U.S. Foreclosure Filings Rise as Market Normalizes Post-Pandemic

Foreclosure activity in the U.S. housing market experienced a notable increase in November 2025, with filings jumping 21% and completed foreclosures rising 26% compared to the previous year. This rise continues a nine-month trend but reflects a normalization following historically low foreclosure rates during the pandemic period when moratoriums were in place rather than signaling an impending crisis. Experts highlight that the previous low baseline means that even a significant percentage increase remains below concerning levels seen in past housing downturns. Delaware, South Carolina, and Nevada reported the highest state foreclosure rates, while major metro areas like Philadelphia and Las Vegas topped the list regionally. The current foreclosure rates remain well below historic peaks, aided by increased homeowner equity due to the pandemic-driven housing price surge, which provides a financial cushion for many at-risk homeowners. Despite rising economic pressures—including inflation, property tax hikes, and surging homeowners insurance costs—the robust equity levels enable many to sell their properties rather than face foreclosure. However, ongoing financial stress is prompting some middle- and upper-middle-class households to adjust their lifestyles after prolonged difficulties. Industry experts expect the upward trend in foreclosure filings to persist into 2026 but do not foresee a repeat of the 2008 housing crisis, attributing this to enhanced consumer protections, more stringent lender standards post-Dodd-Frank, and increased lender willingness to collaborate with troubled borrowers. For homeowners struggling with mortgage payments, early engagement with lenders to explore options like forbearance or state assistance programs is recommended to mitigate the risk of foreclosure. This proactive approach reflects broader industry trends emphasizing borrower outreach and flexible solutions compared to previous downturns. Overall, the current foreclosure landscape signals a market adjusting from abnormal pandemic conditions toward typical cyclical patterns without suggesting systemic instability.