Enforcement activities decreased 44% in the first half of 2020 compared to the same period in 2019 and 54% compared to the previous year. However, according to Attom Data Solutions, this could fluctuate upwards after the moratorium is lifted.
With only 165,530 foreclosed properties, the first half of the year had the lowest number of such cases over a six-month period since Attom began tracking this data in 2005. A total of 0.12% of all US real estate, or one in 824, was filed in first half of 2020. Foreclosures peaked in 2010 when the rate reached 2.23%.
"The residential property foreclosure market across the country continues to shrink under a combination of booming real estate market conditions ahead of the current coronavirus pandemic and a moratorium on activities as the country struggles to overcome the crisis," said Ohan Antebian, General manager of RealtyTrac, a foreclosure listing portal and subsidization from Attom Data Solutions, said in a press release.
"The beginning and end of foreclosures were rapidly declining last year because the real estate market and the economy were so high. Now they have dropped to lows that have not been seen for at least 15 years because the federal government has banned lenders, pursuing most criminal loans by then, at least in late August 2020, to help people weather the pandemic, "added Antebian.
The 17,913 properties in California and the 28 foreclosed homes in South Dakota form the opposite ends of the spectrum in the state-to-state analysis. In terms of rates, Delaware was highest at 0.28%, followed by 0.25% in New Jersey and 0.24% in Illinois. South Dakota's 0.01% was the lowest, falling just short of 0.02% in both North Dakota and Montana. No country saw a year-on-year rate increase.
Across the board, foreclosures rose in 10 of the 220 property markets with at least 200,000 residents year on year, led by jumps of 161% in Stockton, California, 61% in Chico, California, and 42% in McAllen, Texas. The highest foreclosure rates by metro area were 0.37% in Peoria, Illinois, and 0.36% in Trenton, New Jersey, and Rockford, Illinois.
"There is almost a guarantee that distressed real estate will increase significantly after the moratorium is lifted as millions of Americans missed their mortgage payments in June and will continue to do so due to unemployment," said Antebian. "But at the moment everything is on hold and the foreclosure numbers reflect this break."
Banks recaptured 37,917 properties through foreclosure in the first six months of 2020. The total decreased 44% compared to 2019 and also marks the lowest half-year period since the start of tracking.
"There are 32 million people in some form of unemployment insurance. We expect an unemployment rate between 8.5% and 9% by the end of this year and around 7% by the end of 2021," said Doug Duncan, SVP and chief economist at Fannie Mae, said in one Interview. "The ability of households to recover depends on the pace at which the economy is rebuilding jobs and income. The longer the household is neglected, the greater the likelihood that they will need training like a loan change Time is often the enemy in the mortgage sector to get things up to date. "