Mortgage foreclosure rates are dropping all across the country, but Alabama ranks fifth for the highest rate and Birmingham ranked second on the list of cities, says ATTOM Data Solutions, based on its RealtyTrac services.
Nationwide, foreclosure rates have dropped about 12% from a month ago and 80% from a year ago. That means 1 in every 14,164 housing units saw a foreclosure filing in January 2021.
Delaware, Louisiana, Florida and Indiana topped the list for foreclosure rates and Alabama notched in at fifth with 1 in every 8,707 housing units in trouble.
Birmingham, meanwhile, ranked second on the list of cities with 200,000 or more population with the worst foreclosure rates — one in every 3,053 housing units. That’s much better than list topper Lake Charles, Louisiana, with one in every 2,050 units in trouble. Lafayette, Louisiana; Provo, Utah, and Beaumont, Texas, also found themselves among the top five.
“January foreclosure activity declined at least in part due to the Biden Administration’s decision to continue the foreclosure moratorium on government-backed loans through the end of March,” said Rick Sharga, RealtyTrac executive vice president. “The moratorium and CARES Act mortgage forbearance program have effectively prevented millions of seriously delinquent loans from entering the foreclosure process. But it’s important to remember that the number of foreclosures we’re seeing right now doesn’t reflect market reality — and that’s something we’ll need to deal with once these government programs expire.”
California-based ATTOM Data Solutions tracks real estate data across the country.
