US foreclosures drop to lowest level since 2005, but in Florida they are rising

About 625K homes faced foreclosure in 2018, a fraction of the nearly 2.9M recorded at peak in 2010

TRD NATIONAL /
Jan.January 17, 2019 07:00 AM

(Credit: iStock)

American lenders last year initiated foreclosures on the fewest number of American homes since 2005, raising hopes that the worst of the last housing crisis might be in the rearview mirror. While overall foreclosure numbers fell nationwide, several states recorded increases, including Florida.

In total, about 625,000 homes faced foreclosure in 2018, a fraction of the nearly 2.9 million recorded at the peak of the foreclosure crisis in 2010, according to a report from ATTOM Data Solutions released Thursday.

Lenders initiated foreclosures on 0.47 percent of American homes last year, 0.4 percentage point decline from 2017 and a 13-year low.

ATTOM tallied default notices, scheduled auctions and bank repossessions to reach its totals.

The drop is evidence that “most of the distress from the last housing crisis has now been cleaned up,” according to ATTOM’s Todd Teta.

In December alone, the 52,069 properties targeted for foreclosure represented a 19 percent dip year over year, and the sixth consecutive month of year-over-year-decline following a brief spike in July,

But the numbers didn’t decline in every part of the country.

Filings picked up 13 percent last year in Florida, the epicenter of the foreclosure crisis a decade ago. The state registered one of the highest foreclosure rates in the nation in 2018, with about 0.71 percent of homeowners defaulting on their loans.

New Jersey, which has posted the country’s highest foreclosure rate every year since 2015, saw 1.33 percent of homeowners default last year, according to the report. Illinois came in third at 0.74 percent.

The foreclosure numbers are mostly consistent with ATTOM’s mid-2018 report, which found numbers dropping in the New York and Chicago metro areas, but ramping up in Los Angeles and South Florida. That indicates lenders could be loosening their criteria in those markets. Foreclosure activity rose sharply in New York City in 2017, reaching its highest level there since 2009.

The falling nationwide foreclosure numbers coincide with a steady drop in mortgage delinquencies, buoying confidence in the wider economy even as the U.S. housing market shows signs of slowing.


Related Articles

arrow_forward_ios
Developer Sam Goldman and an original rendering of the apartment building at 7000 N. Glenwood Ave. 

To avoid rezoning battle, developer cuts Heartland Cafe redevelopment plans in half

Dr. Kam Patel and 400 W. Huron tower

Can a $10M condo — not in No. 9 Walton — find a buyer?

The Atworth at Mellody Farm and Passco CEO William O. Passo

In a tight market, California investor pays $90M for suburban rental complex

2308 W. Giddings Street and "Windy City Rehab" stars Alison Victoria and Donovan Eckhardt (Credit: HGTV)

Buyers to “Windy City Rehab”: Take back this broken $1.36M house

The Clare at 55 E. Pearson St. and LCS CEO Joel Nelson (Credit: Google Maps)

Near North Side luxury senior living tower trades for $105M

Blackhawk players Johnathan Toews (left) and Patrick Kane owned units that sold for over $6 million each this year in the star-studded No. 9 Walton tower (Credit: Getty Images)

Here are Chicago’s top 10 residential sales of 2019

Farpoint Development and Golub & Company closed on the purchase of a 1,675-unit Prairie Shores apartment complex for just under 177M

Here are the biggest Chicago-area multifamily sales in 2019

Home sales fell 7.6 percent year-over-year in November (Credit: iStock)

Buyers in the Chicago area remain on the sidelines

arrow_forward_ios
Loading...