25 Foreclosure Statistics For 2024 [The Figures of Crisis?]

Understanding the world of real estate can often feel like navigating a maze, with many twists and turns to consider.

But becoming informed about critical issues like foreclosure is crucial. You may not realize it, but foreclosure rates and practices significantly impact the real estate market and the economy.

This article aims to shed light on this vital issue by presenting foreclosure statistics to help you better grasp the scope and nature of foreclosures in America.

By understanding these stats, you'll be better equipped to make informed decisions about your property, investments, or even your understanding of the housing market climate.

25 Foreclosure Statistics

The world of real estate might seem confusing and complex. However, with access to the right information, you can easily navigate it.

You need concise yet critical data that clearly shows the current market scenario. This is where we help by offering an infographic snapshot of 25 crucial foreclosure statistics.

There were 65,082 U.S. properties with foreclosure filings in the first six months of 2021.

In the first half of 2021 alone, 65,082 U.S. properties entered into foreclosure proceedings.

This number represents houses that have entered the legal process set in place due to non-payment of mortgage debt, where property owners risk losing their homes to their lenders.

It paints a sad picture of individual homeowners at risk and reflects the intensity of financial distress on overall regional and national levels.

This figure is down 61% from the same period a year ago and down 78% from two years ago.

On an encouraging note, these figures represent a significant decrease compared to previous years' data.

Marching towards recovery, the US real estate market has seen these foreclosure figures fall by 61% compared to numbers around this time last year and, even more impressively, down by approximately 78% compared to this period two years ago.

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Properties foreclosed in Q2 2023 had been in foreclosure for an average of 1,212 days.

You must be wondering what is implied by the foreclosure process. The term refers to the legal proceedings that begin when borrowers fail to meet their mortgage payment obligations.

It culminates ultimately in the lender reclaiming ownership of the property. According to our data from Q2 2023, properties had been lingering within this foreclosure process for an average of 1,212 days.

What does this mean? It signifies that most homeowners spent over three years grappling with financial trouble before losing ownership. This lengthy time frame can lead to personal distress and to stagnation in real estate market activity.

Only 5 of the 220 metro areas analyzed in the report saw an increase in foreclosure activity compared to a year ago.

Is every region witnessing a reduction in foreclosures? Looking at our statistics, it surprisingly isn’t the case. While nationwide reductions inspire optimism, it’s not uniformly applicable to individual metro areas.

Our report analyzed data from 220 prominent metro areas and found an unexpected pattern—only 5 out of these witnessed an increase in foreclosure activity compared to last year's data.

This finding sheds light on regional variations in economic recovery and indicates that challenges persist amid otherwise encouraging national trends.

California, Florida, Texas, New York, and Illinois had the most significant number of foreclosure starts in the first half of 2023.

Foreclosure starts refer directly to initiations of new foreclosure proceedings—indicating new instances of property owners defaulting on their mortgage payments.

Turning attention towards regional analysis again—in H1 2023, California, Florida, Texas, New York, and Illinois emerged as states with the most dismal initiations.

This data hints at localized economic issues potentially precipitating homeowner distress, including job loss or wages falling behind living costs, which might be factors contributing disproportionately higher rates amongst these states.

Delaware, Illinois, and Florida posted the highest state foreclosure rates.

Delaware, Illinois, and Florida have the dubious distinction of leading the nation in foreclosure rates.

These figures are representative not only of real estate prices but also of broader socioeconomic factors affecting these states. While regional economies struggle, the repercussions are evident in high foreclosure rates.

This impact is further compounded by the challenges that COVID-19 presented, causing increases in job loss and financial duress, leading to an inability to manage mortgage payments.

Nationwide, 0.05% of all housing units had a foreclosure filing in the first half of 2021.

While percentages can often sound minimal and inconsequential, this is quite significant when equated to foreclosure filings.

At a national level, 0.05% of all housing units had received notices for foreclosures in just the first half of 2021 alone.

While it's encouraging that this figure isn't higher in light of the pandemic's impact on employment and income levels, even these relatively low numbers translate into tens of thousands of families facing financial hardship.

Nationwide, in June 2023, one in every 3,972 properties had a foreclosure filing.

Consider this - one in every 3,972 U.S. properties had a foreclosure filing nationwide in June alone.

Despite measures put into place for relief assistance due to COVID-19-related effects across the US - many property owners faced severe challenges making mortgage payments up to mid-2023.

This critical statistic underscores how common foreclosures have become during pandemic times, indicating financial hardship at national and individual homeowner levels.

Lake Havasu, Arizona, had the highest metro foreclosure rates.

Despite the overall decrease in national foreclosure numbers, there are still areas where foreclosures have significantly increased.

One such city is Lake Havasu, Arizona. The metropolitan area of Lake Havasu City-Kingman experienced the highest metro foreclosure rates in the country.

This unfortunate reality is a stark reminder that while nationwide averages indicate progress, many homeowners still grapple with foreclosure's challenges.

36,742 U.S. properties started foreclosure in the first six months of 2021.

The first half of 2021 saw 36,742 U.S. properties enter the distressing foreclosure process—an ordeal no homeowner wants to endure.

This critical statistic provides an up-to-the-minute snapshot for anyone tracking real estate trends, both on micro and macro levels, offering insights into patterns that impact market conditions and investment decisions.

Nationwide, 0.13% of all housing units had a foreclosure filing in the first half of 2023.

Although it may appear as a small figure at face value, 0.13% paints a significant picture when considering it accounts for all housing units throughout America's vast expanse.

A sobering insight from this statistic demonstrates that even after escaping the worst pain points of vast economic downturns or recessions, their rippling effects continue to shake seemingly steadfast economic structures such as real estate with persistent foreclosures.

This is down 63% from the first half of last year but up 14% from the last half of 2020.

The country witnessed a dramatic decline in foreclosure figures from the first half of last year to late 2020, with numbers dwindling by an impressive 63%.

As markets began to pulse with life again in late 2020, we experienced a small bump in foreclosures, with them hiking up by approximately 14%.

While it might appear alarming, these figures represent regrowth and dynamic movement within the real estate market.

The national foreclosure activity total in Q2 2023 was 65% below the pre-recession average.

Interestingly, despite minor fluctuations, there's a silver lining. When foreclosure activities are examined from a wider angle, they've nosedived significantly under traditional averages before major recessions.

In the second quarter of 2023 alone, foreclosure actively dropped to a low of 65% less than the pre-recession average.

This doesn't mean incidences aren’t occurring— markets experience natural ups and downs— but it does indicate that perhaps lessons have been learned from past recession events.

Lenders foreclosed on 9,730 U.S. properties in the first six months of 2021.

Lenders ultimately possessed a staggering 9,730 U.S. properties due to non-payment and completion of the foreclosure process through June 2021.

Though this seems an uncomfortably high number at first glance and suggests homeowners' financial distress, it's important to consider the context.

This represents just a small fraction of all housing units spread across ~330 million American residents. Each one tells its own story but contributes to making sense of patterns.

This is down 74% from a year ago to the lowest six-month total since tracking began in 2005.

To put things in perspective, not only has there been a substantial drop in foreclosure filings from the previous year, but when compared to historical data, we see an even more significant downward shift.

A 74% decrease from a year ago brings us to the lowest figure recorded for six months since record-keeping commenced in 2005. This decline represents significant progress in the real estate market and illustrates improved financial situations for many homeowners.

There were 33,964 U.S. properties with foreclosure filings in Q2 2021.

Regarding quarterly figures, the database reports reveal that the second quarter of the year (April-June) saw foreclosure filings for about 33,964 U.S. properties.

These filings indicate homes legally designated as being on track for possible repossession due to missed mortgage payments.

It provides a snapshot of how many homeowners grappled with daunting financial challenges during this period.

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This is up less than 1% from the previous quarter and 11% from a year ago.

While long-term trends show declining foreclosures overall, it deserves noting that short-term data can reflect minor fluctuations.

In this case, compared to Q1 of 2021, there was a modest increase of less than 1%. Regrettably but importantly, an uptick is also observable when comparing this quarter to Q2 of its preceding year - an increase of 11% was documented.

While steady long-term recovery looks promising, short-term variations call for observation and remain crucial considering present market dynamics.

The national foreclosure activity total in Q2 2021 was 88% below the pre-recession average of 278,912 per quarter from Q1 2006 to Q3 2007.

Foreclosure statistics in the United States reveal a significant decline compared to pre-recession averages.

Foreclosure numbers documented in Q2 of 2021 fell dramatically, ringing in at an astounding 88% below the average between Q1 2006 and Q3 2007 - a period of notable recessive economic conditions.

To put a number to it, substantially fewer foreclosures were taking place, down from the quarterly pre-recession norm of about 278,912 incidences.

Properties foreclosed in Q2 2021 took an average of 922 days from the first public foreclosure notice to complete the foreclosure process.

When we delve deeper into these statistics, it's interesting to note that properties moving into foreclosure proceedings during Q2 of 2021 took an average span of 922 days - roughly two and a half years - from the initial public notice announcing potential foreclosure up until completion of the official process.

This timeline allows us to understand how long homeowners potentially have to rectify financial issues before losing their homes and how lengthy and bureaucratic procedures can enable such situations to drag on for extended periods.

Hawaii had the longest average foreclosure timelines for foreclosures completed in Q2 2021.

Speckling these national averages are state-specific variances worth noting. It turns out that Hawaii was known for having notably lengthy timelines for their foreclosure proceedings within this time window.

On average, properties located in Hawaii claimed some of the longest periods seen throughout this quarter, landing higher than most other states across America while navigating through complex legal systems and perhaps uniquely local issues tied to these types of real estate events.

Wyoming had the shortest average foreclosure timelines for foreclosures completed in Q2 2021.

If you're hoping for a quick resolution to foreclosure woes, Wyoming might be the best place to be.

Compared to other states, Wyoming seems to handle foreclosures with greater efficiency. In the second quarter of 2021, it boasted the shortest average foreclosure timeframes nationwide.

In layman's terms, the process from filing for foreclosure to its ultimate completion tends to wrap up more swiftly in Wyoming than in any other state.

This statistic illustrates the imbalances within our national system and prompts discussion about why such disparities exist among states in property law and lender practices.

In June 2021, one in every 10,547 properties had a foreclosure filing.

Imagine being in an arena filled with around 10,547 houses. Now, picture one house right smack dab in the middle with a massive foreclosure label posted on it.

That distressing scene gives you an idea of the overall U.S. landscape in June 2021 concerning foreclosures.

For every block of that many homes nationwide, at least one was filing for foreclosure – a severe marker of fiscal hardship faced by households amid economic pressures.

Nevada had the highest foreclosure rates in June 2021.

Switching gears to specific geographic areas – if there were such a thing as 'Foreclosure Central,' it would potentially have been titled as Nevada back in June 2021.

Despite significant efforts towards economic recovery from numerous financial shocks over the years past, Nevada's housing market seems to struggle with managing these pressures adequately.

The headache of foreclosure was most prevalent here compared to all other states that month - certainly not an envious title when illustrating how persistently some regions still grapple with financial instability reflected most harshly through their residents' inability to sustain mortgage payments.

6,826 U.S. properties started the foreclosure process in June 2021.

As we delve deeper into the specifics of single months, you might note a heightened flux that underlines the real estate market's dynamic nature. For instance, in June 2021 alone, 6,826 U.S. properties began facing a foreclosure process.

This drumbeat of individual distress signals projects an image of financial hardships endured by numerous homeowners who started grappling with the risk of foreclosure within just this month.

Lenders completed the foreclosure process on 2,311 U.S. properties in June 2021.

Its conclusion is completing the circle of distress that starts with a foreclosure process initiation. In this scenario, lenders make the final move to repossess properties due to continued non-payment.

In June 2021, lenders took over 2,311 U.S. properties, formally ending their patience for home loan repayments and throwing a shadowy side of home ownership into sharp relief that could easily be overlooked amidst success stories within this sphere.

FAQs About foreclosure statistics

Conclusion

Understanding foreclosure statistics is imperative for both homeowners and prospective property buyers alike.

Such insights can shed light on the general health of the real estate market, displaying trends that influence not just individual homeowners but also lenders and investors.

Whether you're looking to invest in a property for the first time or trying to keep your existing home out of foreclosure, staying aware of these figures helps you stay abreast of market dynamics, thus enabling more brilliant, more informed decisions. Remember - knowledge is power when navigating the complex landscape of real estate.