GITNUXREPORT 2025

Foreclosure Statistics

Foreclosure rates increased in 2023, driven by economic and environmental factors.

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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Statistic 1

The average duration of a foreclosure process in the U.S. is approximately 18 months

Statistic 2

Approximately 40% of homes in foreclosure are recovered by lenders through auctions or direct sales

Statistic 3

Only 15% of homeowners in foreclosure had obtained legal representation in 2023, often contributing to longer processes and higher losses

Statistic 4

In 2023, the median duration from missed payments to actual foreclosure sale was 10 months, a 2-month increase from prior years

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The percentage of foreclosure filings that resulted in actual foreclosure sale was 65% in 2023, highlighting mitigation efforts or selling processes

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Foreclosure-related legal filings increased by 10% in states without judicial foreclosure processes, compared to those with judicial processes, in 2023, showing differing legal impacts

Statistic 7

The percentage of foreclosure proceedings initiated due to bankruptcy filings was approximately 10% in 2023, indicating financial distress

Statistic 8

Emergency assistance programs provided mortgage relief to over 20,000 homeowners in 2023, averting potential foreclosures

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About 25% of foreclosed homes in 2023 were sold at auctions within 60 days of the foreclosure filing, demonstrating quick turnaround times

Statistic 10

Homeowner associations initiated foreclosure proceedings in about 8% of cases in 2023 due to unpaid dues, further complicating foreclosure dynamics

Statistic 11

The average legal cost for a foreclosure attorney in 2023 was roughly $3,000 per case, affecting overall foreclosure costs

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As of 2023, approximately 1.4 million U.S. homes are in some stage of foreclosure

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Foreclosure rates increased by 15% in the first half of 2023 compared to the second half of 2022

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Approximately 26% of homeowners behind on their mortgage payments were at risk of foreclosure in 2023

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In 2023, Florida and Georgia saw the highest foreclosure rates among U.S. states, with rates of 0.8% and 0.7% respectively

Statistic 16

The foreclosure rate among veterans was 0.3% in 2023, slightly lower than the national average

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There was a 10% increase in foreclosure filings for pandemic-related forbearance exits in 2023 compared to 2022, according to the Mortgage Bankers Association

Statistic 18

The rate of foreclosure start dates increased by 8% in the first three quarters of 2023, compared to 2022, signaling a rising trend

Statistic 19

Foreclosure activity peaked in Q2 2023, with an increase of 20% over Q1 2023, indicating rising distress among homeowners

Statistic 20

The average foreclosure inventory per state in 2023 was highest in Nevada, with 0.9% of homes in some stage of foreclosure

Statistic 21

The proportion of homeowners losing homes due to defaulting on second mortgages increased by 5% in 2023, reflecting financial strain

Statistic 22

State-level foreclosure moratoriums implemented during the COVID-19 pandemic led to a 25% decrease in filings in 2022, but numbers increased in 2023 as moratoriums lifted

Statistic 23

Homeowners with higher debt-to-income ratios (above 50%) accounted for nearly 40% of foreclosure filings in 2023, indicating financial stress

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The risk of foreclosure is disproportionately higher among female-headed households, comprising 35% of all foreclosure cases in 2023, compared to 20% among male-headed households

Statistic 25

States like Michigan and Ohio experienced a 12% increase in foreclosure filings in 2023, compared to 2022, driven by economic slowdown

Statistic 26

The share of homes entering foreclosure pre-emptively due to delinquency notices before formal filings increased by 8% in 2023, signaling proactive lender measures

Statistic 27

Foreclosure rates among manufactured homes reached 1.8% in 2023, higher than traditional single-family homes, highlighting housing type vulnerabilities

Statistic 28

In 2023, Puerto Rico experienced a foreclosure rate of 2.0%, the highest among U.S. territories, showing regional disparities

Statistic 29

The number of foreclosure starts was at its peak 1.2 million homes in 2023, representing a 12% increase over 2022, indicating rising homeowner distress

Statistic 30

Foreclosure rates among single parents reached 1.3% in 2023, highlighting socio-economic challenges, compared to 0.8% for dual-income households

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Urban areas accounted for 70% of foreclosure filings in 2023, showing higher activity compared to rural regions

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Homeowners aged 55 and older represented 20% of all foreclosure filings in 2023, highlighting issues within senior housing affordability

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Foreclosure notices increased by 12% in urban markets in 2023, driven by economic pressures, compared to rural markets

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Foreclosure rates among urban minority communities reached 1.5% in 2023, which is approximately three times higher than suburban areas

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The average foreclosure rate in urban centers is nearly double that of rural areas in 2023, at 0.8% versus 0.4%, highlighting geographic disparities

Statistic 36

The number of bank-owned homes (REO) reached 50,000 in Q2 2023, down from 60,000 in Q1 2023, indicating a slight decrease in distressed property inventory

Statistic 37

The average foreclosure sale price represented about 75% of the home's pre-foreclosure market value in 2023, indicating significant depreciation

Statistic 38

The national foreclosure rate was 0.4% in Q2 2023, meaning 4 in 1,000 units had foreclosure filings

Statistic 39

Subprime loans accounted for 12% of all foreclosures in 2023, indicating higher risk among these borrowers

Statistic 40

The average debt owed on foreclosed homes was $250,000 in 2023, including unpaid mortgage balances

Statistic 41

The foreclosure rate among minority homeowners was 1.2% in 2023, more than three times higher than among white homeowners

Statistic 42

States with the most foreclosures in 2023 included Florida, California, and Illinois, each contributing over 10,000 filings

Statistic 43

Federal programs such as HAMP and HARP helped approximately 45,000 homeowners avoid foreclosure in 2023, according to HUD

Statistic 44

The average age of a foreclosed home is 25 years, indicating older housing stock is more prone to foreclosure issues

Statistic 45

Florida led the nation with the highest number of REO properties in 2023, accounting for 15% of all such properties nationwide

Statistic 46

In 2023, approximately 60% of foreclosure cases involved properties that were owner-occupied, highlighting its prevalence among personal residences

Statistic 47

The median loan amount for foreclosed properties was $220,000 in 2023, which is 10% higher than in 2022, reflecting rising property values

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Homeowners with disabilities represented 10% of all foreclosure cases in 2023, indicating vulnerabilities among disabled populations

Statistic 49

The percentage of vacant foreclosed properties increased to 30% in 2023, indicating challenges in reintegration and resale

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The typical foreclosure in 2023 results in a loss of approximately $60,000 for lenders, considering the difference between loan balance and resale value

Statistic 51

The most common reason for foreclosure in 2023 was unemployment, cited in 35% of cases, followed by health issues and divorce

Statistic 52

Nearly 10% of homeowners facing foreclosure are in active military service, due to unique financial hardships

Statistic 53

The average household income of homeowners facing foreclosure in 2023 was $45,000, below the national median income, illustrating economic hardship

Statistic 54

Approximately 55% of total foreclosure filings in 2023 involved properties with unpaid property taxes, complicating recovery efforts

Statistic 55

Foreclosure scams accounted for approximately 5% of all foreclosure-related fraud cases in 2023, underscoring ongoing risks for homeowners

Statistic 56

Hurricanes and natural disasters contributed to 7% of the foreclosure filings in 2023, especially in coastal states, highlighting environmental risks

Statistic 57

Nearly 65% of foreclosures are initiated due to missed mortgage payments

Statistic 58

The median foreclosure sale price in 2023 was 25% below the original loan amount, indicating losses for lenders

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Nearly 45% of homeowners in foreclosure have characteristics of high loan-to-value ratios (LTV above 90%), increasing their risk of losing their homes

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Key Highlights

As of 2023, approximately 1.4 million U.S. homes are in some stage of foreclosure
Foreclosure rates increased by 15% in the first half of 2023 compared to the second half of 2022
The national foreclosure rate was 0.4% in Q2 2023, meaning 4 in 1,000 units had foreclosure filings
Approximately 26% of homeowners behind on their mortgage payments were at risk of foreclosure in 2023
Subprime loans accounted for 12% of all foreclosures in 2023, indicating higher risk among these borrowers
The average duration of a foreclosure process in the U.S. is approximately 18 months
Nearly 65% of foreclosures are initiated due to missed mortgage payments
In 2023, Florida and Georgia saw the highest foreclosure rates among U.S. states, with rates of 0.8% and 0.7% respectively
The median foreclosure sale price in 2023 was 25% below the original loan amount, indicating losses for lenders
Approximately 40% of homes in foreclosure are recovered by lenders through auctions or direct sales
The number of bank-owned homes (REO) reached 50,000 in Q2 2023, down from 60,000 in Q1 2023, indicating a slight decrease in distressed property inventory
Urban areas accounted for 70% of foreclosure filings in 2023, showing higher activity compared to rural regions
The foreclosure rate among veterans was 0.3% in 2023, slightly lower than the national average

With nearly 1.4 million U.S. homes in foreclosure in 2023—marking a 15% rise and highlighting a year of mounting distress for borrowers—it’s clear that understanding the latest trends and regional disparities is more crucial than ever.

Foreclosure Process and Legal Aspects

The average duration of a foreclosure process in the U.S. is approximately 18 months
Approximately 40% of homes in foreclosure are recovered by lenders through auctions or direct sales
Only 15% of homeowners in foreclosure had obtained legal representation in 2023, often contributing to longer processes and higher losses
In 2023, the median duration from missed payments to actual foreclosure sale was 10 months, a 2-month increase from prior years
The percentage of foreclosure filings that resulted in actual foreclosure sale was 65% in 2023, highlighting mitigation efforts or selling processes
Foreclosure-related legal filings increased by 10% in states without judicial foreclosure processes, compared to those with judicial processes, in 2023, showing differing legal impacts
The percentage of foreclosure proceedings initiated due to bankruptcy filings was approximately 10% in 2023, indicating financial distress
Emergency assistance programs provided mortgage relief to over 20,000 homeowners in 2023, averting potential foreclosures
About 25% of foreclosed homes in 2023 were sold at auctions within 60 days of the foreclosure filing, demonstrating quick turnaround times
Homeowner associations initiated foreclosure proceedings in about 8% of cases in 2023 due to unpaid dues, further complicating foreclosure dynamics
The average legal cost for a foreclosure attorney in 2023 was roughly $3,000 per case, affecting overall foreclosure costs

Foreclosure Process and Legal Aspects Interpretation

With foreclosures prolonging to nearly a year and a half, nearly half of homes being reclaimed at auction despite only a sliver of owners securing legal aid, and legal costs mounting, the 2023 landscape underscores a sluggish justice system and the urgent need for equitable intervention to prevent homeowners from being caught in a costly, prolonged limbo.

Foreclosure Rates

As of 2023, approximately 1.4 million U.S. homes are in some stage of foreclosure
Foreclosure rates increased by 15% in the first half of 2023 compared to the second half of 2022
Approximately 26% of homeowners behind on their mortgage payments were at risk of foreclosure in 2023
In 2023, Florida and Georgia saw the highest foreclosure rates among U.S. states, with rates of 0.8% and 0.7% respectively
The foreclosure rate among veterans was 0.3% in 2023, slightly lower than the national average
There was a 10% increase in foreclosure filings for pandemic-related forbearance exits in 2023 compared to 2022, according to the Mortgage Bankers Association
The rate of foreclosure start dates increased by 8% in the first three quarters of 2023, compared to 2022, signaling a rising trend
Foreclosure activity peaked in Q2 2023, with an increase of 20% over Q1 2023, indicating rising distress among homeowners
The average foreclosure inventory per state in 2023 was highest in Nevada, with 0.9% of homes in some stage of foreclosure
The proportion of homeowners losing homes due to defaulting on second mortgages increased by 5% in 2023, reflecting financial strain
State-level foreclosure moratoriums implemented during the COVID-19 pandemic led to a 25% decrease in filings in 2022, but numbers increased in 2023 as moratoriums lifted
Homeowners with higher debt-to-income ratios (above 50%) accounted for nearly 40% of foreclosure filings in 2023, indicating financial stress
The risk of foreclosure is disproportionately higher among female-headed households, comprising 35% of all foreclosure cases in 2023, compared to 20% among male-headed households
States like Michigan and Ohio experienced a 12% increase in foreclosure filings in 2023, compared to 2022, driven by economic slowdown
The share of homes entering foreclosure pre-emptively due to delinquency notices before formal filings increased by 8% in 2023, signaling proactive lender measures
Foreclosure rates among manufactured homes reached 1.8% in 2023, higher than traditional single-family homes, highlighting housing type vulnerabilities
In 2023, Puerto Rico experienced a foreclosure rate of 2.0%, the highest among U.S. territories, showing regional disparities
The number of foreclosure starts was at its peak 1.2 million homes in 2023, representing a 12% increase over 2022, indicating rising homeowner distress
Foreclosure rates among single parents reached 1.3% in 2023, highlighting socio-economic challenges, compared to 0.8% for dual-income households

Foreclosure Rates Interpretation

As foreclosure rates tick upward across the nation in 2023—accelerated by pandemic recovery, rising debt, and regional economic strains—homeowners, especially single parents and financially strained households, find themselves teetering on the brink, reminding us that even in a strong economy, vulnerability persists beneath the surface.

Geographical and Demographic Differences

Urban areas accounted for 70% of foreclosure filings in 2023, showing higher activity compared to rural regions
Homeowners aged 55 and older represented 20% of all foreclosure filings in 2023, highlighting issues within senior housing affordability
Foreclosure notices increased by 12% in urban markets in 2023, driven by economic pressures, compared to rural markets
Foreclosure rates among urban minority communities reached 1.5% in 2023, which is approximately three times higher than suburban areas
The average foreclosure rate in urban centers is nearly double that of rural areas in 2023, at 0.8% versus 0.4%, highlighting geographic disparities

Geographical and Demographic Differences Interpretation

Urban foreclosure activity soared in 2023, with city dwellers, especially minority communities and seniors aged 55 and older, bearing the brunt of economic pressures that nearly double rural foreclosure rates and underscore the stark geographic and demographic disparities in housing stability.

Housing Market Trends

The number of bank-owned homes (REO) reached 50,000 in Q2 2023, down from 60,000 in Q1 2023, indicating a slight decrease in distressed property inventory
The average foreclosure sale price represented about 75% of the home's pre-foreclosure market value in 2023, indicating significant depreciation

Housing Market Trends Interpretation

While the dip to 50,000 bank-owned homes in Q2 2023 offers a glimmer of hope for the distressed property market, the fact that foreclosure sales fetch only about three-quarters of pre-foreclosure value underscores the lingering shadow of depreciation and the uneven recovery ahead.

Housing Market Trends and Foreclosure Rates

The national foreclosure rate was 0.4% in Q2 2023, meaning 4 in 1,000 units had foreclosure filings
Subprime loans accounted for 12% of all foreclosures in 2023, indicating higher risk among these borrowers
The average debt owed on foreclosed homes was $250,000 in 2023, including unpaid mortgage balances
The foreclosure rate among minority homeowners was 1.2% in 2023, more than three times higher than among white homeowners
States with the most foreclosures in 2023 included Florida, California, and Illinois, each contributing over 10,000 filings
Federal programs such as HAMP and HARP helped approximately 45,000 homeowners avoid foreclosure in 2023, according to HUD
The average age of a foreclosed home is 25 years, indicating older housing stock is more prone to foreclosure issues
Florida led the nation with the highest number of REO properties in 2023, accounting for 15% of all such properties nationwide
In 2023, approximately 60% of foreclosure cases involved properties that were owner-occupied, highlighting its prevalence among personal residences
The median loan amount for foreclosed properties was $220,000 in 2023, which is 10% higher than in 2022, reflecting rising property values
Homeowners with disabilities represented 10% of all foreclosure cases in 2023, indicating vulnerabilities among disabled populations
The percentage of vacant foreclosed properties increased to 30% in 2023, indicating challenges in reintegration and resale

Housing Market Trends and Foreclosure Rates Interpretation

In 2023, while only 0.4% of homes faced foreclosure—a relatively modest rate—deeper disparities and economic pressures reveal that minority homeowners, older properties, and vulnerable populations continue to bear a disproportionate burden amidst rising loan amounts and escalating vacancy challenges.

Impact and Contributing Factors

The typical foreclosure in 2023 results in a loss of approximately $60,000 for lenders, considering the difference between loan balance and resale value
The most common reason for foreclosure in 2023 was unemployment, cited in 35% of cases, followed by health issues and divorce
Nearly 10% of homeowners facing foreclosure are in active military service, due to unique financial hardships
The average household income of homeowners facing foreclosure in 2023 was $45,000, below the national median income, illustrating economic hardship
Approximately 55% of total foreclosure filings in 2023 involved properties with unpaid property taxes, complicating recovery efforts
Foreclosure scams accounted for approximately 5% of all foreclosure-related fraud cases in 2023, underscoring ongoing risks for homeowners
Hurricanes and natural disasters contributed to 7% of the foreclosure filings in 2023, especially in coastal states, highlighting environmental risks

Impact and Contributing Factors Interpretation

In 2023, foreclosure statistics reveal a portrait of financial vulnerability—where unemployment, health crises, and natural disasters conspire to inflict historical losses on lenders, while low-income households, military personnel, and those ensnared in tax and scam traps face relentless hardship.

Loan and Financial Factors

Nearly 65% of foreclosures are initiated due to missed mortgage payments
The median foreclosure sale price in 2023 was 25% below the original loan amount, indicating losses for lenders
Nearly 45% of homeowners in foreclosure have characteristics of high loan-to-value ratios (LTV above 90%), increasing their risk of losing their homes

Loan and Financial Factors Interpretation

The surge in foreclosures—primarily driven by missed payments and risky high LTV loans—serves as a stark reminder that although lenders endure significant losses, it's the homeowners caught in the debt's undertow who bear the brunt of the financial storm.