Illinois ranks first among states with the highest foreclosure rates in August

by Emily Mack

Illinois had the highest foreclosure rate in the nation in August 2021, according to new data from ATTOM’s U.S. Foreclosure Market Report. One in every 3,848 Illinois housing units had a foreclosure filing last month. The other states with the most foreclosures were Nevada, New Jersey, Delaware and Ohio, respectively.

ATTOM is the parent company of the online foreclosure marketplace RealtyTrac.com. To compile these national figures, the ATTOM Data Warehouse considered the foreclosure filings entered into that database from the past quarter. The data was collected from more than 3,000 counties nationwide, accounting for more than 99% of the U.S. population.

ATTOM analyzed 220 metro areas with a population of at least 200,000. Among them, Rockford, IL had the fourth-most foreclosures: one in every 3,037 housing units. And of the larger metro areas, with populations greater than 1 million, the city of Chicago had the third-most foreclosures: one in every 3,754 housing units

In all, lenders began the foreclosure process on 8,348 total properties across the U.S. in August: a 27% increase from previous month and a 49% increase from 2020. In that time, lenders also completed repossessing a total of 2,474 properties through REOs (real estate owned properties): up 2% from July and up 22% from last year.

Although these statistics may appear to indicate more troublesome issues, Rick Sharga, the executive vice president at RealtyTrac, urges Americans to keep these numbers in context. “Both last year’s and last month’s foreclosure starts were artificially low due to the government’s moratorium. But in August of 2019, the last year we had ‘normal’ foreclosure activity, there were almost 28,000 foreclosure starts — over three times more than this year,” Sharga said.

The states with the greatest number of foreclosure starts in August 2021 were California with 1,240 foreclosure starts, Texas with 1,060, Florida with 643, Illinois with 506 and New York with 479. Of the major metro areas, the greatest number of foreclosure starts occurred in New York City: 486 foreclosure starts. This was closely followed by Chicago with 439, Los Angeles with 401, Houston with 322 and Dallas-Fort Worth with 248.

The states with the greatest percentage increase of completed foreclosures were New York, up 136%; Michigan, up 62%; Illinois, up 24%; Florida, up 19%; and Texas, up 13%. The greatest number of REOs also took place in Chicago: 177 REOs. This was followed by New York City with 84, Detroit with 78, Baltimore with 58 and Tampa with 43.

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