Houston, Texas had the highest rate of foreclosures in the 2023 third quarter, with 1 in every 371 homes in the metro receiving a foreclosure filing, per ATTOM.

The number of homeowners hit with foreclosure notices in the third quarter of the year jumped 34% from a year ago to nearly 125,000, per ATTOM. They were up 28% from the previous quarter.

The report also indicates a total of 37,679 U.S. properties with foreclosure filings in September 2023, marking an 11 percent increase from the previous month and an 18 percent rise from September 2022.

Lenders initiated the foreclosure process on 68,961 U.S. properties in Q3 2023, showing a 1 percent decrease from the preceding quarter but a 3 percent uptick from a year ago, approaching levels observed before the pandemic.

States with 1,000 or more foreclosure starts in Q3 2023 and notable annual increases include North Carolina (up 53 percent), Louisiana (up 47 percent), Pennsylvania (up 24 percent), Alabama (up 18 percent), and Nevada (up 16 percent).

Rob Barber, CEO at ATTOM, commented, "Foreclosures are on the rise again this quarter, as indicated by our latest foreclosure numbers. The number of new cases filed by lenders in the third quarter did rise just a small amount from the same period last year and actually dipped a bit quarterly – signs that the upward pattern may be easing. But foreclosure starts are nearly back to where they were two years ago when the federal government lifted a pandemic-related moratorium on most foreclosure filings. This rise in foreclosures might also be attributed to pending filings finally processing. Even with the national economic upturn and job stability, it’s evident that some homeowners are still grappling with the pandemic’s financial aftermath or encountering new challenges."

Among the 223 metropolitan statistical areas analyzed, those with the highest number of foreclosure starts in Q3 2023 were New York, New York (4,514 foreclosure starts); Chicago, Illinois (2,584 foreclosure starts); Houston, Texas (2,279 foreclosure starts); Los Angeles, California (2,273 foreclosure starts); and Philadelphia, Pennsylvania (2,104 foreclosure starts).

In contrast to the national trend, metropolitan areas with a population exceeding one million that witnessed a decline in foreclosure starts in Q3 2023 included Salt Lake City, Utah (down 74 percent); Chicago, Illinois (down 35 percent); Kansas City, Missouri (down 34 percent); Columbus, Ohio (down 22 percent); and Milwaukee, Wisconsin (down 21 percent).

The highest foreclosure rates in Q3 2023 were observed in New Jersey (one in every 595 housing units with a foreclosure filing); South Carolina (one in every 730); Delaware (one in every 739); Nevada (one in every 763); and Maryland (one in every 780).

Among the 223 metropolitan statistical areas analyzed, those with the highest foreclosure rates in Q3 2023 were Houston, Texas (one in every 371 housing units with a foreclosure filing); Atlantic City, New Jersey (one in every 453); Cleveland, Ohio (one in every 459); Bakersfield, California (one in every 465); and Columbia, South Carolina (one in every 503).

Read more: https://unusualwhales.com/news/the-number-of-homeowners-hit-with-foreclosure-notices-in-the-third-quarter-of-the-year-jumped-34-from-a-year-ago-to-nearly-125-000