Yellow Dog Productions/Getty Images
- Foreclosure filings climbed 22% in the first quarter compared to a year ago, analytics firm ATTOM said.
- Foreclosure activity has increased for 23 consecutive months after a federal moratorium was lifted.
- Meanwhile, repossessions hit the highest level in three years.
US foreclosure filings in the first quarter climbed 22% from a year ago, and repossessions rose by 6%, according to data from analytics company ATTOM.
Foreclosure activity has increased for 23 consecutive months after a federal moratorium was lifted, reaching 95,712 filings last quarter.
"This unfortunate trend can be attributed to a variety of factors, such as rising unemployment rates, foreclosure filings making their way through the pipeline after two years of government intervention, and other ongoing economic challenges," ATTOM CEO Rob Barber said in a statement. "However, with many homeowners still having significant home equity, that may help in keeping increased levels of foreclosure activity at bay."
During the pandemic, 2 million homes fell behind on mortgages, Bloomberg estimates. The CARES Act froze federally-backed home loans and helped troubled homeowners reduce mortgage payments. But it expired in mid-2021.
Now Illinois, Delaware and New Jersey are undergoing the highest foreclosure rates, ATTOM said. But while foreclosure rates are on a continued uptick, they are still significantly below historic levels.
Whereas 65,346 homes began the foreclosure process last quarter, that's well under the high of more than 500,000 in 2009.
Meanwhile, repossessions high a three-year high, according to ATTOM. Lenders repossessed 12,518 properties through foreclosure in the first quarter, up 8% from the previous quarter and up 6% from a year ago.
Michigan saw the highest number, followed by Illinois, California, Pennsylvania, and New York.
A separate report from Redfin on Wednesday pointed to other signs of weakness in the housing market. Median home prices in March dropped 3.3% annually, the biggest decline since 2012. Pandemic boomtowns and the San Francisco Bay Area led the price declines.