If you’ve seen the headlines about foreclosures rising in 2025, you may be wondering if this is the start of another housing market crash. It’s a fair concern—after all, many people remember the painful wave of foreclosures during the 2008 financial crisis.
But here’s the good news: today’s market looks nothing like it did back then.
Foreclosures Today vs. the 2008 Housing Crash
According to ATTOM, during the housing crash between 2007 and 2011, more than 9 million homeowners went through some type of distressed sale. By comparison, in 2024, there were just over 300,000 foreclosures nationwide.
Yes, foreclosures are ticking up recently—but the numbers are still dramatically lower than what we saw during the last crash.
Why Experts Don’t Expect a Wave of Foreclosures
One of the key indicators analysts watch closely is mortgage delinquencies—loans that are more than 30 days past due. Rising delinquencies can be an early warning sign of more foreclosures ahead.
But the latest data shows delinquencies are flat compared to last year, which suggests stability.
Still, there’s one area worth noting. According to Marina Walsh, Vice President of Industry Analysis at the Mortgage Bankers Association:
“While overall mortgage delinquencies are relatively flat compared to last year, the composition has changed.”
Specifically, FHA loans make up the largest share of new delinquencies right now. That’s because FHA borrowers often have smaller down payments and may be more sensitive to changes in the economy.
Even so, delinquency rates for conventional loans, VA loans, and USDA loans remain low and steady. During the 2008 crash, all loan types saw high delinquency rates. That’s simply not the case today.
As ResiClub puts it:
“The recent uptick in mortgage delinquency seems to be concentrated among FHA borrowers, however, mortgage performance remains very solid when viewed in light of the twenty-year history of our data.”
Where FHA Loans Are Most Common
Nationwide, FHA loans account for about 12% of all mortgages. But some regions, especially in the South, have higher concentrations of FHA loans.
The Federal Reserve Bank of New York explains:
“Looking at geographic concentrations of loans, recent data indicate that a higher proportion of mortgage balances are delinquent in many of the southern states . . . we see that higher delinquency rates coincide with a higher share of FHA loans across states.”
Even in these areas, delinquency and foreclosure rates remain well below the levels seen during the housing crash.
What To Do if You’re Facing Financial Hardship
No homeowner wants to face foreclosure. But if you’re struggling with your mortgage payments, you have options:
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Contact your lender immediately. Many lenders offer repayment plans or loan modifications to help you get back on track.
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Explore selling your home. With home values still elevated compared to five years ago, many homeowners have substantial equity. Selling could help you avoid foreclosure altogether.
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Talk to a local real estate professional. An experienced agent can help you understand your equity position and whether selling makes sense for your situation.
Bottom Line
Yes, foreclosures are rising slightly in 2025, but this is not 2008 all over again. Delinquency rates remain stable overall, and most loan types are performing well. Experts agree: the housing market is on much stronger footing than it was during the last crash.
If you’re concerned about foreclosure—or just want to stay on top of the latest real estate market trends—connect with a trusted local real estate agent or lender. Having a professional by your side ensures you’ll always have the most accurate information to make smart financial decisions.
