Foreclosure activity at highest in January since the start of the pandemic

According to the January 2022 U.S. Foreclosure Market Report from ATTOM, a licensor of foreclosure data, there were a total of 23,204 U.S. properties with foreclosure filings in January, up 29% from December and 139% compared to January 2021.

Foreclosure deposits include notices of default, scheduled auctions and bank foreclosures. Lenders repossessed 4,784 U.S. properties through completed foreclosures (REOs) in January, up 57% from December and 235% year-over-year, the seventh consecutive month with a annual increase in completed seizures.

“The increased level of foreclosure activity in January was not a surprise,” Rick Sharga, executive vice president of RealtyTrac, said in a statement. “This year the increases were probably a bit more dramatic than usual as foreclosure restrictions placed on mortgage servicers by the CFPB expired at the end of December.”

Foreclosures typically slow during the holidays in November and December and pick up again in the new year, Sharga added.

States with at least 100 or more REOs that saw the largest monthly increase in January 2022 included Michigan (up 622%), Georgia (163%) and Texas (98%). Additionally, Detroit leads with the most completed foreclosures with 1,013.

“It’s very important to keep these numbers in context,” Sharga said. “Foreclosure completions are still well below normal levels – less than half the number in January 2020 before the pandemic was declared, and around 60% below the number of foreclosure completions in 2019.

“We will likely continue to see significant year-over-year percentage increases for the remainder of this year, but it is also likely that lockdown activity will remain below historically normal levels through to the end. of 2022,” Sharga continued.

One in 5,922 homes had a foreclosure case in January 2022, ATTOM said, with the highest foreclosure rates in New Jersey (one in 2,336 homes), Illinois (one in 2,740), Nevada (one in 3,119) and Michigan. (one in 3,127).

Of 220 metropolitan statistical areas with a population of at least 200,000, Detroit leads with one in 1,547 homes filed for foreclosure in January.

Lenders began foreclosures on 11,854 U.S. properties in January 2022, up 29% from December and 126% year-on-year. Illinois recorded the fourth highest number of foreclosures in January with 757. Of the 220 metropolitan statistical areas with at least 200,000 residents and at least 100 or more foreclosures in January, Detroit was second in terms of annual increase, with an increase of 298%.

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