CoreLogic monitored the crisis for a decade, noting that the crisis began in some parts of the country in 2007 and hit the highest watermark with 120,000 completed foreclosures in September 2010 alone.
Two incidents, according to many economists, led to the crisis – the fall of two Bear Stearns subprime funds in June 2007 and the bankruptcy of the Lehman Brothers in September 2008.
Approximately 7.8 million foreclosures have been completed in the country since 2007; there were a million in 2009, in the crisis peaked in 2010 with nearly 1.2 million foreclosures.
“The country experienced a wild ride in the mortgage market between 2008 and 2012, with the foreclosure peak occurring in 2010,” said Dr. Frank Nothaft, chief economist for CoreLogic. “As we look back over 10 years of the foreclosure crisis, we cannot ignore the connection between jobs and homeownership. A healthy economy is driven by jobs coupled with consumer confidence that usually leads to homeownership.”
Foreclosure rates started to normalize after 2010, with a steady decline of 100,000 per year through 2016. The end of 2016 recorded 336,000 (0.9% of all homes with a mortgage) foreclosures compared with 2010, when 3.3% of all mortgaged homes fell into foreclosure.
Florida had the highest percent of mortgages in the foreclosure inventory with 12.5% in June 2011.
Mortgage delinquency rises in last three months of 2016 – survey
Completed foreclosures fell in 2016
The number of residential foreclosures is starting to normalize after it peaked in 2010 throughout the country, according to CoreLogic’s 10-year report on the residential foreclosure crisis.