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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 62 May 2024 J O U R N A L Q1 FORECLOSURE REPORT REVEALS A 'MARKET IN TRANSITION' A TTOM Data, a provider of all manors of real estate data, has released its Q1 Foreclosure Market Report which revealed that there was a total of 95,349 U.S. properties with foreclosure filings against them, down less than 1% year over year, but up 3% from Q4 of 2023. The report also shows a total of 32,878 U.S. properties with foreclosure filings in March 2024, down less than 1% from the previous month and down 10% from a year ago. "Q1 2024's foreclosure data reveals a market in transition, with slight increases in filings and starts, alongside a notable decrease in REO properties," explains Rob Barber, CEO at ATTOM. "While foreclosures remain relatively stable, we're closely monitoring these trends. Homeowners continue to hold signifi- cant equity, contributing to a persistently hot housing market." Foreclosure Starts Increase Nationwide Among all dwellings, a total of 65,657 properties started the foreclosure process during Q1 up 4% year over year, and up 2% from the previous quarter. States that had 100 or more fore- closures starts in Q1 2024 and saw the greatest quarterly increase included, New Hampshire (up 43%); Illinois (up 26%); Florida (up 22%); Rhode Island (up 21%); and Nevada (up 16%). Highest Foreclosure Rates Found in Delaware, New Jersey, and South Carolina Nationwide, one in every 1,478 hous- ing units had a foreclosure filing during Q1. States with the highest foreclosure Default Servicing rates were Delaware (one in every 894 housing units with a foreclosure filing); New Jersey (one in 919); South Carolina (one in 929); Nevada (one in 961); and Florida (one in 973). Among 224 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates during the first quarter of 2024 were Columbia, South Carolina (one in every 569 housing units); Spartanburg, South Carolina (one in 597); Lakeland, Florida (one in 624); Atlantic City, New Jersey (one in 628); and Cleveland, Ohio (one in 662). Bank Repossessions Increase 7% From Last Quarter Lenders repossessed 10,052 U.S. properties through foreclosure (REO) in Q1 2024, up 7% from the previous quarter but down 20% from a year ago. Those states that had the greatest number of REOs during the first quarter were Mich- igan (1,049 REOs); California (845 REOs); Pennsylvania (838 REOs); Illinois (810 REOs); and Texas (596 REOs). Average Time to Foreclose Increases 2% From Previous Quarter Properties foreclosed in Q1 2024 had been in the foreclosure process for an average of 736 days. While this marks a slight increase from the previous quarter, it represents a 20% decrease from the same time last year, continuing a downward trajectory observed since mid-2020. Average Days to Complete Foreclosure States with the longest average fore- closure timelines for homes foreclosed during the first quarter were Louisiana (2,641 days); Hawaii (2,031 days); New York (1,958 days); Nevada (1,701 days); and Kentucky (1,701 days). States with the shortest average foreclo- sure timelines for homes foreclosed during the first quarter were Montana (123 days); Virginia (152 days); Texas (163 days); Wyoming (191 days); and West Virginia (217 days). March 2024 Foreclosure Activity High-Level Takeaways: » Nationwide in March 2024, one in