Residential News » Irvine Edition | By Monsef Rachid | May 16, 2019.

Yet Foreclosure Starts Spike in Washington, Florida, Oregon and Louisiana

According to ATTOM Data Solutions April 2019 U.S. Foreclosure Market Report, U.S. foreclosure filings -- default notices, scheduled auctions and bank repossessions -- were reported on 55,646 U.S. properties in April 2019, down 5 percent from the previous month and down 13 percent from a year ago for the 10th consecutive month with an annual decline.

"While overall foreclosure activity is down nationwide, there are still parts of the country that we need to keep a close eye on," said Todd Teta, chief product officer at ATTOM Data Solutions. "For instance, Florida is seeing a steady annual increase in total foreclosure activity for the 8th consecutive month, which is being sustained by a constant annual double-digit increase in foreclosure starts."

Foreclosure starts increase annually in 17 states

Lenders started the foreclosure process on 30,524 U.S. properties in April 2019, down 5 percent from last month and down 10 percent from April 2018 -third consecutive month with an annual decline.

States that posted annual decreases in foreclosure starts in April 2019, included New York (down 43 percent); Nevada (down 36 percent); Colorado (down 34 percent); Maryland (down 31 percent); and Michigan (down 25 percent).

Those major metropolitan statistical areas with a population greater than 500,000 that saw a large annual increase in foreclosure starts from last year included Orlando, Florida (up 90 percent); Miami, Florida (up 45 percent); Columbus, Ohio (up 35 percent); Portland, Oregon (up 31 percent); and El Paso, Texas (up 22 percent).

Counter to the national trend 17 states had an annual increase in foreclosure starts. Those states included Washington (up 38 percent); Florida (up 34 percent); Oregon (up 22 percent); Louisiana (up 12 percent); and Georgia (up 11 percent).

Highest foreclosure rates in New Jersey, Maryland and Delaware

Nationwide one in every 2,433 housing units had a foreclosure filing in April 2019.

States with the highest foreclosure rates were New Jersey (one in every 980 housing units with a foreclosure filing); Maryland (one in every 1,218 housing units); Delaware (one in every 1,249 housing units); Illinois (one in every 1,371 housing units); and Florida (one in every 1,415 housing units).

Among 220 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in April 2019 were Atlantic City, New Jersey (one in every 702 housing units with a foreclosure filing); Fayetteville, North Carolina (one in every 732 housing units); Clarksville, Tennessee (one in every 853 housing units); Columbia, South Carolina (one in every 946 housing units); and Deltona-Daytona Beach, Florida (one in every 966 housing units).

Foreclosure completions continue to decline

Lenders completed foreclosures (REO) on 11,078 U.S. properties in April 2019, down 9 percent from the previous month and down 22 percent from a year ago - a 6thconsecutive annual decline.

States that saw a double-digit annual decline in REOs included Alabama (down 45 percent); Arizona (down 38 percent); North Carolina (down 32 percent); California (down 20 percent); and Nevada (down 14 percent). 

Counter to the national trend, 10 states posted year-over-year increases in REOs in April 2019, including Washington (up 53 percent); Connecticut (up 22 percent); Kentucky (up 19 percent); and New York (up 3 percent).