The last time foreclosures were at this high was Q1 2020, just before government relief programs and pandemic stimulus caused them to decline.
Foreclosure filings have more than TRIPLED since the post-pandemic low.
The increase has been driven by soaring home insurance bills, property taxes, and homeowner association fees rather than mortgage defaults alone.
In 2025, the average annual home insurance bill jumped +12% YoY, to a record $2,948.
At the same time, average property tax on US single-family homes rose +3% YoY, to $4,427, also the highest on record.
Financial pressures on homeowners are surging.
Source: Boo_Randy_Revival
3 Comments
and lenders are making record profits. Once upon a time there were usury laws.
So the foreclosure rate right now isn’t horrible. Like, it’s always bad/sad, but as an isolated data point it’s really not horrible.
The problem is the trend. Defaults tick up gradually like this, then all at once.
There are absolutely no foreseeable catalysts on the horizon which would improve affordability for people. So it’s almost guaranteed foreclosures are going to increase.
Hope banks have excess liquidity to handle the defaults this time.
Never trust headlines