ATTOM is a leading curator of land, property, and real estate data. It releases updated monthly reports on U.S. Commercial Foreclosures. Their newest report, released in March 2024, reveals a continued increase in commercial foreclosures. The lowest figures were posted during the height of the pandemic in May 2020 with 141 commercial foreclosures posted that month. Today, the figure stands at 625 in March 2024. The data indicates that there has been a steady increase since the pandemic and that figure is increasing every month.
Historical Data on Commercial Foreclosures in the U.S.
ATTOM has been aggregating data since January 2014—a period marked by national economic uncertainty with commercial foreclosures numbering 740 nationwide. Over the next few years, ATTOM monitored fluctuations in commercial foreclosure rates. In October 2014, it noted a peak in commercial foreclosures numbering 889. This data indicated ongoing market corrections. However, the entire 10-year period between then and now has not been marked by a constant uptick in commercial foreclosures. Despite challenges presented by COVID-19 and evolving economic policies, the market demonstrated a remarkable ability to adapt to changing circumstances.
Initial pandemic-fueled foreclosures were followed by a stabilization period after businesses adjusted to new realities. In May 2020, the rate of commercial foreclosures hit a record low with only 141 posted during the month. This reflected the immediate impact of pandemic-related programs to help out small businesses that were shut down during the pandemic. It also reflected policies that placed moratoriums on the foreclosure process during the pandemic.
As of March 2024, commercial foreclosures have risen to 625—a 117% increase compared to the low in 2020.
Reviewing Commercial Foreclosures by State
As of March 2024, California had the highest number of commercial foreclosures in the nation with 187. This showed an 8 percent increase from the previous month but a 405% increase from the previous year. California began showing a notable rise in the number of commercial foreclosures as of November 2023. At this point, California had surpassed 100 cases on a monthly basis. The trend continues upward.
Other states such as New York, Florida, Texas, and New Jersey also showed a significant variance over the decade. In each case, the number of commercial foreclosures has continued to rise. In March 2024, New York had a total of 61 commercial foreclosures which represented a 5 percent increase from the previous month and a 65 percent increase over the previous year.
Texas saw a 31 percent increase over the previous month and a 129 percent increase over the previous year.
Our home state of Florida saw a 30 percent increase from last month and a 107 percent increase over the previous year. In Florida, from November 2023 to January 2024, there were 126 commercial foreclosures, according to ATTOM’s data.
- November 2023 – 39
- December 2023 – 40
- January 2024 – 47
Why Are Commercial Foreclosures So Prevalent in 2024?
Commercial properties have seen a major shift since the height of the pandemic. During the pandemic, more individuals began working from home. For years, experts predicted that we would see a rise in the number of commercial foreclosures throughout the country as more of the workforce works from home and some businesses have defaulted on their properties’ loans. The ATTOM data appears to bear this out. Since the pandemic in 2020, the rise in commercial foreclosures has many economists concerned.
Many of these commercial foreclosures are being developed into residential properties by local developers. With the cost of rent also skyrocketing for Americans, more of these properties will turn into apartments as the years unfold.
Inflation is another consideration when it comes to commercial foreclosures. The housing market is seeing housing shortages which are driving up the cost of rent.
Understanding Commercial Foreclosures in Florida
Florida is a judicial foreclosure state. This means that if a lender wants to foreclose on a property, they must file a lawsuit against the tenant and secure a judgment from the court. Although the majority of foreclosures involve residential property, the same rules apply to commercial properties as well. While all foreclosures are complicated, commercial foreclosures tend to be particularly complex.
Those who believe that their commercial property is being foreclosed on should keep in mind that they are not out of options. Loan Lawyers, LLC has helped thousands of Florida residents with their debt problems. We help consumers save their properties, eliminate mortgage debt, and recover money on behalf of our clients due to bank, loan servicer, and debt collector violations.
What Can I Do If My Loan Is Distressed?
Once a loan becomes distressed or goes into default, both the lender and the borrower have options at their disposal. In the majority of cases, the lender will have to file a lawsuit to foreclose on the property. Alternatively, the lender can demand that a borrower make payments on their loan without filing a lawsuit. They can also exercise self-help rights they have to the collateral property.
Sometimes, the lender and borrower will enter into a consensual agreement that does not require the approval of the court. Options like loan modification and deeds-in-lieu of foreclosure are two of these potential options the same way they are in cases of residential foreclosure.
In cases where a lender feels that these other options carry more risk than benefit, they may choose to proceed with a judicial foreclosure.
Talk to a Florida Commercial Foreclosure Attorney Today
Loan Lawyers, LLC has helped thousands of South Florida residents deal with distressed mortgage loans. If a lender is proceeding with a judicial foreclosure, you may have options at your disposal that you did not consider. The Florida commercial foreclosure defense lawyers at our office can help you negotiate with the lender for a loan modification or surrender the deed of your property in lieu of a foreclosure action. Call our office today to schedule an appointment, and we can begin discussing your next steps right away.
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