🏡 Let’s Talk About the Real Story Behind Foreclosures

Hi there, it’s Melinda 👋

If you’ve been scrolling headlines lately, you might’ve noticed some attention-grabbing stories about foreclosures. And let’s be honest—those headlines are often written to stir up fear. But as someone who’s deeply rooted in this market and works with families like yours every day, I want to share the real story with you.

Yes, foreclosure activity has ticked up a bit this year, and that naturally raises some eyebrows. But when we look at the full picture—zooming out from the headlines—we see something much more reassuring. So let’s walk through it together.

Filings Are Up Slightly—But Still Nowhere Near 2008 Levels

First, let’s talk numbers. In the first half of 2025, foreclosure starts rose about 7%. But before we let that number set off alarms, let’s put it in perspective.

Across the country, just 0.13% of homes filed for foreclosure in the first six months of the year. That’s less than one-quarter of one percent. ✅

It means that the overwhelming majority of homeowners—more than 99%—are not in foreclosure. And just like everything else in real estate, these numbers vary depending on where you live.

📍Here’s the map that really paints the picture: it shows how foreclosure filings vary by state and region—and how remarkably low they still are.

Visual: U.S. Foreclosure Map showing regional variation

Let’s add more context: according to ATTOM, only 1 in every 758 homes had a foreclosure filing so far this year. Back in 2010, during the housing crash, that number was 1 in every 45 homes. That’s a huge difference.

So even though we’re seeing a slight increase, we’re nowhere near the crisis levels we remember from over a decade ago.

Why Today’s Market Is Completely Different

I know the word “foreclosure” can bring back memories of a really tough time in real estate. Many of us remember what happened in the lead-up to the 2008 crash—loans were being handed out with little to no documentation, and many homeowners ended up with mortgage payments they couldn’t afford. When values dropped, they were underwater, and foreclosure became the only option for too many.

But thankfully, the market we’re in today looks very different. 🛠️

Here’s why:

• Lending standards are much tighter, which means homeowners are more financially stable.

• Many homeowners have built up significant equity in their properties over the last few years.

• If someone does run into financial difficulty, they often have the option to sell their home—sometimes even at a profit—instead of going through foreclosure.

💬 Rick Sharga, Founder of CJ Patrick Company, summed it up perfectly:

“. . . 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.” (quoted under fair use)

And that’s something I’ve seen firsthand here in Connecticut. Homeowners who may have struggled in another era are now using their equity to make empowered decisions.

If you're in a tough spot yourself, know this: you're not alone, and there are options. Reach out to your mortgage company or give me a call—there are paths forward, and we can talk through them together. 💡

What This Means for You

So here’s the bottom line: even though the word “foreclosure” is making headlines, we’re not in the middle of a housing collapse. Far from it.

📈 Today’s foreclosure activity remains historically low. The market isn’t crashing—it’s adjusting. And understanding that difference matters.

If you’re keeping an eye on home values, thinking about selling, or just want to know how the market is affecting your plans, let’s connect. I’ll walk you through the real data—not just the headlines—and help you make informed, confident decisions.

Let’s Make a Plan Together

Whether you’re planning your next move or just want to understand where the market stands today, I’m here for you every step of the way.

📞 Call me at 860-985-4363 or head to melindatherealtor.com for your free consultation.
💬 Never too busy for you to be my #1 client.

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