The U.S. Foreclosure Map You Need To See

by Melanie Gundersheim

If you’re tracking the pulse of the housing market, foreclosure activity is a key metric that deserves your attention. While overall numbers are still far below the peaks of the 2008 housing crisis, a noticeable uptick in foreclosure filings has begun to reshape certain local markets across the U.S.

What’s Driving the Trend?

A mix of factors is contributing to this shift:

Higher interest rates are making mortgage payments more expensive for adjustable-rate borrowers.
Inflation continues to squeeze household budgets, leaving less room for unexpected expenses.
The end of pandemic-era protections means some homeowners are no longer shielded from default proceedings.

Where Are Foreclosures Rising?

Although foreclosure rates remain low on a national scale, there are pockets where activity is spiking:

Midwestern and Southern states are seeing some of the highest foreclosure rates per capita.
Rust Belt cities are experiencing a resurgence in distressed properties, often tied to job market fluctuations and aging housing stock.
Certain Western metros that saw rapid price appreciation during the pandemic boom are now showing signs of correction.

Why It Matters

Even if you’re not directly impacted, rising foreclosure numbers can affect:

Local home values
Buyer competition
Rental market dynamics
Investment opportunities in distressed properties

What This Means for You

If you're a buyer, foreclosures may present an opportunity—but timing and due diligence are crucial. If you're a homeowner, it’s important to stay proactive with your mortgage and stay informed about neighborhood trends.

And if you're an investor or real estate professional, now’s the time to pay close attention to local data and market shifts. Foreclosure activity often signals broader economic changes—and early awareness can give you a strategic advantage.

Want help understanding what’s happening in your zip code? Reach out, and we’ll talk about local insights.