Rhode Island 84 5,564 -16.83 -79.95 292 -71%
1 South Carolina 965 2,339 42.12 -72.13 1,282 -25%
49 South Dakota 9 42,666 80.00 -82.00 10 -7%
25 Tennessee 472 6,209 18.30 -76.75 6,071 -92%
19 Texas 2,210 4,873 -18.39 -75.22 24,683 -91%
29 Utah 156 6,834 -39.30 -80.98 2,269 -93%
50 Vermont 4 83,253 -63.64 -96.85 6 -38%
28 Virginia 526 6,637 12.63 -82.29 2,063 -75%
44 Washington 156 19,643 -65.41 -89.78 3,875 -96%
47 West Virginia 25 35,629 -34.21 -91.50 98 -74%
27 Wisconsin 414 6,476 29.78 -79.55 2,007 -79%
32 Wyoming 34 8,088 -27.66 -79.27 82 -58%

Click here to read the full report at ATTOM.com.

 

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Director of Education & Outreach, National Real Estate Investors Association

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