DS News recently reported on the spike in foreclosures observed in the month of October based off data from the ATTOM Data Solutions Foreclosure Market Report. Although foreclosures have decreased across every metric measured by the industry compared to the prior year, the report showed increases in these same measurements month-over-month. In addition to the increases felt nationally, on a state level increases in foreclosures where experienced comparatively from the previous month and year-over-year.
“While some states are still slogging through the remnants of the last housing crisis, the foreclosure activity increases in states such as Arizona, Colorado, and Georgia are more heavily tied to loans originated since 2009—after most of the risky lending fueling the last housing boom had stopped,” said Daren Blomquist, SVP at ATTOM Data Solutions in the report. “The increase in October isn’t enough evidence to indicate a new foreclosure crisis emerging in these states, but it certainly demonstrates that this housing recovery is not completely devoid of risk.
But which states experienced the increase the most, and which states are still struggling with high levels of foreclosure filings?
According to the report, states such as Delaware, New Jersey, and Florida ranked among the states with the highest number of foreclosures all for various reasons. Delaware specifically doubled the number of housing units with a foreclosure filing from one in every 680 units in September to one in every 355.
Additionally, Florida’s foreclosure filings rose from the month prior with one in every 950 units growing to one in every 895.
“We would expect to see an increase in Florida foreclosure activity in the coming months given the October ruling by the state Supreme Court there that allows lenders to re-file a foreclosure action against a homeowner in default even if a previous foreclosure case against that homeowner was dismissed and that original foreclosure case was filed more than five years ago, outside the state’s statute of limitations for foreclosure,” said Blomquist.