Foreclosure activity is climbing again after several unusually quiet years, and the numbers are worth a closer look if you own a home or are thinking about buying one.
ATTOM Data Solutions reported that foreclosure filings rose about 15% year over year in 2024, with roughly 355,000 properties receiving a filing.
That is still far below the 2010 peak of nearly 2.9 million, but the direction of the trend has changed.
The increases are concentrated in a handful of states rather than spread evenly across the country.
New Jersey, Delaware, Maryland, Illinois, and South Carolina have posted some of the steepest jumps in foreclosure starts.
New Jersey alone saw filings rise more than 40% in recent reports, according to ATTOM.
These are mostly states with slower court timelines, which means older delinquencies are only now working through the system.
The bigger culprits are rising property taxes, homeowners insurance premiums, and HOA dues.
In Florida and parts of the Northeast, insurance costs have spiked double digits in some markets.
A homeowner with a fixed mortgage payment can still fall behind when the escrow portion of that payment jumps by $200 or $300 a month.
There is also the pandemic-era forbearance hangover.
Millions of homeowners paused payments during 2020 and 2021, and most exited those plans successfully.
But a slice of borrowers never fully caught up, and loan servicers have resumed normal collection and filing timelines now that federal protections have expired.
If you are worried about your own situation, the single most important thing is to open the mail.
Ignoring a notice from your servicer or a court filing does not make it go away, and it can cost you options that disappear fast.
Loan modifications, repayment plans, and short sales are all more available when you act early rather than after a sale date is set.
For buyers, this is not a reason to panic.
Foreclosures remain a small share of overall home sales, and most markets are still tight on inventory.
Distressed properties can be a way to buy below market, but they often need significant repairs and sell as-is.
Budget for that, and get an inspection even when a seller pushes back.
When a landlord falls behind on a mortgage, tenants can get caught in the middle, sometimes with little notice to move.
Knowing your state's rules on lease obligations after foreclosure is worth ten minutes of research before it ever becomes a problem.
The bigger picture is that this is a return to normal, not a return to 2009.
Lending standards are far tighter, most homeowners have fixed-rate loans with low payments, and home equity is near record highs nationally.
That cushion means most borrowers in trouble have a way out other than losing the house.
My take: if you have been treating your escrow statement as junk mail, stop.
The monthly mortgage number you signed up for is not the number you are paying now, and that gap is quietly pushing some families toward the edge.
Final Thoughts
Check your escrow balance, call your servicer with questions, and do it before a late notice forces the conversation.