Foreclosure Statistics

Foreclosure Statistics 2021-2020, Facts Data and Trends

home foreclosure statistics 2021-2022

When we think about foreclosure, we may associate it with things like stress and financial difficulty. The 2008 financial fiasco proved how stressful and disappointing foreclosure could be for everyone. However, the rate of foreclosure actually became lower and lower after the financial crisis ended.

Now that the pandemic has hit the whole world, we’re once again seeing changes in foreclosure rates. Look at the foreclosure statistics below to see how they’ll affect the future:

  1. In 2020, there were 214,323 active foreclosure cases.
  2. Foreclosure activity was 90% lower in 2020 and year-over-year.
  3. Foreclosure rates could increase by over 100% without the moratoriums. Source
  4. It now takes an average of 830 days to foreclose.
  5. Active foreclosures that are in the auction stage are at 46.7%.
  6. In the third quarter of 2020, mortgage debt reached $9.86 trillion.
  7. The foreclosure rate in the US is 1 in every 12,001 housing units.
  8. The foreclosure rate reached its peak in 2010 at 2.23%.
  9. In February 2020, lenders reacquired 10,469 properties.

1. In 2020, there were 214,323 active foreclosure cases.

According to ATTOM Data Solutions, 2020 ended with 214,323 foreclosures. This means that the number of foreclosure cases was at its lowest in 16 years. Compared to the previous year, this is 57% lower. It is also over 10 times less than the peak of about 2.9 million in 2010. As the figures show, foreclosure rates are better than they were in 2005, particularly before the recession.

2. Foreclosure activity was 90% lower in 2020 and year-over-year.

According to The Motley Fool, foreclosure activity is still low despite 3.4 million delinquent mortgages for over 90 days. These foreclosure statistics demonstrate that moratoriums set by federal and state agencies help people find ways not to lose their homes.

3. Foreclosure rates could increase by over 100% without the moratoriums.

ATTOM Data Solutions also noted that without the moratoriums in place, foreclosure cases could be higher by over 100%. Without protection from the CARES act, mortgage foreclosures could double from the first to the second quarter of 2021. The most affected states would most likely include Massachusetts, California, and Colorado.

4. Foreclosure now takes an average of 830 days.

Foreclosure statistics from ATTOM Data Solutions also show that the average time spent on foreclosure is increasing, at an average of 830 days. Compared to the previous quarter, this is 21% higher. However, compared to the previous year, this is a bit lower.

Foreclosure processes are generally longer. This trend suggests that lenders can now tolerate longer grace periods, giving borrowers more time to save their homes and manage their expenses.

5. Active foreclosures that are in the auction stage are at 46.7%.

According to RealtyTrac, 46.7% of all active foreclosure cases are already in the auction stage. These foreclosure statistics suggest that from all foreclosure cases in December 2020, 18.1% of them were settled, with the ownership returned to the lender. Meanwhile, the other 35.2% are still undergoing the pre-foreclosure stage.

6. In the third quarter of 2020, mortgage debt reached $9.86 trillion.

According to Investopedia, mortgage debt closed at $9.86 trillion in the third quarter last year. While everyone wants to buy a new home without worrying about mortgage payments, only a few people have the means. That is why 63% of Americans had to borrow money for their new homes. So, while mortgage debt had been going down until 2013, numbers have started picking up again.

7. The foreclosure rate in the US is 1 in every 12,001 housing units.

According to RealtyTrac, 1 in every 12,001 housing units in the United States is facing foreclosure. In Utah, the ratio is 1 in every 3,738 housing units. In Delaware, it’s 1 in every 5,102 housing units. Lastly, in Louisiana, the foreclosure rate is 1 in every 7,812 housing units.

8. The foreclosure rate reached its peak in 2010 at 2.23%.

According to Statista, foreclosure had the highest rate in 2010, just years after the financial crisis from 2007 to 2009. Since 2011, the rate has consistently decreased. In 2019, the share of housing units with a foreclosure filing was 0.36%. Although the foreclosure rate in 2018 was low, 10% of mortgage holders feared that their homes would be foreclosed.

9. In February 2020, lenders reacquired 10,469 properties.

ATTOM Data Solutions reported that since 2005, this is the lowest number of total house foreclosures. The figures are expected to go down even more given that banks are issuing a moratorium on foreclosure and eviction cases because of the COVID-19 pandemic.

Foreclosure Statistics: Stay in the Know

Overall, the foreclosure statistics look promising, and numbers continue to go down despite the pandemic. However, factors like moratoriums and other working policies contribute to such decline. Everyone should prepare for when these protections no longer take effect and how the economy will manage the expected increase in foreclosure. Visit our page to discover more interesting stats!

Sources:

  1. https://spendmenot.com/blog/foreclosure-statistics/#:~:text=1%20in%2012%2C448%20properties%20in,an%20average%20of%20830%20days
  2. https://www.realtytrac.com/statsandtrends/foreclosuretrends/
  3. https://www.realtytrac.com/statsandtrends/foreclosuretrends/ga/fulton-county/atlanta/
  4. https://www.statista.com/statistics/798766/foreclosure-rate-usa/
  5. https://www.attomdata.com/news/market-trends/foreclosures/attom-data-solutions-august-2020-u-s-foreclosure-market-report/
  6. https://www.prnewswire.com/news-releases/165-530-us-properties-with-foreclosure-filings-in-first-six-months-of-2020–hit-all-time-low-301094464.html
  7. https://www.prnewswire.com/news-releases/q3-2020-us-foreclosure-activity-reaches-historical-lows-as-the-foreclosure-moratorium-stalls-filings-301152838.html
  8. https://capitalcounselor.com/foreclosure-statistics/