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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 72 February 2024 J O U R N A L New Jersey, Illinois, and Delaware Posted the Highest State Foreclosure Rates in 2023 States with the highest foreclosure rates in 2023 were: 1. New Jersey (0.46% of housing units with a foreclosure filing) 2. Illinois (0.42%) 3. Delaware (0.41%) 4. Maryland (0.40%) 5. Ohio (0.38%) Rounding out the top 10 states with the highest foreclosure rates in 2023 were South Carolina (0.38%), Nevada (0.37%), Florida (0.37%), Connecticut (0.35%), and Indiana (0.32%). Cleveland, Atlantic City, and Lakeland Posted the Highest Metro Foreclosure Rates in 2023 Among 223 metropolitan statisti- cal areas with a population of at least 200,000, those with the highest foreclo- sure rates in 2023 were: 1. Cleveland (0.62% of housing units with a foreclosure filing) 2. Atlantic City, New Jersey (0.62%) 3. Lakeland, Florida (0.56%) 4. Columbia, South Carolina (0.55%) 5. Fayetteville, North Carolina (0.51%) Metro areas with a population greater than 1 million, including Cleveland, Ohio, that had the highest foreclosure rates in 2023 were: Philadelphia, Pennsylvania (0.48%); Jacksonville, Florida (0.47%); Las Vegas (0.46%); and Chicago (0.45%). The Average Time to Foreclose Decreases Quarterly, Annually Overall, U.S. properties foreclosed in Q4 of 2023 had been in the foreclosure process for an average of 720 days, a 7% decrease from the previous quarter and a 16% decrease from a year ago. States with the longest average time to foreclose in Q4 2023 were Louisiana (2,641 days), Hawaii (2,031 days), New York (2,006 days), Nevada (1,816 days), and Kentucky (1,643 days). COMMERCIAL PROPERTY DELINQUENCIES JUMPED IN Q4 A ccording to the Mortgage Bankers Association's (MBA) latest com- mercial real estate finance (CREF) Loan Performance Survey, delinquency rates for mortgages backed by commercial properties increased during Q4 2023. "Ongoing challenges in commercial real estate markets pushed the delin- quency rate on CRE-backed loans higher in the final three months of 2023," said Jamie Woodwell, MBA's Head of Com- mercial Real Estate Research. "Delin- quency rates jumped to 6.5% of balances for loans backed by office properties, and to 6.1% for lodging-backed loans. Delinquencies for loans backed by retail properties remain elevated from the on- set of the pandemic but were unchanged during the quarter. Delinquency rates for multifamily and industrial property loans both increased marginally but remain much lower." The balance of commercial mortgages that are not current increased in Decem- ber 2023 (compared to September 2023): » 96.8% of outstanding loan balances were current or less than 30 days late at the end of Q3, down from 97.3% at the end of Q3 2023. "Reflecting on 2023, we see the recent rise in foreclosure activity as a market correction rather than a cause for alarm. It signals a return to more traditional patterns after years of volatility." —Rob Barber, CEO, ATTOM