Foreclosures just jumped 21% this year. Is this 2008 all over again?
I've had more clients ask me this exact question in the past two weeks than almost any other topic all year, so today I sat down with the actual data — not the headline, the underlying numbers — and walked through what's really happening versus what happened during the Great Recession.
I've had more clients ask me this exact question in the past two weeks than almost any other topic all year, so today I sat down with the actual data — not the headline, the underlying numbers — and walked through what's really happening versus what happened during the Great Recession.
Here's the short version: the headline is technically true and the fear is completely understandable, but the full picture tells a very different story. We're still running about 87% below the 2010 foreclosure peak. Home equity nationally just hit a record 18 trillion dollars. Less than 4% of homes are seriously underwater today compared to roughly a quarter of all homeowners back in 2008. And foreclosures are actually processing faster than they were even in the calm pre-pandemic year of 2019, which is usually a sign of a healthy, orderly market rather than a crisis brewing underneath the surface.
But I'm not going to stand here and tell you everything is perfect everywhere, because it isn't. Texas and Florida are carrying almost 40% of the nation's underwater homeowners between them right now, and if you bought in Austin, San Antonio, or coastal Florida in 2022 or 2023 with a low down payment, especially on an FHA or VA loan, you are the group actually feeling some real pressure. So today's episode is both things at once: the reassurance that this is not 2008, and the honest heads-up about exactly who should be paying closer attention right now.
If you're worried about where you stand, or you just want someone to walk through your specific numbers instead of guessing from a headline, text MOM to 844-935-3634 and let's talk it through together.
Mortgage Mom Radio is live every Wednesday at 3PM PT. www.mortgagemomradio.com questions@mortgagemomradio.com (844) 935-3634
Debbie Marcoux — NMLS #237926 Licensed in AZ, CA, CO, FL, GA, HI, ID, IL, NV, NC, OR, TN, TX, WA Equal Housing Lender · This is educational content, not a rate quote.
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