Foreclosure Rates 2024

Foreclosure rates will likely go up in 2024. But the country probably won’t go through another foreclosure crisis.

By , Attorney · University of Denver Sturm College of Law

Foreclosure rates peaked in 2010 during what became known as the "mortgage crisis" or "foreclosure crisis." At that time, mortgage delinquencies primarily associated with subprime loans led to the collapse of the housing bubble, foreclosures, and the devaluation of mortgage-backed securities. However, following the crisis, foreclosure rates in the United States steadily decreased.

When the COVID-19 outbreak happened, and thousands of people lost their jobs or were otherwise unable to work and couldn't make their mortgage payments, it looked like the country was about to go through another deluge of foreclosures. So, the government imposed a foreclosure moratorium, established a mortgage forbearance program for federally backed loans, and passed new mortgage servicing laws. As a result, foreclosures remained low in 2020 and 2021.

However, in 2022 and 2023, foreclosure rates started going back up. Here's why and where foreclosures will likely happen in 2024.

What Are Current Foreclosure Rates?

According to a report by ATTOM Data Solutions, foreclosure activity in the United States in late 2022 increased significantly from 2021. The report notes that in October 2022, foreclosure activity in the United States increased by 57%.

Foreclosure activity in the United States in 2023 (again, according to a report by ATTOM Data Solutions) continued to increase, getting closer to pre-pandemic levels. The report notes that in the third quarter of 2023, foreclosure activity in the United States increased by 34% from the year prior.

The Highest Foreclosure Rates By State in 2023

As of year-end 2023, according to ATTOM, states with the highest foreclosure rates were:

These states often top the list of states with high foreclosure rates. But, which states have high foreclosure rates tend to fluctuate. Over the years, states with high foreclosure rates have also included others.

The report also notes that 92,896 properties in the United States had foreclosure filings in the fourth quarter of 2023.

What State Has the Most Foreclosures in Terms of Numbers?

States with the largest number of foreclosure starts in 2023 (again, according to ATTOM Data Solutions) included:

  1. California
  2. Texas
  3. Florida
  4. New York, and
  5. Illinois.

Also, according to ATTOM, foreclosure filings were reported on 357,062 properties in 2023, which is up 10% from 2022 and an increase of 136% from 2021, but down 28% from 2019 (pre-COVID). In addition, the report noted that foreclosure filings in 2023 were down 88% from the peak of nearly 2.9 million in 2010 during the foreclosure crisis.

Will Foreclosure Rates Drop or Go Up in 2024?

Because most foreclosure moratoriums and other COVID-related foreclosure protection laws expired by the end of 2021, an increase in foreclosure activity happened in 2022 and 2023. (Those foreclosure protections were temporary, so it was only a matter of time before foreclosure rates began to normalize.)

And it stands to reason that foreclosure rates will continue to climb in 2024. A couple of reasons for increasing foreclosure rates are rising inflation, recession fears, and the end of COVID-era forbearances.

Does Inflation Cause High Foreclosure Rates?

Inflation makes it difficult for some people to keep up with their mortgage payments. As prices for everything from eggs to cars go up, the cost of living for everyone becomes more expensive. So, many people can't pay their mortgages and go into foreclosure.

Do Foreclosure Rates Increase in a Recession?

During a recession, foreclosure rates tend to increase. Recessions often go hand-in-hand with job layoffs, which also can cause people to fall behind in mortgage payments.

COVID-Related Foreclosure Protections Have Expired

Another reason foreclosure rates might go up is that many people are exiting their COVID-19 forbearances. While lenders offer several options to help people get caught up on the skipped amounts, like with a loan modification or payment deferral, some people simply won't be able to resume making mortgage payments.

How High Will Foreclosure Rates Go?

Yet, despite these factors, foreclosure rates are still expected to remain around pre-pandemic levels in 2024. Why are foreclosure rates staying relatively low?

For one thing, mortgage interest rates have climbed to around 7% in contrast to interest rates of about 3% from a couple of years ago. Higher interest rates usually discourage potential homebuyers, who would have to pay higher monthly payments if they were to buy a home. Because high interest rates mean mortgage payments go up, many people are opting to forgo buying a home. When people stop taking out mortgages to buy homes, foreclosure rates usually don't go up.

Also, many current homeowners have low, fixed-rate mortgages (meaning they have affordable monthly payments) and a good amount of home equity (they could sell the home and walk away with some money if they get into financial trouble). So, the United States should avoid a massive wave of foreclosures.

Highest Foreclosure Rates By State in 2024

Some states are usually more affected by foreclosure than others. In the past, states that have experienced many foreclosures include California, Florida, Illinois, Nevada, New Jersey, New York, and Ohio.

Still, predicting which states will have the highest foreclosure rates in 2024 isn't easy. Whether a state will have a high foreclosure rate depends on many factors, like employment, homeowner protection laws, and the housing market.

Foreclosure Predictions 2024

While foreclosure rates during 2023 were higher than during the pandemic, a substantial wave of foreclosures isn't likely in 2024.

Unlike during the mortgage crisis, most homeowners won't go underwater on their mortgages, even if home prices decline. The majority have equity in their homes because housing prices have progressively gone up over the past few years. Even homeowners who recently purchased their properties at the peak of the housing market tend to have equity because most loans require a sizeable down payment.

So, homeowners facing financial hardships should be able to sell their homes to avoid a foreclosure (and likely walk away with some cash) or work out a loss mitigation option with their loan servicer. Both federal and state laws offer various protections and alternatives so homeowners can prevent a foreclosure. Since the mortgage crisis, laws have been enacted to ensure borrowers are treated fairly in the loss mitigation process.

Should I Buy a Foreclosure Property in 2024?

The main benefit of buying a home at a foreclosure sale is that the price is usually much lower than if you purchase a property through a regular sale. But bidding and buying a home at a foreclosure auction comes with risks, too.

If you have questions about how to buy a home at a foreclosure auction or need help with the process, consider working with an experienced real estate agent or talking to a qualified real estate lawyer.

Read More About Foreclosure

Learn more about foreclosures in What Is Foreclosure?

For information on how long a foreclosure takes, see States With Long Foreclosure Timelines.

Find out when a foreclosure can start in How Soon Can Foreclosure Begin?

Getting Help From a Foreclosure Attorney

If your home is in foreclosure, you might have more options than you think. Consider talking to a foreclosure attorney to learn more. A lawyer can advise you about foreclosure alternatives, your rights in a foreclosure under the law, and fight a foreclosure in court.

If you need additional information about foreclosure alternatives, a HUD-approved housing counselor can explain different options to you in more detail. A counselor can also help you deal with your mortgage servicer. Go to to find a housing counseling agency near you, or call toll-free 800-569-4287.

Talk to a Foreclosure attorney.
We've helped 75 clients find attorneys today.
There was a problem with the submission. Please refresh the page and try again
Full Name is required
Email is required
Please enter a valid Email
Phone Number is required
Please enter a valid Phone Number
Zip Code is required
Please add a valid Zip Code
Please enter a valid Case Description
Description is required

How It Works

  1. Briefly tell us about your case
  2. Provide your contact information
  3. Choose attorneys to contact you