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Foreclosure Activity Closer to Pre-Pandemic Levels

Attom’s midyear report finds foreclosures inching closer to their historically normal level. In Fla., one out of every 527 housing units is in some level of foreclosure.

IRVINE, Calif. – Attom’s Midyear 2023 U.S. Foreclosure Market Report found a total of 185,580 U.S. properties in some phase of the foreclosure process – default notices, scheduled auctions or bank repossessions – in the first six months of 2023. It’s up 13% year-to-year and up 185% from the same time period two years ago, though national moratoriums impact that percentage.

Overall, Florida ranked No. 7 nationally with 18,530 housing units in some level of foreclosure – though not all of those will eventually be taken over by a lender if owners can recoup their late payments or work out a repayment deal with the bank. Overall, it represents 0.19% of all housing units in the state, or one out of every 527 housing units.

Year-to-year, Florida foreclosure activity is up 5.14%, though it’s up 136.02% compared to January-to-June 2021.

“Similar to the first half of 2022, foreclosure activity across the United States maintained its upward trajectory, gradually approaching pre-pandemic levels in the first half of 2023,” says Rob Barber, CEO for Attom. “Although overall foreclosure activity remains below historical norms, the notable surge in foreclosure starts indicates that we may continue to see a rise in foreclosure activity in the coming years.”

At the metro level, two Florida cities ranked in the top 10 for foreclosure rates: Lakeland with a 0.29% rate and Jacksonville with a 0.26% rate.

Florida, however, ranked second in the number of foreclosure starts – the first step in the foreclosure process. In the first half of 2023, California led the nation with14,217 foreclosure starts), and Florida ranked second with 13,837. Texas (13,419 foreclosure starts), New York (8,772 foreclosure starts) and Illinois (7,995 foreclosure starts) round out the top five.

In a look at just the second quarter of 2023, Attom found that the foreclosure process itself hit a record high – an average of 1,212 days, the highest number of average days to foreclose since Q1 2018. It’s up 28% from the previous quarter.

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