Uptick in February’s Foreclosure Activity

Key Highlights

• Foreclosure activity in February up +16% from January
• Foreclosure starts in February increase +15%

February 2021 US Foreclosure Market Report Indicates Increased Foreclosure Activity and Starts

Combining the resources of ATTOM Data Solutions and RealtyTrac, a subsidiary now owned by ATTOM, the February 2021 US Foreclosure Market Report was released last week.  This report indicates that February 2021 saw foreclosure filings (default notices, scheduled auctions, or bank repossessions) increase +16% from January 2021 but  that filings still well below, -77%, those foreclosure filings in February 2020.

Still, increases are increases and foreclosure filings increases are worth paying attention to.

States and Metros with Highest Foreclosure Rates

Nationally, one in every 12,182 residential housing units had a foreclosure filing during February 2021.  States with the highest foreclosure rates in February 2021 included:

• Utah – 1 in every 3,883 units
• Delaware – 1 in every 5,219 units
• Florida – 1 in every 6,232 units
• Illinois – 1 in every 6,336 units
• Louisiana – 1 in every 7,923 units

Smaller metro areas (populations +200,000) paying more attention to higher foreclosure rates included Provo UT, Shreveport LA, Cleveland OH and Florence SC in February 2021.  Larger metro areas (populations+1M) with the worst foreclosure rates in February 2021 included Cleveland OH, Jacksonville FL, Riverside CA, Birmingham AL and St. Louis MO.

Monthly Foreclosure Starts Increase in 29 States

Lenders initiated the foreclosure process on nearly 6,000 properties in February 2021, an increase of +15% from January yet still down -78% from last year at the same time.

As we know, government moratorium bans on government-back loans for homeowners and borrowers in forbearance are protected from foreclosure actions.  But, loans on commercial properties, investment properties and vacant/abandoned properties often don’t have such protections.  “This,” according to RealtyTrac’s executive vice president, Rick Sharga, “…could be why we’re seeing a slight increase in foreclosure starts…”

States having at least 100 foreclosure starts in February with the greatest monthly increases included Utah, +230%; North Carolina, +73%; Michigan, +60%; Georgia, +58%, and Mississippi, +54%.

Completed foreclosures that were repossessed by lenders in February 2021 increased +8% from January but were still down -85% from the previous year.

Thanks to ATTOM Data Solutions and RealtyTrac.

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