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Foreclosures are increasing with the end of COVID-era moratoriums. This is where they happen the most
A brown stucco house with palm trees and a foreclosure sign in the front yard.
Over the past two years, foreclosures in the United States have reached record highs largely due to Covid-19 relief efforts provided to families. Foreclosure is the process by which a bank or lender forecloses on a home after the homeowner fails to meet mortgage payments.
In 2022, foreclosure activity increased: in the first six months of the year, 117,383 properties began the foreclosure process. California and Illinois, two states that saw significant out-migration during and after the pandemic, were among the states with the highest number of foreclosures. Overall, foreclosure rates across the country rose 143% in July, compared to the same month in 2021.
Early in the pandemic, foreclosure moratoriums — which prevented lenders from foreclosing on homes due to missed payments — were put in place to protect homeowners who were going through financial hardship. As these measures expired in the fall of 2021, seizures began to increase. So far this year, there have been nearly 165,000 seizure depositsaccording to real estate data firm ATTOM Data, which is close to where filings were pre-COVID.
Stacker looked at Metropolitan Statistical Area (MSA) data for July 2022 from ATTOM data. The ATTOM Data report focused on metropolitan areas with populations over 250,000. The foreclosure rate was calculated by dividing the total number of households in each metropolitan area by the number of foreclosures filed.
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#ten. Chicago, Ill.
Historic brick houses.
– Foreclosure rate: one in 2,082 homes
–Total seizures: 1,894
— Percentage change from a year ago: 3,860.6%
Since July, Chicago has been among the worst seizure rates for cities with more than one million inhabitants.
#9. Columbia, South Carolina
Aerial view of downtown Columbia, SC.
– Foreclosure rate: One in 2,024 homes
–Total seizures: 181
— Percentage change from a year ago: 802.0%
In Colombia, one in 1,921 homes is in foreclosure. This is happening despite the drop in unemployment in the region which has been to 3.2% in June 2022. Colombia’s foreclosure rate remains one of the highest in the country.
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#8. Chico, California
A view of Chico, California from the countryside.
– Foreclosure rate: one dwelling in 2,003
–Total entries: 45
— Percentage change from a year ago: 246.2%
Higher mortgage rates and rampant inflation have some potential Chico buyers rethinking whether they want to make the heavy purchase. By July 2022, 15% of consumers had canceled plans to buy a home in the area. Even so, Chico’s housing market is still competitive, with home price up 4.4% compared to 2021.
#seven. Rockford, Ill.
Downtown Rockford, IL at night.
– Foreclosure rate: one dwelling in 1,613
— Total seizures: 90
— Percentage change from a year ago: 291.3%
In recent months, Rockford has seen low housing inventory and rising mortgage rates reduce the number of home sales. Homes in the Rockford area have been hit by foreclosures, with 381 homes in foreclosure in the first half of 2022. That puts Winnebago County in Illinois among highest foreclosure rates in the country.
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#6. Bakersfield, California
Aerial view of Bakersfield, California in the fall.
– Foreclosure rate: one dwelling in 1,930
–Total seizures: 156
— Percentage change from a year ago: 147.6%
Residents of Bakersfield were strongly impacted by rising rents and housing costs. For those who can afford a home, some properties’ basic amenities, such as air conditioning and light fixtures, are not always available.
To help address housing issues, the city plans to take concrete action using a $3 million grant it received from the state.
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#5. Atlantic City, New Jersey
Aerial view of homes in Atlantic City, NJ.
– Foreclosure rate: one in 1,886 homes
–Total entries: 70
— Percentage change from a year ago: 25.0%
Home prices in Atlantic City increased by 34.2% in June 2022; however, the number of home sales fell compared to the same period in 2021.
In April 2022, 7 out of 9 casinos in Atlantic City keep falling behind in their in-person gambling revenue, which may be a trend for the region’s economy. Atlantic City is known for its thriving casinos, boardwalk and beaches, but this could be a sign consumers are starting to reduce play and hotel stays that are not considered necessities.
#4. Cleveland, Ohio
Aerial view of a freeway that runs through Cleveland, OH and nearby homes.
– Foreclosure rate: one dwelling in 1,757
–Total seizures: 551
— Percentage change from a year ago: 1,336.7%
Cleveland has seen an increase zombie foreclosure rates. The term was coined for abandoned properties by owners who believe – often mistakenly – that they should vacate the property after falling behind on payments and receiving a notice of foreclosure. In Cleveland, 1 in 1,426 homes was vacant and facing foreclosure.
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#3. Fayetteville, North Carolina
Sunrise over Fayetteville, North Carolina.
– Foreclosure rate: One in 1,673 homes
–Total seizures: 97
— Percentage change from a year ago: 366.7%
In June 2022, Fayetteville’s unemployment rate increased to 5.9% against 5.2% the previous month. Soaring inflation has also increased residents’ need for seek help from area food banks in North Carolina.
Eduardo Medrano // Shutterstock
#2. Davenport, Iowa
The skyline and sunset over Davenport, Iowa.
– Foreclosure rate: one in 1,626 homes
–Total seizures: 107
— Percentage change from a year ago: 991.9%
Historically, Iowa has often been considered one of the most affordable states. Although Iowa’s foreclosure rates aren’t as high as other parts of the Midwest, foreclosure rates in the state have more than doubled in the past year.
During the first quarter of 2021, Harrison County in Iowa had no foreclosures, but by the fourth quarter the county had recorded three. Mills County and Dickinson County in Iowa also saw an increase in foreclosures.
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#1. Elkhart, Indiana
Small street in Elkhart, IN.
– Foreclosure rate: One in 1,592 homes
–Total entries: 50
— Percentage change from a year ago: 257.1%
Metropolitan areas with a population of at least 200,000, such as the recreational vehicle manufacturing hub of northern Indiana, Elkharthad the highest foreclosure rates in July 2022. Despite wage increases in Elkhart, many area employers say there are there just aren’t enough workers in the zone.
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