State foreclosure filings hit all-time low in 2021

Last year, the number of foreclosure filings in Arkansas reached an all-time low. After officials lifted the federal pandemic protections, the wave of foreclosures some pundits expected did not materialize. There is no indication they will return to their previous levels this year.

In terms of the national level, analysis by California-based Attom Data Solutions, which tracks national housing and foreclosure data, has the same status and outlook.

There were only 870 properties with foreclosures in 2021 in Arkansas. That’s down 11.8% from 2020 and ranked No. 19 among U.S. states. According to Attom’s historical data, there were 19,757 Arkansas filings at the height of the foreclosure market in 2010.

Nationally, foreclosure filings were reported on 151,153 U.S. properties in 2021. That was down 29% from 2020 and down 95% from a peak of nearly 2.9 million in 2010.

A home goes into foreclosure when the owner can’t pay the mortgage. Banks begin the foreclosure process by filing a notice of a foreclosure hearing to decide whether a home is sold at auction. A home is considered “distressed” when it’s under any stage of foreclosure.

Among 220 metropolitan statistical areas with a population of at least 200,000, Northwest Arkansas had one of the lowest foreclosure rates in the country. Attom reported that the 46 properties with foreclosure filings in 2021 represented just 0.02% of all regional housing units. That ranks Northwest Arkansas No. 214 out of the top 220 metro regions.

Other Arkansas metros in the report were central Arkansas (338 filings; 0.10%; No. 103) and Fort Smith (72 filings; 0.06%; No. 179).