April saw a surge in home foreclosures, with thousands of properties repossessed nationwide.
Last month saw an 8% increase in repossessions from the previous month, totaling over 2,900, despite a year-over-year decrease in foreclosure filings. States like Illinois, Pennsylvania, and California led with the highest numbers of completed foreclosures, highlighting regional disparities in economic recovery and housing stability.
According to foreclosure data tracked by ATTOM, Illinois led the states with 244 completed foreclosures, followed by Pennsylvania with 241 and California with 233. The numbers, albeit lower than the previous year, represent a rise over the prior month, suggesting that certain areas are still grappling with the economic aftershocks of recent years.
Foreclosure completions, or real estate-owned (REO) occurrences, are the final stage of the foreclosure process. At this stage, lenders repossess properties after the foreclosure auction fails to secure a buyer. The uptick is indicative of a market that, while recovering, still faces hurdles.
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For example, New York and Maryland also had many REOs, with 225 and 200, respectively, indicating ongoing stress in significant markets.
“April’s foreclosure numbers highlight a mixed landscape in the U.S. housing market,” noted Rob Barber, CEO at ATTOM. “While there is a general downtrend in foreclosure starts and filings, we have also seen an increase in completed foreclosures.”
New York City and Chicago, two of the largest urban economies in the U.S., led in foreclosure completions, signaling stress in traditionally robust housing markets. Baltimore, Washington, D.C., and Philadelphia were among the cities with higher foreclosure activities, reflecting broader economic pressures that challenge local housing stability.
Outside of foreclosure completions, ATTOM’s report shows that 31,649 properties faced foreclosure filings, a 4% decrease from the previous month and the same period last year.
The broader filings include default notices, scheduled auctions, and bank repossessions, capturing the full spectrum of foreclosure processes.
Those high rates reflect localized economic challenges related to job market fluctuations, regional economic policies, or other socioeconomic factors affecting homeowners’ ability to meet mortgage obligations.
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Elkhart, Indiana, for example, recorded the highest foreclosure rate among metro areas, with one in every 1,565 housing units undergoing foreclosure proceedings. Other places, like Columbia, South Carolina, and Cleveland, Ohio, also showed foreclosure activity.
Foreclosure Starts and Declines
While the overall number of foreclosure filings decreased, the initiation of foreclosure processes, or foreclosure starts, also declined by 7% from the previous month, totaling 21,753.
The decline in ‘starts’ is a positive sign, indicating fewer new cases entering the foreclosure pipeline. However, geographic disparities exist, with declines in states like New Jersey and Indiana contrasting with increases in states like Maryland and Oregon.
The increase in completed foreclosures and the decrease in new starts suggests that while fewer new cases are emerging, those already in the system are reaching completion.
“This mixed activity underscores the importance of closely monitoring these developments to understand the ongoing dynamics in the real estate market,” Barber said.
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This article Thousands Of U.S. Homes Foreclosed In April As Market Shows Mixed Recovery Signs originally appeared on Benzinga.com
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