After three years of historically low foreclosure activity, the numbers are ticking upward again.
ATTOM Data reported that foreclosure filings rose in 2024 compared with 2023, and the trend has continued into 2025.
It's not 2008 all over again — but the shift matters if you own a home or are trying to buy one.
Here's the twist: this isn't mainly a story about people losing jobs and missing payments.
It's a story about homeowners who locked in cheap pandemic-era mortgages now facing a different kind of squeeze — rising property taxes, insurance premiums that have jumped 20% or more in some states, and home equity lines of credit that got a lot more expensive.
Florida, Texas, and California are seeing some of the biggest jumps in filings.
In Florida, insurance costs have spiraled so high that some homeowners are paying more for coverage than their mortgage.
Texas property taxes remain among the highest in the nation.
When you add a HELOC payment that doubled after the Fed's rate hikes, the monthly math stops working for people who thought they were safe.
Nationwide, foreclosure filings are still well below pre-pandemic norms.
The foreclosure rate sits around 0.2% of all housing units — roughly one in every 500.
During the 2008 crisis, it was closer to one in 50.
But the composition of who's at risk has changed in ways that catch people off guard.
The bigger story is what this does to the housing market.
More foreclosures mean more distressed inventory, which can pull prices down in specific neighborhoods — good news for buyers who've been priced out, less good if you bought at the peak in 2022.
Lenders are also tightening standards again, which makes it harder for marginal buyers to qualify.
If you're worried about your own situation, the practical moves are boring but effective.
Check whether your escrow account has a shortfall — a surprise tax or insurance bill is the most common trigger for a payment shock.
Call your servicer before you miss a payment, not after.
Most lenders have hardship programs that are far less painful than the alternative.
For buyers, this is a moment to pay attention to local data, not national headlines.
Foreclosure activity is hyperlocal — a spike in one county says nothing about the one next door.
Ask your agent for delinquency rates and days-on-market trends in the specific ZIP codes you're considering.
The takeaway: the foreclosure wave isn't here, but the tide has turned.
The homeowners getting hit hardest aren't the ones who overborrowed on a house — they're the ones who underestimated what it costs to keep one.
Our take: the real story here is that "affordable" mortgages from 2021 aren't so affordable anymore once taxes and insurance catch up.
Final Thoughts
If you bought in the last five years, check your escrow statement this month — before your servicer does it for you.