The foreclosure rate in New Jersey last month was third highest in the country, after Illinois and Florida, as the rate climbed nationwide for a sixth month in the wake of the Supreme Court’s scrapping a pandemic-era ban.
About 1 in every 1,923 Illinois homes faced foreclosure last month, while Florida’s rate was 1 in 3,180 and New Jersey’s 1 in 3,438, according to Attom Data. Across the nation, 1 in 6,675 homes was hit with a foreclosure filing. Overall, filings rose 5 percent from September to 20,587.
Among metropolitan areas with more than 1 million residents, New York City led with 667 foreclosure starts. Miami followed with 622 and Los Angeles had 430.
The grim numbers could mask a brighter reality, however. While an increase was probably inevitable, “it’s increasing at a slower rate and most of the activity is primarily on vacant and abandoned properties, or loans that were in foreclosure prior to the pandemic,” said Rick Sharga, executive vice president of Attom subsidiary RealtyTrac.
In Chicago, one of every 2,284 homes faced foreclosure in October, ranking it fourth among cities with a population of at least 220,000. St. Louis had the highest foreclosure rate in that category, followed by Trenton and Miami.
Across the nation, lenders started the foreclosure process on 10,759 properties last month, an increase of 5 percent from September and a 115 percent jump from a year ago.
Because there has been a moratorium on foreclosure actions, the process is just starting now for most properties, so foreclosure starts exceed actual foreclosures by far more than usual, said Sharga.
“The ratio of foreclosure starts to foreclosure completions will normalize over time as we get back to normal levels of activity,” Sharga said.