Foreclosure filings are up 14% from last month and up 118% from a year ago.

U.S. foreclosures reached pre-pandemic levels nationwide in August, according to the latest U.S. Foreclosure Market Report released by ATTOM. There were a total of 34,501 U.S. properties with foreclosure filings — default notices, scheduled auctions, or bank repossessions — up 14% from last month and up 118% from a year ago. Lenders began the foreclosure process on 23,952 U.S. properties in August, up 12% from last month and 187% from a year ago. “Two years after the onset of the COVID-19 pandemic, and after massive government intervention and mortgage-industry efforts to prevent defaults, foreclosure starts have almost returned to 2019 levels,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “August foreclosure starts were at 86% of the number of foreclosure starts in August 2019, but it’s important to remember that even then, foreclosure activity was relatively low compared to historical averages.” States with at least 100 foreclosure starts in August, and which saw the greatest monthly increases in foreclosure starts, included: Oklahoma (up 80%), Tennessee (up 74%); Virginia (up 64%); Arkansas (up 53%); and Washington (up 50%). One in every 4,072 housing units had a foreclosure filing nationwide in August.  Lenders repossessed 3,938 U.S. properties through completed foreclosures (REOs) in August, up 28% from last month and up 59% from last year. “Repossessions are likely to continue running below pre-pandemic levels for several reasons, most importantly that over 90% of borrowers in foreclosure have positive equity in their homes, and would benefit from selling these properties at a profit rather than risk losing everything to a foreclosure auction or lender repossession,” Sharga said.

Source: ATTOM