Arkansas foreclosure activity spikes in May

California-based Attom, a property data provider, recently released its May 2023 U.S. Foreclosure Market Report.

It showed there were 230 Arkansas properties with foreclosure filings in May, one for every 5,921 housing units in the state. That’s up 3.6% from April and 155.5% from a year ago.

It is still one of the lowest rates in the U.S. and ranks Arkansas No. 28.

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 that will decide whether a home is sold at auction. A home is considered “distressed” when it’s under any stage of foreclosure.

There were 35,196 U.S. properties with foreclosure filings in May, up 6.7% from April and 14% from a year ago.

“The recent increase in foreclosure filings nationwide indicates a trend that has been observed throughout the year, and what we have expected to occur,” Attom CEO Rob Barber said. “This upward trajectory suggests the possibility of continued heightened activity, and with foreclosure completions seeing the largest monthly increase this year, we will continue to monitor the potential impacts this may have on the housing market.”

Among Arkansas metros in the report, Fort Smith (one in every 4,856) ranks No. 125 out of the top 223 regions. The central Arkansas metro ranks No. 124, with one in every 4,850 housing units in foreclosure in May.

Northwest Arkansas (one in every 11,943) has one of the lowest foreclosure rates in the country and ranks No. 202.