ATTOM Data Solutions reports that 191,824 homes had default notices, scheduled auctions or bank repossessions in the quarter, down 13% from the previous 3 months, down 35% year-over-year, and 31% below the pre-recession average.
"Legacy foreclosures from the high-risk loans originated between 2004 and 2008 have largely been cleared out of the distressed market pipeline," said Daren Blomquist, senior vice president at ATTOM Data Solutions.
"Meanwhile loans originated during the housing boom of the last five years are posting foreclosure rates below historic averages, with the notable exception of FHA loans originated in 2014, which have the highest foreclosure rate of any FHA loan vintage since 2009 — 29% above the historic average for FHA loans although still 55 percent below the peak in 2007," added Blomquist.
Lenders began the foreclosure process on 93,724 US properties in the third quarter of 2017, down 7% from the previous quarter and 16% below Q3 2016.
Foreclosure starts were at the lowest level in the third quarter of 2017 since ATTOM began tracking in the second quarter of 2005.
Although the national trend was for fewer foreclosure starts, 24% of metros analyzed in the report posted a year over year increase. Those 51 metros include Dallas-Fort Worth, Denver, Cincinnati, Cleveland and Columbus.
However, 57% of local markets saw third quarter foreclosure activity below pre-recession averages. They include Los Angeles, Chicago, Dallas, Houston and Miami.
More market update:
The number of US homes with foreclosure filings fell to an 11-year low in the third quarter of 2017.