New Jersey and Illinois dominate markets most vulnerable to foreclosure


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The impact of the pandemic on lockdown risk became more acute in some areas during the third quarter.

Even though the number of coronavirus cases is declining, it still poses a “significant threat to the economy, with certain housing markets in pockets of the country remaining at greater risk than others, ”said Todd Teta, Attom’s chief product officer, in the report.

Nearly half of the 50 counties most vulnerable to lockdown, including all of the top 9 and 14 of the top 20, were in New Jersey and Illinois, according to Attom Data Solutions’ special coronavirus report. . The report measures risk based on a mix of home affordability, underwater properties, and foreclosure reports in each area.

Florida and North Carolina were the only other states with more than two counties in the top 50, with four and three, respectively. Conversely, years of leader of the country in the appreciation of house prices kept western markets isolated. Only two counties in the top 50 were in the West: Shasta, California at No. 31 and Humboldt at No. 50.

Sussex County, New Jersey, ranked as the nation’s most mortgage risky market. In this county, 36.9% income share is required to buy a house at the median price, 18.1% of properties were underwater from the second trimester and about 0.06% of county borrowers filed for foreclosure in the third. Kendall County, Illinois, ranked second with measurements in those same categories of 39.5%, 11.7% and 0.11%, respectively. McHenry, Ill., Followed with previous consistent affordability and housing measures of 34.6%, 15% and 0.08%.

Globally, foreclosure starts rose 32% in the third quarter versus the second and 67% year-over-year, according to a separate Attom report from Oct. 14. This could be a trend in the future with federal protections now expired and borrowers leaving forbearance at high rates.

“I expect to see three small waves of foreclosure activity as we exit the moratorium and forbearance program: one this fall, which will be primarily made up of loans that were in foreclosure prior to the pandemic; one in the first quarter of 2022 when the new CFPB maintenance rules (and vacation moratoria) expire; and another in the summer, when most everyone has left the forbearance program and departments have exhausted loss mitigation options with most borrowers, ”said Rick Sharga, branch executive vice president. from Attom RealtyTrac, in a statement to NMN. “Even with these waves, I don’t expect foreclosure activity to return to normal levels until the end of 2022.”

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