Government moratoriums on new foreclosure filings are having an effect on the number of properties going into foreclosure, according to data collected by ATTOM.
The company published its Midyear 2021 U.S. Foreclosure Market Report, which shows there were a total of 65,082 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — in the first six months of 2021. That figure is down 61% from the same time period a year ago and down 78% from the same time period two years ago.
“The government’s foreclosure moratorium and mortgage forbearance program have created an unprecedented situation – historically high numbers of seriously delinquent loans and historically low levels of foreclosure activity,” said Rick Sharga, executive vice president of RealtyTrac, an ATTOM company. “With the moratorium scheduled to end on July 31, and half of the remaining borrowers in forbearance scheduled to exit that program over the next six months, we should start to get a more accurate read on the level of financial distress the pandemic has caused for homeowners across the country.”
Only 5 of the 220 metro areas analyzed in the report had increased foreclosure activity compared to a year ago. Those metros included:
- Tyler, Texas (up 88%)
- Brownsville, Texas (up 21%)
- Springfield, Illinois (up 19%)
- Sioux Falls, South Dakota (up 9%)
- Lake Charles, Louisiana (up 5%)
States with the highest foreclosure rates in the first half of 2021 were:
- Delaware (0.10% of housing units with a foreclosure filing)
- Illinois (0.09%)
- Florida (0.08%)
- Ohio (0.08%)
- Indiana (0.08%).
Other states with first-half foreclosure rates that ranked among the 10 highest nationwide were:
- New Jersey (0.07%)
- Nevada (0.07%)
- South Carolina (0.07%)
- Louisiana (0.06%)
- New Mexico (0.06%).