IRVINE, California, January 14, 2021 / PRNewswire / – ATTOM Data Solutions, licensor of the country’s most comprehensive foreclosure data and parent company of RealtyTrac (www.realtytrac.com), a foreclosure listing portal, today released its report on the 2020 year-end US foreclosure market, which shows foreclosure deposits – notices of default, scheduled auctions and bank foreclosures – were reported on 214,323 US properties in 2020, down from 57 % from 2019 and 93% from a high of nearly 2.9 million in 2010, the lowest level since monitoring began in 2005.
Those 214,323 properties that were declared foreclosed in 2020 represented 0.16% of all U.S. housing units, up from 0.36% in 2019 and a peak of 2.23% in 2010.
Historic year-end 2020 foreclosure activity and rate
ATTOM’s Year-End Foreclosure Report provides a unique number of properties with a foreclosure filing during the year, based on recorded and publicly released foreclosure filings collected from over 2,200 counties nationwide, with address-level data on nearly 25 million foreclosure claims historically, also available for license or custom reports. See the full methodology below.
The report also includes new data for December 2020, showing that there were 10,876 U.S. properties with foreclosure declarations, up 8 percent from the previous month but down 80 percent from a year ago.
“Government moratoria have effectively ended foreclosure activity on everything except vacant and abandoned properties.” There is a backlog of foreclosures – loans that were in foreclosure prior to the moratorium; loans that would have defaulted under normal circumstances; and loans whose borrowers are in financial distress due to the pandemic, “said Rick sharga, Executive Vice President of RealtyTrac, an ATTOM Data Solutions company. “While it is still highly unlikely that we will see another wave of foreclosures like the one we had during the Great Recession, we will not really know how big this backlog is until government programs expire.”
Bank foreclosures have fallen 95% since their peak in 2010
Lenders took over 50,238 properties by way of foreclosure (REO) in 2020, down 65% from 2019 and 95% from a peak of 1,050,500 in 2010, the lowest level as far as data is available – 2006.
Contrary to the national trend, there have been metropolitan statistical areas of over 200,000 inhabitants that have seen a year-over-year increase in EDOs, including Lake Havasu, Arizona (up to 30 percent); Champaign, Illinois (up 29%); Chico, California (up 26 percent); and Bremerton, Washington State (up 25%).
Lenders repossessed 1,972 properties in the United States through foreclosures December 2020, down 2% from last month and 86% from a year ago.
Foreclosure begins at new record across the country, Idaho only state to see an annual increase
Lenders began the foreclosure process on 131,372 properties in the United States in 2020, down 61% from 2019 and 94% from a high of 2,139,005 in 2009, to a new all-time low going back to the data available at the start of the seizures – 2006.
“Nowhere is the impact of government foreclosure moratoriums and mortgage forbearance programs more evident than in the numbers from the start of foreclosures from 2020. We ended the year with near record highs. of delinquent loans, but historically low levels of foreclosure activity, ”said Sharga told me. “The good news is that the government and the mortgage industry have been successful in working together to avoid unnecessary foreclosures; the question remains how many homeowners whose finances have been affected by the pandemic will end up defaulting on their loans, and if the strength of the housing market will. help cushion the fallout. “
States that experienced a drop in foreclosure departures compared to last year included Oregon (down 79%); Kansas (down 77%); Arkansas (down 77%); Nevada (down 71 percent); and Massachusetts (down 70%).
Against the national trend, Idaho saw a slight increase (+ 4%) compared to last year.
Metropolitan statistical areas of over one million people that experienced at least 500 foreclosure starts in 2020, and which experienced the largest decline in foreclosure starts compared to last year, included Jacksonville, Florida (down 74 percent); Las Vegas, Nevada (down 74 percent); Washington DC (down 72 percent); Memphis, Tennessee (down 72 percent); and Orlando florida (down 71%).
Delaware, New Jersey, Illinois after highest state foreclosure rates in 2020
The states with the highest seizure rates in 2020 were Delaware (0.33 percent of housing units with a foreclosure record); New Jersey (0.31 percent); Illinois (0.30 percent); Maryland (0.26 percent); and Caroline from the south (0.24 percent).
To round out the top 10 states with the highest foreclosure rates, Florida (0.23 percent); Connecticut (0.22 percent); Ohio (0.21 percent); Georgia (0.19 percent); and Indiana (0.18 percent).
Peoria, Rockford, Trenton after the best metro foreclosure rates in 2020
Among the 220 metropolitan statistical regions with at least 200,000 inhabitants, those with the highest seizure rates in 2020 were Peoria, Illinois (0.48 percent of housing units with a foreclosure record); Rockford, Illinois (0.44 percent); Trenton, New Jersey (0.44 percent); Atlantic City, New Jersey (0.40 percent); and McAllen, Texas (0.35%).
The metropolitan areas with more than one million inhabitants that had the highest foreclosure rate were, Cleveland, Ohio (0.34 percent); Chicago, Illinois (0.30 percent); Baltimore, Maryland (0.29 percent); Philadelphia, Pennsylvania (0.29 percent); and Riverside, California (0.28 percent).
Average time to prevent increases each year
U.S. properties foreclosed in the fourth quarter of 2020 had gone through a foreclosure process for an average of 857 days, a 3% increase from the previous quarter and a year ago.
Average end of year days 2020 to complete foreclosure
States with the longest average foreclosure time in Q4 2020 were Hawaii (2186 days); New York (1,465 days); Kentucky (1390 days); Pennsylvania (1275 days); and Massachusetts (1223 days).
Methodology of the report
The ATTOM Data Solutions US Foreclosure Market report provides a tally of the total number of properties with at least one foreclosure deposit entered into ATTOM Data Warehouse during the month and quarter. Some foreclosure records entered into the database during the quarter may have been recorded in the previous quarter. Data is collected from more than 2,200 counties nationwide, and those counties represent over 90% of the US population. The ATTOM report incorporates the documents filed in the three phases of foreclosure: Default – Notice of default (NOD) and Lis Pendens (LIS); Auction – Notice of sale by the trustee and notice of sale by foreclosure (NTS and NFS); and real estate owned or REO (which has been foreclosed and repurchased by a bank). For annual, semi-annual and quarterly reports, if more than one type of foreclosure document is received for a property during the period, only the most recent filing is counted in the report. Annual, semi-annual, quarterly, and monthly reports all check to see if the same type of document has ever been filed on a property. If so, and if that previous filing was within the estimated foreclosure period for the state in which the property is located, the report does not count the property in the current year, quarter, or month. .
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ATTOM Data Solutions provides foreclosure data licenses that can power various business sectors including real estate, insurance, marketing, government, mortgages and more. Multi-source ATTOM from 3,000 counties on property taxes, deeds, mortgages, environmental hazards, natural hazards and neighborhood data for more than 155 million residential and commercial properties in the United States covering 99% of the country’s population.
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