Fewest Foreclosure Filings in 14 Years

According to a recent report from Attom Data Solutions, there were a total of 143,105 properties with foreclosure filings (default notices, scheduled auctions or bank repossessions) in 3Q 2019.  This is down 6% from the previous quarter and down 19% from a year ago.  The figures also represent the lowest level since Q2 2005 – a more than 13-year low.

U.S. foreclosure activity in Q3 2019 was 49% below the pre-recession average of 278,912 properties with foreclosure filings per quarter between Q1 2006 and Q3 2007.  This is the 12th consecutive quarter where U.S. foreclosure activity has registered below the pre-recession average.

“Foreclosure activity continues to decline across the country, which is a good sign that the housing market and the broader economy remain strong,” said Todd Teta of Attom Data Solutions. “This is not to say that everything in the latest foreclosure picture is rosy. Some states have seen their foreclosure rates increase this year, which could cause some concern.”

Lenders started the foreclosure process on 78,394 U.S. properties in Q3 2019, down 8% from the previous quarter and down 15% from a year ago.  This is the 17th consecutive quarter with a year-over-year decrease in foreclosure starts.

Counter to the national trend, 14 states posted year-over-year increases in foreclosure starts in Q3 2019, including Montana (up 33%); Georgia (up 32%); Washington (up 16%); Louisiana (up 15%); and Michigan (up 12%).

Also counter to the national trend, 66 of 220 metropolitan statistical areas analyzed in the report (30%) posted a year-over-year increase in foreclosure starts in Q3 2019.  Nationwide one in every 946 properties had a foreclosure filing in the third quarter.  In addition, lenders repossessed 34,432 U.S. properties through foreclosure (REO) in Q3 2019, up 6% from the previous quarter but down 33% from a year ago.

Source:  Attom Data Solutions/National Mortgage News