Foreclosures

(The Center Square) – Alabama was in the top 20% a recent independent analysis examining home foreclosure filings at the conclusion of the first quarter of 2022.

ATTOM Data Solutions, an Irvine, Calif.-based firm specializing in property and real estate information, recently compiled a report on foreclosure filings and related data through its RealtyTrac subsidiary.

The analysis comes with foreclosures on the rise across the U.S. as pandemic-induced pauses have lifted.

According to the RealtyTrac-ATTOM compilation, Alabama in the first quarter of 2022 recorded a total of 1,143 foreclosure filings, equating to a rate of 1 in every 2,002 housing units across the state.

The data resulted in a No. 18 ranking in the analysis.

Within Alabama, foreclosures have been trending upward since the heaviest of the COVID-19 lockdowns ceased. According to RealtyTrac-ATTOM, foreclosures rose 68.83%, year-over-year in the fourth quarter of 2021.

Neighboring states had varied results in the analysis, with several recording higher foreclosure rates.

Florida, for example, ranked No. 8 in the analysis, with 8,147 foreclosure filings and a rate of 1 in every 1,211 housing units across the state. Georgia also ranked higher in the analysis, at No. 10, with 2,592 foreclosures and a rate of 1 in every 1,702 housing units.

But several other nearby states outpaced Alabama in the analysis. Tennessee ranked No. 28, with 1,084 foreclosures and a rate of 1 in every 2,797 housing units. Mississippi clocked in at No. 33, with 433 foreclosures and a rate of 1 in every 3,048 housing units.

Across the U.S., Illinois was the state with the highest number of foreclosure filings (6,861) in the first quarter of 2022, while South Dakota was at the bottom, with 22 on record.

Rising foreclosure filing rates have occurred throughout the U.S. as 2022 has progressed, though the figures are still below pre-pandemic rates.

“Foreclosure activity has continued to gradually return to normal levels since the expiration of the government's moratorium, and the CFPB's enhanced mortgage servicing guidelines,” Rick Sharga, executive vice president of market intelligence for ATTOM, said in a statement.

CFPB is an acronym for the Consumer Financial Protection Bureau.

Referencing comparable foreclosure filing rates before COVID-19’s onset, Sharga said, “Even with the large year-over-year increase in foreclosure starts and bank repossessions, foreclosure activity is still only running at about 57% of where it was in Q1 2020, the last quarter before the government enacted consumer protection programs due to the pandemic.”