During the housing market crash of 2009 there was a surge in foreclosures. Since then, foreclosures have been rare. Until last month.
ATTOM, a curator of real estate data, reports an 8% increase in foreclosure filings compared to the previous month, totaling 30,816 properties. While that’s a significant one-month jump, the company said the numbers reflect a 7% decrease from the same period last year, indicating a complex landscape for foreclosure activity as the year begins.
Rob Barber, CEO of ATTOM, commented on the findings, suggesting that the increase might partly be due to a post-holiday catch-up in filings.
"It's too early to know if 2025 will shift from the general 2024 trends of a continued decline in foreclosure activity,” Barber said in a press release. “We will keep a close eye on the market to see how interest rates, inflation, employment shifts, and other market dynamics impact foreclosures in 2025."
The report highlights a monthly increase in completed foreclosures (REO) in 30 states, with lenders repossessing 2,973 properties in January, marking a slight rise from the previous month but a significant 25% drop from the previous year. Notable increases in REOs were observed in Arizona (up 73%), Virginia (up 57%), and South Carolina (up 55%).
Cities with the most filings
Among metropolitan areas with populations over 200,000, Detroit led with 164 REOs, followed by Chicago and Riverside, Calif. The states with the highest foreclosure rates included Delaware, Nevada, and Indiana, with Delaware experiencing one foreclosure filing for every 1,839 housing units.
Foreclosure starts also saw an 8% increase from the previous month, with 20,994 properties entering the foreclosure process. However, this figure represents a 4% decrease from January 2024. Texas, California, and Florida led the nation in foreclosure starts, with significant activity also noted in major metropolitan areas like Chicago, New York, and Houston.
The foreclosures that caused the housing market crash were largely due to subprime mortgages and lax lending standards. It’s not clear what was behind January’s increase.