The rate of foreclosures fell substantially in 2016, hitting a ten-year,
nationwide-low based on the annual Foreclosure Market Report circulated
by property database ATTOM Data Solutions. ATTOM’s annual foreclosure
study is compiled from data garnered through publicly available financial
documentation and is a detailed analysis of all properties that were in
some state of the foreclosure process over the past year.
The collective total of foreclosure applications, default notifications,
auctioned properties and creditor repossessions amounted to 933,045 instances
occurring in 2016. This figure represents a 14% drop over last year and
the lowest since 2006’s 717,522 filings.
The report further revealed that 0.7 percent of all U.S. homes had at least
a single foreclosure proceeding in 2016. This was also the lowest on record
since 2006, when the level was at .58 percent.
The ATTOM statistics indicate filings to initiate foreclosure fell 17%
from December 2015 to December 2016, and that the 85,919 December foreclosure
filings were a 1 percent drop from the previous month. These figures represent
a fifteen-month streak in which foreclosure activity decreased month over
month from the last year.
The aggregate foreclosure rate for the entire United States remained within
what market experts consider “historically normal ranges”
between 2013 and 2016, despite the fact that financial institutions were
attempting to resolve foreclosures remaining from the 2008 housing meltdown—especially
during the last quarter of the year.
The foreclosure proceedings closed in the fourth quarter had been outstanding
for an average of 803 days, which is a significant 29% jump from the number
of foreclosures completed in the third quarter and 27% over the preceding
year. The 803-day so-called “legacy” foreclosure timeline
for 2016 is the longest since ATTOM began analyzing data in the first
quarter of 2007.
According to Daren Blomquist, ATTOM Data Solutions senior vice president,
this delay can be attributed to the banks’ efforts to settle a substantial
amount of legacy foreclosures remaining on their ledgers during the year-end quarter.
The ATTOM data also indicates that over 50% of all remaining foreclosures
in the United States are associated with loans that were issued between
2004 and 2008, during the height of the housing boom. The rate of these
legacy foreclosure proceedings changed significantly across various geographical
markets. While foreclosure proceedings continued to decline regarding
the nationwide average, twelve states experienced a substantial increase.
For example, Delaware saw a 45% increase in foreclosure activity, Rhode
Island a 29% rise, Massachusetts and Connecticut were both up by 21%,
and Hawaii rose by 20 percent.
Read more about the author, NemaDaghbandan by reading his bio.