You may be seeing headlines about how foreclosures are on the rise. And if that makes you nervous that we’re headed for another crash, here’s what you should know.
The Headlines vs. The Reality
According to ATTOM, during the housing crash, more than nine million people went through some form of distressed sale between 2007 and 2011. Last year, that number was just over 300,000.
So yes, foreclosures have increased a bit lately, but the numbers are still dramatically lower than what we saw back then.
The big question is: what does the future hold? Is another wave of foreclosures about to hit?
The short answer: No.
Why Experts Aren’t Concerned
Industry professionals track mortgage delinquencies (loans more than 30 days past due) as an early warning sign for future foreclosures. And the latest data is reassuring.
Right now, delinquency rates are consistent with where they ended last year. In other words, we’re not seeing the kind of increase that signals widespread trouble.
A Shift Worth Watching
Currently, borrowers with FHA mortgages make up the biggest share of new delinquencies. That’s because FHA borrowers may be more sensitive to changes in the economy (like inflation, job uncertainty, or higher living costs).
But that doesn’t mean a crash is coming. Here’s why:
- Delinquency rates for conventional, VA, and USDA loans remain low and stable.
- During the 2008 crash, all loan types showed high delinquency rates.
- Today, the broader mortgage market is on much stronger footing.
Where FHA Loans Are Most Common
It’s also important to know that FHA loans only make up about 12% of all home loans nationwide.
Still, some regions rely more heavily on FHA loans than others—particularly the South. That’s why delinquency numbers may look different depending on where you live.
Even so, current delinquency rates—even in these areas—are nowhere near 2008 levels.
If You’re Facing Financial Hardship
Nobody wants to see families struggle with foreclosure. But if you’re finding it hard to keep up with your payments, know this: you have options.
- Contact your mortgage provider right away. You may be able to arrange a repayment plan or loan modification.
- Check your equity. Homeowners today have near record amounts of equity, which means selling your house could be a way to avoid foreclosure.
The key is not to wait. Explore your options early.
Bottom Line
Yes, foreclosures are up slightly. But they’re nowhere close to 2008 levels. And delinquency data doesn’t suggest a wave is coming.
Experts are keeping an eye on the numbers, and you should too. But for now, the housing market remains on solid ground.
👉 Want the latest local updates on foreclosures, delinquencies, and housing trends? Connect with The Audra O’Neal Team to get insights tailored to your area.
