Foreclosure activity in Arkansas more than doubled in 2022 from a year earlier, but remains well below pre-pandemic levels, according to a new report.
An analysis by California-based Attom Data Solutions, which tracks national housing and foreclosure data, found that 1,964 properties were foreclosed in Arkansas in 2022. This is a 125.75% increase from the all-time low of 870 properties in 2021 and ranks 30th among US states.
Foreclosure claims were filed against 2,911 properties in Arkansas in 2019 and 3,613 in 2018.
In 2010, at the peak of the foreclosure market, Arkansas had 19,757 filings, according to Attom’s historical data.
Nationwide, Attom reported foreclosures on 324,237 US properties in 2022, up 115% from 2021 but down 34% from 2019, before the pandemic hit the market.
“Eighteen months after the end of the government moratorium on foreclosures, and with less than 5% of the 8.4 million borrowers who participated in the CARES Act leniency program remaining, foreclosure activity remains significantly lower than it was before the COVID-19 pandemic.” , the message says. Rick Sharga, Executive Vice President of Market Research at Attom. “It seems clear that the efforts of the government and the mortgage industry during the pandemic, combined with a strong economy, have helped prevent millions of unnecessary foreclosures.”
The house goes into foreclosure when the owner is unable to pay the mortgage. Banks begin the foreclosure process by filing a foreclosure hearing notice to decide if the house is being sold at auction. A home is considered “problematic” when it is in any stage of foreclosure.
Among 224 metropolitan statistical areas with a population of at least 200,000, Northwest Arkansas had one of the lowest foreclosure rates in the nation. Attom said the 166 properties that received foreclosure applications in 2022 represent just 0.07% of all regional housing units. This ranks Northwest Arkansas 211th out of the top 224 urban areas.
The other Arkansas cities in the report were central Arkansas (653 applications, 0.19%, #117) and Fort Smith (143 applications, 0.12%, #189).