Foreclosure activity decreased in 2024
Atom‘S bankruptcy report at the end of 2024 revealed that last year, 322,103 properties in the US had some form of foreclosure filing filed – notices of default, scheduled auctions or bank repossessions. The data solutions company also reported that one in 1,671 properties had filed for bankruptcy in the fourth quarter of 2024.
Attom also noted that bankruptcy filings fell 10% from 2023, 1% from 2022, and 35% from pre-pandemic levels in 2019. Last year’s bankruptcies were also down 89 % down from a peak of nearly 2.9 million in 2010, as the housing market recovered from the Great Recession.
The 322,000 units marked in 2024 represented 0.23% of all U.S. housing, which is down slightly from 2023’s 0.25%.
“The continued decline in foreclosure activity through 2024 suggests that the housing market could stabilize even as economic uncertainties persist,” Rob Barber, CEO of Attom, said in a statement. “This year’s data indicates that foreclosure trends may be returning to more predictable levels, providing some clarity for industry professionals, investors and homeowners.
“While foreclosure filings remain a critical metric for understanding the health of the market, current trends may point to a more balanced landscape, potentially shaped by prudent lending practices and continued homeowner resilience.”
Lenders started the foreclosure process on 253,306 properties in 2024, down 6% from 2023. But the 2024 figure was 74% higher than 2021.
California saw the highest number of bankruptcies of any state at 29,529. It was followed by Florida (29,239) and Texas (28,946).
But Florida was the state with the highest foreclosure rate in 2024, as one in 267 homes filed. It was closely followed by New Jersey, Nevada, Illinois and South Carolina.
Lenders seized 36,505 properties through foreclosures (REOs) in 2024, down 13% from 2023. Last year’s REO reading was down 97% from a peak of more than 1 million in 2010 after the Great Recession.
The average time to execution decreased between the third and fourth quarters, but increased year-on-year in 2024. US properties foreclosed in the fourth quarter of 2024 had already been pending for an average of 762 days, a decrease of 6% from the previous quarter, but a 6% increase from a year ago.
