US Home Foreclosures Jump 13% as Costs Rise

Home foreclosure rates in the United States increased by 13% over the past year, according to data from real estate firm ATTOM. The rise indicates that a growing number of mortgage holders are falling behind on their payments, a trend that is beginning to affect housing markets locally.

Donna McFarden, a housing counselor at Family Advisory Housing Services, said she has observed an increase in the number of metro area clients seeking assistance over the last 12 months. She noted that the surge in foreclosures creates vacant properties that alter the character of neighborhoods. "It affects the community because who wants to live in a place with a lot of vacant houses where people had to leave due to foreclosure," McFarden said. She added that displaced families often face the loss of established school enrollments for their children.

Jane Liu, an assistant professor of economics at the University of Nebraska Omaha, stated that the current economic pressure differs from the 2008 financial crisis. Liu explained that the current wave of defaults is driven primarily by rising living costs rather than banks issuing loans too freely. She cited a 60% increase in home insurance premiums since 2021 as a major factor squeezing household budgets alongside general inflation.

In Nebraska, data shows that one in every 4,428 housing units underwent foreclosure. While the rate appears low compared to national averages, local counselors report that the process for saving homes has become more difficult. McFarden said that mortgage companies are currently offering fewer modification options to struggling borrowers than they did during the 2008 downturn. "Back then is when mortgage companies really came to the table and there were more options for people to save their homes from foreclosure," McFarden said. "Right now we are just not seeing that happen."

The U.S. Department of Housing and Urban Development maintains an online database where individuals facing foreclosure can search for certified housing counselors in their area. The department's resources are available to homeowners looking for professional guidance on navigating the process.