Home foreclosures in the U.S. are surging as the cost of living rises and incomes adjusted for inflation remain below pre-2020 levels. This is according to newly released information from the real estate data group ATTOM, known as the May 2023 U.S. Foreclosure Market Report.
According to this report, there were a total of 35,196 U.S. properties with foreclosure filings – either default notices, scheduled auctions or bank repossessions – in May. This is up seven percent from the previous month and up 14 percent year-over-year. (Related: Home prices DECLINE in 31% of the US, mostly in Democrat-controlled cities where crime and high taxation are rampant.)
Of these, lenders have begun the foreclosure process on 23,245 properties, up four percent from last month and five percent year-over-year.
Worse yet, lenders were able to complete the foreclosure process of 4,020 U.S. properties. This number represents a staggering 38 percent increase in homes repossessed compared to last month and 41 percent year-over-year.
"The recent increase in foreclosure filings nationwide indicates a trend that has been observed throughout the year, and what we have expected to occur," said ATTOM Chief Executive Officer Rob Barber. "This upward trajectory suggests the possibility of continued heightened activity, and with foreclosure completions seeing the largest monthly increase this year, we will continue to monitor the potential impacts this may have on the housing market."
ATTOM has attributed the rise in foreclosures to a variety of factors, most notable among them being how the income of working Americans remains well below their pre-pandemic highs, as what little they were able to make up in increases was swallowed up by inflation making the cost of consumer goods and services surging well beyond their ability to catch up. This decline in wages puts Americans at greater risk of falling behind on their payments, thus causing foreclosures to rise.
Blue states leading in foreclosure rates, completions
Florida had the most number of foreclosure filings started last month, with 2,901, followed closely by California's 2,451 foreclosure starts, Texas' 2,286, Illinois' 1,358 and New York's 1,287.
Of the country's major metropolitan areas, which ATTOM categorized as metros with more than a million residents, New York City had the most foreclosure starts with 1,452, followed by Chicago's 1,163, Houston's 811, Los Angeles' 700 and Philadelphia's 677.
Meanwhile, Illinois, Maryland and New Jersey led the country when taking into consideration the number of houses in each state and comparing those with the number of homes with foreclosure filings.
Nationwide, one in every 3,967 housing units had a foreclosure filing in May. Illinois had the highest rate, with one in every 2,144 housing units with a foreclosure filing. Illinois is followed by Maryland, with one in every 2,203 housing units and New Jersey, with one in 2,257 housing units.
Furthermore, metropolitan areas with the worst foreclosure rates include Cleveland's one in every 1,622 housing units, Jacksonville, Florida's one in every 1,699, Baltimore, Maryland's one in every 1,908, Chicago's one in every 1,991 and Orlando, Florida's one in every 2,049 housing units.
The states that had the largest number of foreclosure completions were Illinois with 352, Ohio with 279, Michigan with 271, Texas with 240 and Pennsylvania with 229.
Major metropolitan areas that saw the greatest number of foreclosure completions were New York City with 244, Chicago with 230, Detroit with 136, St. Louis, Missouri with 112 and Washington, D.C. with 91.
Learn more about the collapse of the American market at EconomicRiot.com.
Watch this episode of "World Alternative Media" as host Josh Sigurdson discusses the debt crisis affecting the housing market.
This video is from the World Alternative Media channel on Brighteon.com.
More related stories:
Unanimous Supreme Court rules county cannot steal equity in homes after sale for tax debt.
Government theft of home equity rooted in FEUDALISM, finance expert says.
Sources include:
Please contact us for more information.