{"id":6063,"date":"2024-10-24T05:30:00","date_gmt":"2024-10-24T10:30:00","guid":{"rendered":"https:\/\/nwiloanguy.com\/blog\/why-todays-foreclosure-numbers-wont-trigger-a-crash\/"},"modified":"2024-10-24T05:30:00","modified_gmt":"2024-10-24T10:30:00","slug":"why-todays-foreclosure-numbers-wont-trigger-a-crash","status":"publish","type":"post","link":"https:\/\/nwiloanguy.com\/blog\/why-todays-foreclosure-numbers-wont-trigger-a-crash\/","title":{"rendered":"Why Today\u2019s Foreclosure Numbers Won\u2019t Trigger a Crash"},"content":{"rendered":"<p><img data-recalc-dims=\"1\" decoding=\"async\"  src=\"https:\/\/i0.wp.com\/files.keepingcurrentmatters.com\/KeepingCurrentMatters\/content\/images\/20241023\/20241024-Why-Today-s-Foreclosure-Numbers-Won-t-Trigger-a-Crash-original.png?ssl=1\" alt=\"Why Today\u2019s Foreclosure Numbers Won\u2019t Trigger a Crash Simplifying The Market\" loading=\"lazy\" style=\"margin-bottom: 5px;clear: both;max-width: 100%\" \/><\/p>\n<p>With everything feeling more expensive these days, it\u2019s natural to worry about how rising costs might impact the <a href=\"https:\/\/www.simplifyingthemarket.com\/2024\/10\/21\/what-to-expect-from-mortgage-rates-and-home-prices-in-2025\/?a=375140-ca8522ad04357da9549c08492a932f70\" rel=\"noopener noreferrer\" target=\"_blank\">housing market<\/a>. Many people are concerned that high prices and tighter budgets could cause more homeowners to fall behind on their mortgage payments, leading to a wave of foreclosures.<\/p>\n<p>But before you start worrying about a housing <a href=\"https:\/\/www.simplifyingthemarket.com\/2024\/10\/09\/two-reasons-why-the-housing-market-wont-crash\/?a=375140-ca8522ad04357da9549c08492a932f70\" rel=\"noopener noreferrer\" target=\"_blank\">market crash<\/a>, here\u2019s a look at what\u2019s really happening. And the good news is: the latest foreclosure data shows there\u2019s no wave on the horizon.<\/p>\n<h4><strong>How Today\u2019s Market Is Different from 2008<\/strong><\/h4>\n<p>Let\u2019s ease those fears by looking at the bigger picture. The graph below uses <a href=\"https:\/\/www.attomdata.com\/news\/most-recent\/q3-2024-foreclosure-market-report\/\" rel=\"noopener noreferrer\" target=\"_blank\">research<\/a> from <em>ATTOM<\/em>, a property data provider, to show that&nbsp;the number of homeowners starting the foreclosure process is nowhere near what we saw coming out of 2008. Back then, there was a big spike in how many foreclosures were happening. Today, the number is much lower \u2013 it&#8217;s even dropped some in the latest report. There\u2019s a big difference between what\u2019s happening now, and what happened when the housing market crashed (<em>see graph below<\/em>):<\/p>\n<p><a href=\"https:\/\/i0.wp.com\/files.keepingcurrentmatters.com\/KeepingCurrentMatters\/content\/images\/20241023\/20241024-Foreclosure-Activity-Still-Far-Below-Levels-Seen-During-the-Crash-original.png?ssl=1\" rel=\"noopener noreferrer\" target=\"_blank\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/files.keepingcurrentmatters.com\/KeepingCurrentMatters\/content\/images\/20241023\/20241024-Foreclosure-Activity-Still-Far-Below-Levels-Seen-During-the-Crash-original.png?ssl=1\" alt=\"a graph of a fall\"><\/a>Just in case you\u2019re wondering why the number of foreclosure filings has ticked up slightly since 2020 and 2021, here\u2019s what you need to know. During those years, there was a moratorium (<em>shown in white<\/em>) designed to help millions of homeowners avoid foreclosure in challenging times. That\u2019s why the numbers for just a few years ago were so incredibly low. If you look further back, it\u2019s clear overall foreclosure filings are down significantly.<\/p>\n<p>And if you\u2019re wondering: how are there fewer foreclosures today, even when the cost of living has gotten so pricey? Here\u2019s your answer. One of the main reasons is that homeowners today have a lot <a href=\"https:\/\/www.simplifyingthemarket.com\/2024\/09\/09\/the-surprising-amount-of-home-equity-youve-gained-over-the-years\/?a=375140-ca8522ad04357da9549c08492a932f70\" rel=\"noopener noreferrer\" target=\"_blank\">more equity<\/a> built up in their homes than they did back in 2008. As an article from <em>Bankrate <\/em>explains:<\/p>\n<blockquote><p><em>\u201cIn the years after the housing crash, millions of foreclosures flooded the housing market, depressing prices. That\u2019s not the case now. Most homeowners have a comfortable equity cushion in their homes.\u201d&nbsp;<\/em><\/p><\/blockquote>\n<p>This equity acts like a safety net and is allowing many homeowners to avoid going into foreclosure if they\u2019re facing financial hardships.<strong> <\/strong>Even if someone is struggling to make their monthly payments, they may be able to sell their home and avoid foreclosure altogether. This is a far cry from the conditions during the crash when homeowners owed more on their mortgages than their homes were worth.<\/p>\n<h4><strong>What\u2019s Ahead for the Housing Market<\/strong><\/h4>\n<p>It\u2019s true that today\u2019s higher cost of living across the board is a challenge for many people right now. But this doesn\u2019t mean we\u2019re heading for a surge in foreclosures. <\/p>\n<p>The equity cushion that people have is helping to keep foreclosure filings low. Today\u2019s homeowners have more options to avoid going into foreclosure.<\/p>\n<h3>Bottom Line<\/h3>\n<p>Yes, everyday costs for gas and food have gotten more expensive\u2014but that doesn\u2019t mean the housing market is on the brink of another foreclosure crisis. Data shows the market is far from a foreclosure wave. Homeowners today are in a much stronger financial position than they were during the 2008 crash, thanks to significant equity.&nbsp;<\/p>\n<p>Source: New feed<\/p>\n","protected":false},"excerpt":{"rendered":"<p>With everything feeling more expensive these days, it\u2019s natural to worry about how rising costs might impact the housing market. Many people are concerned that high prices and tighter budgets could cause more homeowners to fall behind on their mortgage payments, leading to a wave of foreclosures. But before you start worrying about a housing [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6064,"comment_status":"false","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10157519356927224_105287467588662":"","twitter_15771620_15771620":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[54],"class_list":{"0":"post-6063","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-local-info","8":"tag-100-financing","9":"entry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Why Today\u2019s Foreclosure Numbers Won\u2019t Trigger a Crash&#8212;NWI Loan Guy Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nwiloanguy.com\/blog\/why-todays-foreclosure-numbers-wont-trigger-a-crash\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Today\u2019s Foreclosure Numbers Won\u2019t Trigger a Crash&#8212;NWI Loan Guy Blog\" \/>\n<meta property=\"og:description\" content=\"With everything feeling more expensive these days, it\u2019s natural to worry about how rising costs might impact the housing market. Many people are concerned that high prices and tighter budgets could cause more homeowners to fall behind on their mortgage payments, leading to a wave of foreclosures. But before you start worrying about a housing [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/nwiloanguy.com\/blog\/why-todays-foreclosure-numbers-wont-trigger-a-crash\/\" \/>\n<meta property=\"og:site_name\" content=\"NWI Loan Guy Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/NWIHomeLoans\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/NWIHomeLoans\" \/>\n<meta property=\"article:published_time\" content=\"2024-10-24T10:30:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/files.keepingcurrentmatters.com\/KeepingCurrentMatters\/content\/images\/20241023\/20241024-Why-Today-s-Foreclosure-Numbers-Won-t-Trigger-a-Crash-original.png\" \/>\n<meta name=\"author\" content=\"Scott\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Scott\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" 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