Foreclosure headlines are making noise again – and they’re designed to stir up fear to get you to click. But the real numbers paint a much more balanced picture. Before jumping to conclusions, it’s important to look at what’s actually happening in the market.
It’s true that foreclosure starts are up about 7% in the first six months of the year. But even with that increase, overall filings remain historically low.
In the first half of 2025, just 0.13% of homes nationwide had a foreclosure filing—that’s less than one in every 750 homes. That’s a very small portion of the housing market.
Back during the housing crash in 2010, foreclosure filings hit levels more than 15 times higher, with about 1 in every 45 homes affected.
One major reason we’re not seeing a crisis is that today’s housing market is fundamentally stronger than it was back then.
Leading up to the 2008 crash, risky lending practices were widespread. Homeowners were taking on mortgages they couldn’t afford, often with little or no money down. When home values dropped, many ended up underwater and simply walked away.
In contrast, today's lending standards are much tighter. Buyers must now qualify under stricter financial conditions, and that’s helped create a much more stable market overall.
Another huge difference today is the record amount of home equity many Americans now hold. This means that even if a homeowner runs into financial difficulty, they can often sell their home and walk away with money in their pocket—without ever entering foreclosure.
As Rick Sharga, Founder of CJ Patrick Company, explains:
“. . . a significant factor contributing to today’s comparatively low levels of foreclosure activity is that homeowners—including those in foreclosure—possess an unprecedented amount of home equity.”
In short, most homeowners have options.
If you or someone you know is facing a financial hardship, the best first step is to reach out to your mortgage servicer. There may be options like forbearance, loan modification, or other relief programs available to help you avoid foreclosure altogether.
Yes, foreclosure activity has ticked up slightly—but it remains well below crisis levels. Today’s housing market is nothing like 2008, and strong equity positions are helping many homeowners stay afloat.
Want to know how this trend impacts your home’s value? Or if now’s a smart time to buy or sell? Let’s talk.
To connect with me directly, contact me at 917-254-2103.
For your FREE Home Evaluation, your Homeowner Resource Guide, or your Home Buying/Down Payment Assistance Guide, use this link:
👉 https://bit.ly/45URvuV
Or text HomeswithJustin to 85377.
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