Key Highlights

  • Q3 foreclosure filings down -12% from Q2 and down -81% from one year ago to lowest level since tracking quarterly filings in Q1 2008, according to Q3 2020 US Foreclosure Market Report by RealtyTrac owned by ATTOM Data Solutions
  • Foreclosure activity shut down due to foreclosure moratoria by federal, state and local governments

Here’s a word(s) to the wise from Rick Sharga, executive vice president of RealtyTrac, an ATTOM Data company. “Foreclosure activity has, for all intents and purposes, ground to a halt due to moratoria put in place by the federal, state and local governments and the mortgage forbearance program initiated by the CARES Act. BUT it’s important to remember that the numbers we’re seeing today are artificially low, even as the number of seriously delinquent loans continues to increase, and that we’ll see a significant – and probably quite sudden – burst of foreclosure activity once these various government programs expire.”

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States that posted some of the largest y/y decreases in foreclosure starts in Q3 2020 included Pennsylvania, Wisconsin, Washington State, Maryland and Colorado. Metros with the largest year-over-year decreases in foreclosure starts included Washington DC, Philadelphia, Cleveland, Denver, Baltimore, Columbus OH, Detroit, Chicago, Providence RI and Charlotte NC.

The highest foreclosure rates in Q3 2020 nationwide included South Carolina, Illinois and New Mexico, The highest foreclosure rates in major metros included McAllen-Edinburg TX, Davenport IO, Shreveport LA, Columbia SC, and Rockford IL.

***BUT, despite this decrease in foreclosure activity primarily due to governmental moratoria on foreclosure and the CARES Act forbearance program during Q3 2020, there are some metro markets beginning to see increases in foreclosure starts. These markets include, according to RealtyTrac:

  • Kansas City MO – +94%
  • New York-Newark-Jersey City NY-NJ-PA – +81%
  • Virginia Beach-Norfolk-Newport News, VA-NC – +59%
  • Indianapolis-Carmel-Anderson IN – +42%
  • Richmond VA – +37%
  • Detroit-Warren-Dearborn MI – +15%
  • Chicago-Naperville-Elgin IL-IN-WI – +11%
  • Nashville-Davidson-Murfreesboro-Franklin TN – +5%
  • Charlotte-Concord-Gastonia NC-SC – +4%

ATTOM’s September and Q3 2020 foreclosure market analysis also indicated that the number of properties lender repossessed through foreclosure was down -22% from Q2 2020 and down -82% from Q3 2019, the lowest level since ATTOM began tracking this data point.

Thanks to RealtyTrac and ATTOM Data Solutions.

Also read: NYC’s Largest Price Drops from Q3 2018 to Q3 2019, Why It’s Now Harder to Get a Mortgage/Refinance, Top Housing Markets Most Vulnerable to COVID-Economic Impacts