Lenders repossessed 3,844 U.S. properties in May, a 7% increase from April and a 34% gain from last year.
At the same time, foreclosure filings fell 1% month over month and 9% year over year. Meanwhile, lenders started the foreclosure process at a 4% reduced monthly clip in May and an 8% lower annual rate, according to data released Tuesday by Attom.
These opposing trends suggest a murky outlook for foreclosure activity moving forward, observed Attom CEO Rob Barber.
“Foreclosure activity in May reflected a mixed picture with fewer starts but a continued rise in completed foreclosures,” Barber said in a press release. “This suggests that while fewer new defaults are being initiated, lenders may still be working through a backlog of existing cases. We’ll be watching closely in the months ahead to see how these trends evolve.”
A foreclosure start is when a lender initiates the foreclosure process by issuing a notice of default. A foreclosure filing is when a lender files a lawsuit seeking permission to sell the property because the borrower failed to resolve the loan default within a specified period.
States with the highest foreclosure filing rates in May included Delaware (1 in every 2,313 housing units); Florida (1 in 2,536 units); Illinois (1 in 2,668 units); Nevada (1 in 2,747 units); and Indiana (1 in 2,983 units).
Major metropolitan areas with a population exceeding 1 million that led in foreclosure filings last month included Jacksonville, Fla. (1 in every 1,888 housing units); Riverside, Calif. (1 in 2,031 units); Cleveland (1 in 2,064 units); San Antonio (1 in 2,202 units); and Chicago (1 in 2,203 units).
