Q1 Foreclosure Report Reveals a ‘Market in Transition’

ATTOM Data, a provider of all manors of real estate data, has released its first quarter Foreclosure Market Report which revealed that there were a total of 95,349 U.S. properties with foreclosure filings against them, down less than 1% year-over-year, but up 3% from the fourth quarter of 2023. 

The report also shows a total of 32,878 U.S. properties with foreclosure filings in March 2024, down less than 1% from the previous month and down 10% from a year ago. 

“Q1 2024’s foreclosure data reveals a market in transition, with slight increases in filings and starts, alongside a notable decrease in REO properties,” explains Rob Barber, CEO at ATTOM. “While foreclosures remain relatively stable, we’re closely monitoring these trends. Homeowners continue to hold significant equity, contributing to a persistently hot housing market.” 

Foreclosure starts increase nationwide

Among all dwellings, a total of 65,657 properties started the foreclosure process during the first quarter, up 4% year-over-year, and up 2% from the previous quarter. 

States that had 100 or more foreclosures starts in Q1 2024 and saw the greatest quarterly increase included, New Hampshire (up 43%); Illinois (up 26%); Florida (up 22%); Rhode Island (up 21%); and Nevada (up 16%). 

Highest foreclosure rates in Delaware, New Jersey, and South Carolina

Nationwide one in every 1,478 housing units had a foreclosure filing during the first quarter. States with the highest foreclosure rates were Delaware (one in every 894 housing units with a foreclosure filing); New Jersey (one in 919); South Carolina (one in 929); Nevada (one in 961); and Florida (one in 973). 

Among 224 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates during the first quarter of 2024 were Columbia, South Carolina (one in every 569 housing units); Spartanburg, South Carolina (one in 597); Lakeland, Florida (one in 624); Atlantic City, New Jersey (one in 628); and Cleveland, Ohio (one in 662). 

Bank repossessions increase 7% from last quarter

Lenders repossessed 10,052 U.S. properties through foreclosure (REO) in Q1 2024, up 7% from the previous quarter but down 20% from a year ago. 

U.S. Completed Foreclosures (REOs)

Those states that had the greatest number of REOs during the first quarter were Michigan (1,049 REOs); California (845 REOs); Pennsylvania (838 REOs); Illinois (810 REOs); and Texas (596 REOs). 

Average time to foreclose increases 2% from previous quarter

Properties foreclosed in Q1 2024 had been in the foreclosure process for an average of 736 days. While this marks a slight increase from the previous quarter, it represents a 20 percent decrease from the same time last year, continuing a downward trajectory observed since mid-2020. 

Average Days to Complete Foreclosure

States with the longest average foreclosure timelines for homes foreclosed during the first quarter were Louisiana (2,641 days); Hawaii (2,031 days); New York (1,958 days); Nevada (1,701 days); and Kentucky (1,701 days). 

States with the shortest average foreclosure timelines for homes foreclosed during the first quarter were Montana (123 days); Virginia (152 days); Texas (163 days); Wyoming (191 days); and West Virginia (217 days). 

March 2024 Foreclosure Activity High-Level Takeaways

  • Nationwide in March 2024, one in every 4,286 properties had a foreclosure filing. 
  • States with the highest foreclosure rates in March 2024 were Illinois (one in every 2,548 housing units with a foreclosure filing); Connecticut (one in 2,609); New Jersey (one in 2,638); Florida (one in 2,779); and South Carolina (one in 2,867). 
  • 23,312 U.S. properties started the foreclosure process in March 2024, up 3% from the previous month but down 4% from March 2023. 
  • Lenders completed the foreclosure process on 2,701 U.S. properties in March 2024, down 20% from the previous month and down 44% from March 2023. 

Click here to view the data in its entirety, including a foreclosure ranking of all 50 states.

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Kyle G. Horst

Kyle G. Horst is a reporter for MortgagePoint. A graduate of the University of Texas at Tyler, he has worked for a number of daily, weekly, and monthly publications in South Dakota and Texas. With more than 10 years of experience in community journalism, he has won a number of state, national, and international awards for his writing and photography including best newspaper design by the Associated Press Managing Editors Group and the international iPhone photographer of the year by the iPhone Photography Awards. He most recently worked as editor of Community Impact Newspaper covering a number of Dallas-Ft. Worth communities on a hyperlocal level. Contact Kyle G. at kyle.horst@thefivestar.com.
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