{"id":21950,"date":"2025-10-23T19:34:45","date_gmt":"2025-10-23T19:34:45","guid":{"rendered":"https:\/\/incredipros.com\/?p=21950"},"modified":"2025-10-23T19:34:48","modified_gmt":"2025-10-23T19:34:48","slug":"foreclosures-are-up-heres-why-experts-arent-worried","status":"publish","type":"post","link":"https:\/\/incredipros.com\/?p=21950","title":{"rendered":"Foreclosures Are Up. Here’s Why Experts Aren’t Worried"},"content":{"rendered":"
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If you remember the turmoil of the global financial crisis, hearing that foreclosure activity is up might make your knees weak and palms sweaty. I know I can\u2019t help it.<\/p>\n

After reading recent reports of climbing foreclosures, I spoke with experts ranging from real estate data companies to non-profit debt counselors to foreclosure auction sites. Their opinion? The national foreclosure rate is still quite low.<\/p>\n

So take a deep breath. This isn\u2019t 2008. The housing market isn\u2019t about to crash. The picture is much more complex than one statistic lets on. Here\u2019s why they aren\u2019t panicking and neither should you.<\/p>\n

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\n What is \u2018foreclosure activity\u2019?
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\n Foreclosure activity refers to any step in the foreclosure process, from a notice of default to an auction to bank-owned sales. The foreclosure process can be lengthy \u2014 ranging from a couple of months to several years depending largely on your state\u2019s laws. Data is collected at each step along the way for a complete picture.<\/p><\/div>\n<\/p><\/div>\n

There\u2019s actually less foreclosure activity now than before COVID-19<\/h2>\n

Current foreclosure numbers aren\u2019t quite as scary when you give them a little historical context. It\u2019s like turning on the lights in a dark basement. We remain at foreclosure activity levels that are well below the national average prior to the pandemic.<\/p>\n

Still, it\u2019s true that national foreclosure activity is up since last year \u2014 and historical context is cold comfort for any homeowners facing the possibility of losing their home. According to real estate data company ATTOM, there was a 17 percent year-over-year rise in the third quarter of 2025.<\/p>\n

In September 2025 alone one in every 3,997 housing units (or 0.025 percent) were in foreclosure proceedings vs. one in every 4,750 housing units (or .021 percent) last September. That\u2019s an increase of 20 percent from one year to the next.<\/p>\n

But compare this to February 2020 \u2014 the month before lockdowns started \u2014 when one in every 2,841 housing units (or 0.035 percent) were at some point in the foreclosure process. That\u2019s 34 percent more foreclosure activity than what we\u2019re seeing now.<\/p>\n

One thing\u2019s for sure: The pandemic left a mark on mortgage servicers that still shows to this day. Notably, the federal government instituted foreclosure moratoriums that halted progress on foreclosures from March 2020 until July 31, 2021.<\/p>\n

\u201cWhen COVID hit and incomes dropped suddenly, mortgage servicers hit pause,\u201d says Andy Manthei, associate business development manager for GreenPath, a debt counseling nonprofit. \u201cThat delayed things and opened up options for people who otherwise would have lost income and perhaps their homes.\u201d<\/p>\n

Even though the moratoriums ended over four years ago, there could be a lingering effect on the data.<\/p>\n

\u201cForeclosures can take more than a year to work their way through the process so the end of the moratoriums could still be affecting foreclosure rates to a degree,\u201d says Rob Barber, CEO of ATTOM. \u201cBut we already saw a rise in foreclosures in the two years after the moratoriums were lifted, and other economic and market factors such as higher interest rates, persistent affordability challenges and household financial strain are now likely contributing to the continued year-over-year increases.\u201d<\/p>\n

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\n Timeframe to foreclosure
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\n On average, foreclosures took 608 days in the U.S. in Q3 of 2025, according to ATTOM. However, states can vary significantly in their timeframe depending on their laws, particularly if the foreclosure process requires lengthy court involvement. For instance, in the same time period, the average foreclosure took 154 days in Texas \u2014 just shy of 5 months. But in neighboring Louisiana, it was 3,632 days, or nearly 10 years.<\/p>\n<\/p><\/div>\n

It\u2019s unnerving to see foreclosure rates rise, but keep in mind that sometimes a rise is simply a return to normal.<\/p>\n

According to Daren Blomquist, vice president of market economics for Auction.com \u2014 an auction site for foreclosures and bank-owned properties \u2014 current foreclosure activity is more about reaching equilibrium than it is about crisis.<\/p>\n

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The pandemic years were abnormal \u2014 the housing market was artificially stimulated, and foreclosures were artificially suppressed. Now we\u2019re normalizing.<\/p>\n

\u2014 Daren Blomquist<\/cite>
\n Vice president of market economics, Auction.com<\/span>\n <\/p><\/blockquote>\n

More reasons not to worry about the current foreclosure activity<\/h3>\n

There are other reasons foreclosures remain lower than before the pandemic, says Blomquist. These include:<\/p>\n