In November 2022, 30,677 properties across the U.S. received a foreclosure filing, and 3,770 foreclosures were completed during the month, up 64% from just one year ago. Though a sharp spike in foreclosures might seem daunting to homeowners, today’s market is better protected against financial crises than the housing bubble and subsequent bust leading up to the Great Recession over a decade ago, Realtor.com reports.
Today’s homeowners are backed by significant equity and a strong job market, and today’s lending practices are far less risky than they were in 2007 and 2008, meaning the current housing market isn’t likely to slip back into a foreclosure crisis even as foreclosure proceedings rise nationwide.
Mortgage delinquencies are still lower than historical averages, the ATTOM report notes, and the job market is still strong.
Another big positive is the record-high level of homeowner equity, currently at $29 trillion. About 93% of borrowers in foreclosure have equity in their homes.
“This is a complete reversal from where things stood in 2008, when 30% of all homeowners—and virtually everyone in foreclosure—were upside down on their loans,” [Rick] Sharga says.