The number of US property foreclosure filings rose 14% last year compared to the previous year, according to newly released data. The increase marks a notable shift after several years of relatively low foreclosure activity, driven by pandemic-era protections and a strong housing market. Filings, which include default notices, scheduled auctions, and bank repossessions, climbed across most states.
What the numbers show
The 14% year-over-year jump brings the total filings to just over 1.2 million properties, according to the data. While that's still well below the peaks seen during the 2008 financial crisis, the uptick signals that more homeowners are falling behind on mortgage payments. The increase was broad-based, with no single region accounting for the bulk of the rise.
Lenders initiated foreclosure proceedings on roughly 400,000 properties, a 12% increase from the prior year. Completed foreclosures — where the lender actually takes possession — rose 8%. Those numbers suggest the pipeline of distressed properties is growing, though not at a crisis pace.
Possible reasons behind the rise
Several factors likely contributed. The end of federal and state foreclosure moratoriums, which expired last year, allowed lenders to resume actions that had been delayed. At the same time, higher interest rates and persistent inflation have stretched household budgets, making it harder for some borrowers to keep up with payments. The data doesn't break out cause by demographic or loan type, so it's impossible to pin the rise on any single group.
Another piece of the puzzle: many pandemic-era forbearance programs have run their course. Borrowers who entered those programs may have exited without enough savings or income to resume full payments. The data doesn't track forbearance outcomes directly, but the timing aligns.
Who's affected most
While the data doesn't name specific states or cities, foreclosure filings tend to cluster in areas with high unemployment or rapidly rising home prices relative to incomes. Lower-income homeowners and those with adjustable-rate mortgages are generally more vulnerable, the data suggests, though no breakdown by income bracket is included in the report. Renters in foreclosed properties also face displacement, but those numbers aren't captured in the filing count.
The report didn't provide demographic details, so the full picture remains unclear.
What happens next
Foreclosure filings typically continue rising in the early months of each year as lenders catch up from holiday lulls. The next data release, due in three months, will show whether the 14% increase is the start of a longer trend or just a one-year blip. For now, housing advocates and lenders alike are watching closely — but without more granular numbers, it's tough to say how much further filings could climb.
