{"id":2917,"date":"2023-07-25T03:44:57","date_gmt":"2023-07-25T03:44:57","guid":{"rendered":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/2023\/07\/25\/foreclosure-rates-are-surging-these-10-u-s-cities-are-where-theyre-up-the-most\/"},"modified":"2023-07-25T03:44:57","modified_gmt":"2023-07-25T03:44:57","slug":"foreclosure-rates-are-surging-these-10-u-s-cities-are-where-theyre-up-the-most","status":"publish","type":"post","link":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/2023\/07\/25\/foreclosure-rates-are-surging-these-10-u-s-cities-are-where-theyre-up-the-most\/","title":{"rendered":"Foreclosure Rates Are Surging: These 10 U.S. Cities Are Where They\u2019re Up the Most"},"content":{"rendered":"

<\/a><\/p>\n

Realtor.com \/ Getty Images<\/p>\n

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Foreclosures in America are on the rise for the second year in a row. This puts a firm bookend on an 11-year decline in the forced repossession or sale of a home when a homeowner can\u2019t pay the mortgage.<\/p>\n

But let\u2019s take a deep breath: The current rise in foreclosure activity is not uniform across the country. Even more than 15 years ago, when the bottom fell out of the housing market, there are more distressed properties in some areas than others. That\u2019s why the data team at Realtor.com\u00ae went out to find which places are experiencing high\u2014and growing\u2014percentages of foreclosure filings.<\/p>\n

However, before anyone panics, there is no wave of foreclosures threatening to wash across the country, bringing down home values like the epic crash that occurred during the Great Recession. And the foreclosed properties that do make it onto the market will likely be snapped up quickly by buyers frustrated by high prices and the lack of homes for sale.<\/p>\n

In June, roughly 2.5 out of every 10,000 homes had a distressed property or foreclosure filing, according to data provided by ATTOM<\/a>, a real estate data clearinghouse. In the first six months of 2023, the total of homes receiving a foreclosure filing was just under 186,000. In the years around the housing recession of the late 2000s, about 15 times as many borrowers were going through foreclosure.<\/p>\n

The current increase<\/a> is likely due to the pause in foreclosure activity during the COVID-19 pandemic, says Geoff<\/strong> Walsh<\/strong>, a staff attorney at the National Consumer Law Center<\/a>.<\/p>\n

Today\u2019s rise in foreclosure filings is now catching up with borrowers who might have otherwise already been foreclosed on months or years ago.<\/p>\n

We found the current foreclosure rate is highest (and climbing) in several medium-sized metros, scattered across the Southeast and Northeast. One factor that can sneak up on homeowners is rising property tax assessments, in the wake of the breakneck pace of home value increases of the past few years.<\/p>\n

\u201cAs property values have exploded in some areas,\u201d says Hannah Jones<\/strong>, an economic research analyst at Realtor.com, \u201cproperty taxes have as well.\u201d<\/p>\n

In Austin, where Jones lives, a friend\u2019s property tax bill rose $700 per month.<\/p>\n

\u201cIt can make these homes unaffordable even if the owner has a low mortgage rate,\u201d says Jones.<\/p>\n

And a rising tax bill is just one cost of living crunch among others, as inflation has meant soaring grocery and gas bills in recent years. All of it squeezes homeowners\u2019 budgets.<\/p>\n

However, those same rising property values provide struggling homeowners with a measure of protection. If they can\u2019t make their mortgage payments, they can put their homes up for sale. And in many cases, they are able to walk away from the sale with a profit.<\/p>\n

To make some sense of what\u2019s going on with foreclosures, we ranked metropolitan areas with high and growing foreclosure rates by comparing June 2023 ATTOM data to May 2023 and June 2022 to see where the foreclosure rate is rising month over month and year over year. Then we ranked these metros based on the current foreclosure rate. We selected only one metro per state.<\/p>\n

Foreclosure filings include default, lis pendens, trustee sale, foreclosure sale, and real estate-owned notices.<\/p>\n

<\/div>\n

Here are the places with high and growing foreclosure filing rates.<\/p>\n\n

1. Atlantic City, NJ<\/a><\/h2>\n

Median list price: $392,450
\nJune foreclosure filings per 10,000 housing units: 6.8<\/p>\n

Atlantic City, an iconic beach town renowned for its casinos and boardwalk (one of the longest in the world) as well as its infamous role in Prohibition-era bootlegging, has nearly 7 out of every 10,000 housing units facing foreclosure. This isn\u2019t new for the area, which struggled with foreclosures after the housing bubble burst.<\/p>\n

According to David Fiorenza<\/strong>, an economics professor at Villanova University, the rise in distressed properties here is partly due to a hangover from the COVID-19 stimulus package that helped pr0p up the local economy.<\/p>\n

\u201cYou had the ARPA money propping up the finances of these local governments,\u201d Fiorenza says of the American Rescue Plan Act of 2021<\/a>. \u201cThey used it for infrastructure, like roads and highways, and they bought police cars and firetrucks. Those things are good, but now these governments are catching up.\u201d<\/p>\n

That means more tax revenue is needed\u2014which can show up in the form of higher property taxes. Exacerbating the problem, the city has a higher-than-average poverty and unemployment rate.<\/p>\n

Atlantic City has long been marked by economic swings, Fiorenza says, with the gaming and entertainment industries largely dictating the health of the local economy.<\/p>\n

It\u2019s been an especially wild roller coaster in the past few years, he says, with casinos closing and reopening. It can have the downstream effect of homeowners not keeping up with their mortgages.<\/p>\n

\u201cI don\u2019t think anyone saw this coming,\u201d he says. \u201cI didn\u2019t.\u201d<\/p>\n

2. Florence, SC<\/a><\/h2>\n

Median list price: $273,950
\nJune foreclosure filings per 10,000 housing units: 6<\/p>\n

Florence, located in the northeastern part of South Carolina about an hour east of the capital city of Columbia, is in an area called \u201cPee Dee,\u201d after the Pee Dee River that flows through the Carolinas\u2019 Appalachian range.<\/p>\n

The housing stock in Florence is mostly single-family homes, predominantly ranches and two-story units. A bonus for buyers is homes here are priced well below the national average of $445,000 in June.<\/p>\n

At 6 foreclosures for every 10,000 homes, the rate in the Florence metro is about 2.5 times the national average. And it\u2019s been rising, up 15% since the same time last year.<\/p>\n

For homebuyers, it means there are deals to be had. For just $55,000, home shoppers can get a four-bedroom foreclosed home<\/a> in the Florence area.<\/p>\n

3. New Haven, CT<\/a><\/h2>\n

New Haven, CT.<\/p>\n

Getty Images<\/p>\n

Median list price: $424,850
\nJune foreclosure filings per 10,000 housing units: 5.6<\/p>\n

Connecticut has been on a tear the past few years, with many of the Nutmeg State\u2019s population hubs included in our hottest markets<\/a>\u00a0lists\u2014New Haven included.<\/p>\n

The area is home to Yale University and prides itself on its clam pizza, but the city and state are also known for high property taxes.<\/p>\n

With a rate of foreclosures per 10,000 homes ticking up from 3 last year to 4 in May, before hitting 5.6 in June, the area is definitely seeing a rise and now has more than the national average.<\/p>\n

4. Baltimore, MD<\/a><\/h2>\n

Baltimore, MD<\/p>\n

Getty Images<\/p>\n

Median list price: $365,875
\nJune foreclosure filings per 10,000 housing units: 5.5<\/p>\n

Baltimore was no stranger to the foreclosure crisis plaguing the nation about 15 years ago. Now, the city\u2019s back in the spotlight for its distressed properties.<\/p>\n

The biggest increase in year-over-year foreclosures of any place on our list is Baltimore. This iconic maritime city, known for its distinctive row houses, has seen its foreclosures nearly quintuple<\/em> in a year.<\/p>\n

In June of this year, the ATTOM data shows, the Baltimore metro area, which includes nearby Columbia<\/a>\u00a0and Towson<\/a> and has nearly 3 million residents, had 655 homes facing some kind of foreclosure filing. That figure was just 136 in June 2022.<\/p>\n

This three-bedroom townhome<\/a> in the Pen Lucy neighborhood is in foreclosure and listed for $100,000.<\/p>\n

5. Mobile, AL<\/a><\/h2>\n

Median list price: $263,250
\nJune foreclosure filings per 10,000 housing units: 5.3<\/p>\n

Mobile has been an area that has generally withstood the current housing market cool-off, with relatively affordable real estate and some of the quality of life amenities more home shoppers have been looking for in the past few years: warmer winters and proximity to beaches.<\/p>\n

Christy Gustin<\/strong>, a Realtor at Bellator Real Estate & Development in Mobile, says the past couple of years have been a time of rising home values and quick sales, even recently as the market has cooled across the country.<\/p>\n

One foreclosure caught her eye recently.<\/p>\n

\u201cI saw one on the [multiple listing service] the other day, and I thought to myself, \u2018That\u2019s interesting. I haven\u2019t seen a foreclosure in a while,\u2019\u201d she says. \u201cAnd believe me, I\u2019ve got buyers who want to see them.\u201d<\/p>\n

6. Orlando, FL<\/a><\/h2>\n

Orlando, FL<\/p>\n

rgaydos\/iStock<\/p>\n

Median list price: $459,450
\nJune foreclosure filings per 10,000 housing units: 5.1<\/p>\n

The aftermath of the housing bust took a toll on Florida\u2019s homeowners as foreclosures became a common sight throughout the state. Now they\u2019re rising again in several regions, but none as high as Orlando.<\/p>\n

Paul Urich<\/strong>, a bankruptcy attorney in Orlando, says he\u2019s witnessed it firsthand in recent months, as the COVID-19-related foreclosure moratorium has ended and homeowners are facing more expensive basic goods.<\/p>\n

\u201cI\u2019m seeing a lot more foreclosures,\u201d Urich says.<\/p>\n

Many who are having a tough time paying their mortgage are retired folks on fixed incomes. Inflation is to blame for much of it, Urich says, with everyday costs putting pressure on those fixed incomes that retirees were counting on to cover all of their other expenses.<\/p>\n

Foreclosures are \u201cgoing to keep rising,\u201d he says. \u201cThe mortgage companies are over COVID, and they\u2019re now putting these houses up for foreclosure.\u201d<\/p>\n

7. Macon, GA<\/a><\/h2>\n

Median list price: $259,250
\nJune foreclosure filings per 10,000 housing units: 4.8<\/p>\n

Near the geographic center of Georgia, you\u2019ll find Macon, a relatively small metro area with just 233,000 residents about 1.5 hours southeast of Atlanta. It\u2019s known for its historic architecture and Southern charm, named after Nathaniel Macon<\/strong>, a former U.S. senator.<\/p>\n

Macon has relatively affordable housing, but in June the area had a foreclosure rate more than three times the national average. And it\u2019s been climbing, up more than 50% from the same time last year\u2014ticking up 16% just since May.<\/p>\n

Home shoppers in this area looking for a foreclosed home can find this three-bedroom, brick ranch<\/a> listed for $71,000.<\/p>\n

8. Philadelphia, PA<\/a><\/h2>\n

Philadelphia, PA.<\/p>\n

Getty Images<\/p>\n

Median list price: $354,950
\nJune foreclosure filings per 10,000 housing units: 4.8<\/p>\n

The City of Brotherly Love is the largest metro on our list of areas with a high and growing foreclosure rate. Villanova economics professor Fiorenza says there are some pockets of the city showing serious economic strains, causing some of the spike in the metro\u2019s overall rate.<\/p>\n

\u201cYou\u2019re seeing more foreclosures, especially in the suburbs of Philadelphia,\u201d he says. \u201cTake a look at the city of Chester<\/a>.\u201d<\/p>\n

This small municipality has some of the worst budget deficits anywhere, with mounting pension obligations and a recent municipal bankruptcy filing. That trickles down, Fiorenza says, to the real estate market.<\/p>\n

\u201cOn top of all the city\u2019s finance problems,\u201d he says, \u201cthey\u2019re still struggling to get all these distressed areas cleaned up and rehabbed.\u201d<\/p>\n

That means stagnant or declining home values, low housing demand, and a depressed local economy, Fiorenza says, all of which can lead to foreclosures.<\/p>\n

9. Peoria, IL<\/a><\/h2>\n

Peoria,IL<\/p>\n

Getty Images<\/p>\n

Median list price: $169,675
\nJune foreclosure filings per 10,000 housing units: 4.5<\/p>\n

Once known as the \u201cWhiskey Capital of the World\u201d for its abundance of distilleries, Peoria is one of the oldest settlements in Illinois. Located on the Illinois River, the local economy is now centered on manufacturing and farming.<\/p>\n

The city has long been a haven for housing affordability, typifying the less expensive Midwestern housing markets. Over the past year, the metro experienced a roughly 20% increase in foreclosure filings.<\/p>\n

Now, it\u2019s possible to find a 2,400-square-foot, four-bedroom home<\/a> in foreclosure for less than $25,000.<\/p>\n

10. Modesto, CA<\/a><\/h2>\n

Modesto, CA<\/p>\n

Getty Images<\/p>\n

Median list price: $532,438
\nJune foreclosure filings per 10,000 housing units: 4.3<\/p>\n

In California\u2019s Central Valley, about 70 miles south of Sacramento<\/a>, the Modesto metro area is home to around 500,000 residents (and the birthplace of \u201cStar Wars\u201d creator George Lucas<\/strong>). It\u2019s known for being a bit more affordable than most of California\u2019s pricey housing markets. But it\u2019s now got a foreclosure rate of around three times the national average, and one that is more than 40% up from this time last year.<\/p>\n

A small two-bedroom home in foreclosure<\/a> can be found for less than $300,000 in Modesto right now.<\/p>\n

The post Foreclosure Rates Are Surging: These 10 U.S. Cities Are Where They\u2019re Up the Most<\/a> appeared first on Real Estate News & Insights | realtor.com\u00ae<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Realtor.com \/ Getty Images Foreclosures in America are on the rise for the second year in a row. This puts a firm bookend on an 11-year decline in the forced repossession or sale of a home when a homeowner can\u2019t pay the mortgage. But let\u2019s take a deep breath: The current rise in foreclosure activity…Read More→<\/a><\/p>\n","protected":false},"author":0,"featured_media":2918,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2917","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts\/2917","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/comments?post=2917"}],"version-history":[{"count":0,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts\/2917\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/media\/2918"}],"wp:attachment":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/media?parent=2917"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/categories?post=2917"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/tags?post=2917"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}