GITNUXREPORT 2025

Home Foreclosure Statistics

U.S. foreclosure rates increased in 2023, especially among vulnerable homeowners.

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 foreclosure rate among African American homeowners is roughly twice that of white homeowners.

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Young homeowners aged 25-34 have a foreclosure rate twice as high as homeowners aged 55 and above.

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Approximately 32% of homeowners in foreclosure in 2023 had a history of missed payments exceeding 90 days.

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Nearly 50% of troubled homeowners who faced foreclosure had an income below 80% of the area median.

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The most common reason for foreclosure is loss of employment, accounting for about 55% of cases.

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The median amount owed on homes in foreclosure was approximately $250,000 in 2023.

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The average equity loss for homeowners during foreclosure proceedings was around 20%, leading to reduced chances of recovery.

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The average loan-to-value (LTV) ratio at the time of foreclosure was approximately 85% in 2023.

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Foreclosure prevention programs led to a decline of 22% in foreclosure filings in the last quarter of 2022.

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The national foreclosure rate was 0.36% in Q1 2023, up from 0.22% a year earlier.

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The foreclosure rate among subprime mortgages was nearly three times higher than prime mortgages in 2022.

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The average time to complete a foreclosure in the U.S. is about 12 months.

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About 60% of homes foreclosed in 2022 were due to unpaid mortgage payments, not other reasons.

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The total number of homes in foreclosure in the U.S. was over 24,000 in March 2023.

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The foreclosure crisis of the late 2000s reached over 2 million homes in foreclosure at its peak in 2010.

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In 2022, California had approximately 8,000 homes in foreclosure, a 28% increase from 2021.

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Nearly 70% of foreclosures in 2022 were on homes valued under $300,000.

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The percentage of homes in foreclosure with unpaid property taxes was about 20% in 2022.

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In 2023, the foreclosure rate for manufactured homes was approximately 0.45%, higher than traditional site-built homes.

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About 15% of all US homes in foreclosure are vacant properties.

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The top three causes of mortgage default leading to foreclosure are unemployment, medical expenses, and adjustable-rate mortgage resets.

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Historically, the foreclosure rate in the U.S. peaked during the economic downturn of 2010, reaching over 4%.

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The percentage of foreclosure notices that proceed to actual sale is approximately 65%.

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In 2022, approximately 227,000 U.S. homes were foreclosed, representing a 16% increase from the previous year.

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Approximately 1.5 million homeowners are at risk of losing their homes due to overdue payments as of mid-2023.

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Foreclosure filings in Florida increased by 34% in Q1 2023 compared to Q1 2022.

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Rental properties are also vulnerable, with a 7% increase in sheriff's sales of rental homes in 2022.

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Nearly 9% of all homeowner delinquency and foreclosure filings in 2022 involved FHA-backed loans.

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The median foreclosure sale price was approximately $210,000 in 2023.

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Approximately 1 in 50 homes with VA loans experienced foreclosure proceedings in 2023.

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The average nationwide delinquency rate for mortgages was 2.5% in April 2023.

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Foreclosure sales through sheriff's or auction sales represented approximately 25% of all foreclosure completions in 2022.

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The majority of foreclosures in 2022 involved single-family homes, accounting for roughly 80% of cases.

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The percentage of homes foreclosed upon after a delinquency of 90+ days was 65% in 2022.

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The number of properties facing foreclosure in rural areas increased by 18% in 2022.

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Foreclosure auction prices tend to be 20-30% below market value of comparable properties.

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Lower-income neighborhoods experienced foreclosure rates nearly twice as high as higher-income areas in 2022.

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Mortgage modifications reduced foreclosure rates by approximately 15% in 2022.

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The COVID-19 pandemic led to a temporary halt in foreclosures, which resumed fully by mid-2021.

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The FHA's short-term loss mitigation programs prevented an estimated 10,000 foreclosure completions in 2022.

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States like New York and New Jersey have the highest foreclosure rates, exceeding 0.7% in 2023.

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The average length of stay in foreclosure before sale varies by state, ranging from 6 to 18 months.

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45% of all foreclosure notices are filed in just five states: Florida, California, Texas, Georgia, and Illinois.

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Key Highlights

In 2022, approximately 227,000 U.S. homes were foreclosed, representing a 16% increase from the previous year.
The national foreclosure rate was 0.36% in Q1 2023, up from 0.22% a year earlier.
The foreclosure rate among subprime mortgages was nearly three times higher than prime mortgages in 2022.
Approximately 1.5 million homeowners are at risk of losing their homes due to overdue payments as of mid-2023.
The average time to complete a foreclosure in the U.S. is about 12 months.
States like New York and New Jersey have the highest foreclosure rates, exceeding 0.7% in 2023.
Foreclosure filings in Florida increased by 34% in Q1 2023 compared to Q1 2022.
About 60% of homes foreclosed in 2022 were due to unpaid mortgage payments, not other reasons.
The total number of homes in foreclosure in the U.S. was over 24,000 in March 2023.
The foreclosure rate among African American homeowners is roughly twice that of white homeowners.
Rental properties are also vulnerable, with a 7% increase in sheriff's sales of rental homes in 2022.
Nearly 9% of all homeowner delinquency and foreclosure filings in 2022 involved FHA-backed loans.
The median foreclosure sale price was approximately $210,000 in 2023.

As millions of Americans face rising foreclosure rates amid economic uncertainty, recent statistics reveal alarming trends—including a 16% increase in home foreclosures in 2022 and disparities that disproportionately affect vulnerable communities—highlighting the urgent need to understand and address this growing crisis.

Demographics and Homeowner Profiles

The foreclosure rate among African American homeowners is roughly twice that of white homeowners.
Young homeowners aged 25-34 have a foreclosure rate twice as high as homeowners aged 55 and above.
Approximately 32% of homeowners in foreclosure in 2023 had a history of missed payments exceeding 90 days.
Nearly 50% of troubled homeowners who faced foreclosure had an income below 80% of the area median.
The most common reason for foreclosure is loss of employment, accounting for about 55% of cases.

Demographics and Homeowner Profiles Interpretation

These stark statistics reveal that economic instability continues to disproportionately burden African American and young homeowners, with job loss and prior payment struggles fueling a foreclosure crisis that underscores persistent inequalities and the urgent need for targeted financial resilience support.

Financial Metrics and Loan Characteristics

The median amount owed on homes in foreclosure was approximately $250,000 in 2023.
The average equity loss for homeowners during foreclosure proceedings was around 20%, leading to reduced chances of recovery.
The average loan-to-value (LTV) ratio at the time of foreclosure was approximately 85% in 2023.

Financial Metrics and Loan Characteristics Interpretation

With median foreclosure debts at $250,000 and homeowners losing about one-fifth of their equity, the 85% loan-to-value ratio underscores how swiftly financial stability can unravel when the market turns, turning homeowners’ dreams into difficult lessons in leverage.

Foreclosure Prevention and Foreclosure Rates

Foreclosure prevention programs led to a decline of 22% in foreclosure filings in the last quarter of 2022.

Foreclosure Prevention and Foreclosure Rates Interpretation

Thanks to foreclosure prevention programs, the foreclosure wave receded by 22% in late 2022, proving that proactive measures can turn the tide against home losing battles.

Foreclosure Rates

The national foreclosure rate was 0.36% in Q1 2023, up from 0.22% a year earlier.
The foreclosure rate among subprime mortgages was nearly three times higher than prime mortgages in 2022.
The average time to complete a foreclosure in the U.S. is about 12 months.
About 60% of homes foreclosed in 2022 were due to unpaid mortgage payments, not other reasons.
The total number of homes in foreclosure in the U.S. was over 24,000 in March 2023.
The foreclosure crisis of the late 2000s reached over 2 million homes in foreclosure at its peak in 2010.
In 2022, California had approximately 8,000 homes in foreclosure, a 28% increase from 2021.
Nearly 70% of foreclosures in 2022 were on homes valued under $300,000.
The percentage of homes in foreclosure with unpaid property taxes was about 20% in 2022.
In 2023, the foreclosure rate for manufactured homes was approximately 0.45%, higher than traditional site-built homes.
About 15% of all US homes in foreclosure are vacant properties.
The top three causes of mortgage default leading to foreclosure are unemployment, medical expenses, and adjustable-rate mortgage resets.
Historically, the foreclosure rate in the U.S. peaked during the economic downturn of 2010, reaching over 4%.
The percentage of foreclosure notices that proceed to actual sale is approximately 65%.

Foreclosure Rates Interpretation

As foreclosure rates inch upward from their historic lows, driven largely by economic stress and subprime lending pitfalls, the rising tide underscores that behind the numbers lie families on the brink—reminding us that homeownership remains a delicate balance between financial stability and unforeseen hardship.

Market Trends and Foreclosure Rates

In 2022, approximately 227,000 U.S. homes were foreclosed, representing a 16% increase from the previous year.
Approximately 1.5 million homeowners are at risk of losing their homes due to overdue payments as of mid-2023.
Foreclosure filings in Florida increased by 34% in Q1 2023 compared to Q1 2022.
Rental properties are also vulnerable, with a 7% increase in sheriff's sales of rental homes in 2022.
Nearly 9% of all homeowner delinquency and foreclosure filings in 2022 involved FHA-backed loans.
The median foreclosure sale price was approximately $210,000 in 2023.
Approximately 1 in 50 homes with VA loans experienced foreclosure proceedings in 2023.
The average nationwide delinquency rate for mortgages was 2.5% in April 2023.
Foreclosure sales through sheriff's or auction sales represented approximately 25% of all foreclosure completions in 2022.
The majority of foreclosures in 2022 involved single-family homes, accounting for roughly 80% of cases.
The percentage of homes foreclosed upon after a delinquency of 90+ days was 65% in 2022.
The number of properties facing foreclosure in rural areas increased by 18% in 2022.
Foreclosure auction prices tend to be 20-30% below market value of comparable properties.
Lower-income neighborhoods experienced foreclosure rates nearly twice as high as higher-income areas in 2022.

Market Trends and Foreclosure Rates Interpretation

As foreclosure figures climb and neighborhoods shift, the stark reality is that while nearly one in fifty VA-backed homes face foreclosure, the median sale price of $210,000 underscores both the financial toll on homeowners and the often undervalued, distressed properties flooding the market amid rising risks across urban and rural divides.

Pandemic Impact and Foreclosure Prevention

Mortgage modifications reduced foreclosure rates by approximately 15% in 2022.
The COVID-19 pandemic led to a temporary halt in foreclosures, which resumed fully by mid-2021.
The FHA's short-term loss mitigation programs prevented an estimated 10,000 foreclosure completions in 2022.

Pandemic Impact and Foreclosure Prevention Interpretation

While mortgage modifications and pandemic-era relief efforts collectively prevented thousands of foreclosures in 2022, the steady resumption of foreclosure activity post-pandemic underscores the ongoing importance of robust loss mitigation strategies in keeping homeowners afloat.

Regional and State-Level Data

States like New York and New Jersey have the highest foreclosure rates, exceeding 0.7% in 2023.
The average length of stay in foreclosure before sale varies by state, ranging from 6 to 18 months.
45% of all foreclosure notices are filed in just five states: Florida, California, Texas, Georgia, and Illinois.

Regional and State-Level Data Interpretation

With foreclosure rates spiking in states like New York and New Jersey and nearly half of all notices concentrated in just five states—Florida, California, Texas, Georgia, and Illinois—2023's housing crisis underscores that while some regions face rapid failures, others linger in limbo, revealing the patchwork vulnerability of America's real estate landscape.