Foreclosures Are Rising—But Don’t Fall for the Fear Hype
Foreclosure headlines are making waves again—and many are designed to grab your attention by sparking fear. But what’s actually happening in the housing market tells a very different story. So before you assume we’re heading for another crash, it’s worth stepping back and looking at the full picture.
Yes, Foreclosure Starts Are Up—But It’s Not What You Think
Foreclosure filings rose 7% in the first half of 2025. But let’s put that in perspective. That increase is not a sign of a looming crisis—it’s still a small ripple in an otherwise stable market.
Filings Remain Far Below Crash-Era Levels
Even with that recent bump, foreclosure activity remains historically low. In the first half of this year, just 0.13% of all homes in the U.S. had a foreclosure filing. That’s less than one-quarter of one percent—a tiny fraction when you consider the entire housing market.
And like all things in real estate, those numbers shift from region to region. That’s where this foreclosure map comes in—it shows just how low the rates really are across the country and how localized any increases may be.
To put it into perspective:
- In 2025: 1 in every 758 homes has filed for foreclosure.
- In 2010, during the housing crash: It was 1 in every 45 homes.
That’s a huge difference.
Today’s Market Isn’t Built on Risk
Let’s rewind to what led to the 2008 crisis. Back then, reckless lending practices set many homeowners up for failure. Mortgages were handed out without proper checks, and many buyers ended up with loans they couldn’t afford. When home values fell, millions were underwater and had no choice but to walk away.
Today’s market is nothing like that.
- Lending standards are much tighter
- Homeowners are sitting on record amounts of equity
- That equity gives struggling homeowners a better option: sell, rather than face foreclosure
As Rick Sharga, Founder of CJ Patrick Company, puts it:
“. . . a significant factor contributing to today’s comparatively low levels of foreclosure activity is that homeowners—including those in foreclosure—possess an unprecedented amount of home equity.”
No one wants to see anyone face financial hardship—but this time, most homeowners have more tools and choices available than they did during the last crisis.
If you’re going through a tough time, speak with your mortgage lender. You may have more flexibility than you think.
Bottom Line
Don’t let scary headlines fool you—foreclosures may be up slightly, but they’re nowhere near crisis territory. The data tells a story of stability, not collapse.
If you’re watching the market or wondering how this might affect your home’s value, talk to a local real estate expert. They’ll help you cut through the noise and focus on what’s really happening—not just what’s trending in the headlines.