Are Foreclosures on the Rise?

At the beginning of the COVID-19 pandemic, federal and state governments imposed foreclosure moratoriums, effectively halting almost all foreclosure activity in the United States. However, when those moratoriums expired, foreclosure rates rose significantly. According to ATTOM Data Solutions, a provider of real estate data, foreclosure activity in the United States more than doubled in 2022 and continued to increase in 2023 and into 2024. But this increase was understandable. Foreclosure filings were down to record-low levels during the pandemic due to the government's COVID-19 forbearance program, moratoriums, and other mortgage relief options for homeowners.

Also, the elevated foreclosure levels of 2023 and 2024 were actually well below the numbers during the Great Recession and foreclosure crisis. And, as of early 2025, foreclosure rates are dropping.

Because recent foreclosure numbers aren't close to those the nation suffered through in the 2008-2012 foreclosure crisis or after the pandemic, you don't need to panic, even if you're having trouble making your mortgage payments.

Are More Foreclosures Coming?

Unless market conditions drastically change, the number of foreclosures in the U.S. is expected to remain relatively low.

What's Different Since the Foreclosure Crisis and the Pandemic?

Mortgage lenders, loan servicers, legislators, and homeowners learned from the foreclosure crisis. Federal and state governments passed laws to give homeowners more rights in the foreclosure and loss mitigation processes. Lenders and servicers revamped their policies to comply with these laws. And homeowners have access to resources and information to help them avoid losing their homes to foreclosure.

Lenders, servicers, and the government also responded to the COVID-19 pandemic accordingly by initiating moratoriums and relief options for homeowners affected by the disease.

These factors prevented thousands, if not millions, of foreclosures.

Other Reasons Today's Housing Market Is Different

Another big difference between the foreclosure crisis that began in 2008 and now is that the abusive, predatory, and unaffordable subprime mortgage loans made in the early 2000s are no longer available. Those loans allowed people to buy homes they couldn't afford and inflated the housing market. Today, lending laws and practices are much stricter and generally prevent people from buying homes they can't afford.

Also, the majority of homeowners have equity in their properties. So, while the housing market is slowing down, mainly due to the Federal Reserve's increasing of mortgage interest rates to control inflation, it isn't crashing.

Will We Have Another Foreclosure Crisis?

The country probably won't go through another foreclosure crisis soon. Homeowners facing foreclosure, say because of unemployment or some other financial hardship, can leverage their home equity to make ends meet (for example, by taking out a home equity loan) or sell the home and pay off the mortgage rather than go through foreclosure.

Also, more resources and protections are available to homeowners to avoid foreclosure. And many federal and state laws protect homeowners and provide ways for borrowers to get a foreclosure alternative.

However, if something catastrophic happens in the housing market, it's a different story. For example, if homeowners' insurance becomes unaffordable or unavailable for a significant number of homeowners because of the risks associated with climate change, like wildfires and hurricanes, that could potentially push the nation into a foreclosure crisis.

Talk to a Foreclosure Lawyer

If you're behind in mortgage payments and worried about foreclosure, you might have more options than you think. Consider talking to a foreclosure attorney to learn about alternatives. A lawyer can advise you about loss mitigation options, your legal rights in a foreclosure, and defend you against a foreclosure in court.

Also, consider contacting a (free) HUD-approved housing counselor if you need more information about loss mitigation options or want help with the application process. Visit hud.gov to find a housing counseling agency near you, or call 800-569-4287.