Every few weeks, a new headline pops up warning that foreclosure activity has been rising for months. For many people, that kind of news immediately triggers memories of the 2008 housing crash — a period marked by widespread financial pain, plummeting home values, and a tidal wave of distressed properties hitting the market. It’s understandable that any increase in foreclosure filings would make homeowners and buyers uneasy.

But when you step back and look at the broader landscape, a very different story emerges. The housing market today is not replaying the script from 2008. In fact, the data shows something far more reassuring: the market is normalizing after several years of unusual conditions, not spiraling toward another collapse.

This article breaks down what’s really happening, why foreclosure numbers are rising, and why the current environment is fundamentally different from the crisis of the past.

Foreclosure Activity Is Rising — But Still Within Normal Boundaries

Foreclosure filings have increased year‑over‑year, with ATTOM reporting a 32% uptick. On the surface, that sounds dramatic. But numbers without context can be misleading. A 32% increase from historically low levels doesn’t mean the market is in danger — it means the market is moving back toward typical patterns.

To understand this, it helps to remember what the last few years looked like:

• Pandemic‑era protections paused many foreclosure proceedings.
• Mortgage forbearance programs gave struggling homeowners temporary relief.
• Record‑low interest rates and rapid home price appreciation strengthened equity positions.

All of this created an environment where foreclosure activity dropped to levels far below what would normally be expected in a functioning housing market. Now that those temporary conditions have faded, filings are naturally rising — not because homeowners are collapsing under financial pressure, but because the market is recalibrating.

When you compare today’s numbers to the years leading up to the 2008 crash, the difference is staggering. During the crisis, annual foreclosure filings exceeded one million for several consecutive years. Today’s levels are nowhere near that threshold. Even with the recent increase, filings remain a fraction of what they were during the housing meltdown.

This is why industry experts describe the current trend as a “return to normal,” not a warning sign.

Why Rising Filings Don’t Indicate a Market in Distress

The fear surrounding foreclosure data often stems from the assumption that rising filings automatically mean homeowners are struggling en masse. But that’s not what the numbers show.

1. Homeowners Have More Equity Than Ever Before

One of the most important differences between today’s market and the pre‑crash environment is the amount of equity homeowners hold. Over the past five years, home prices have climbed significantly. Even with recent moderation, the typical homeowner has built substantial equity — in many cases, tens or even hundreds of thousands of dollars.

This matters because equity acts as a financial cushion. If a homeowner encounters hardship, they often have the option to sell their home rather than face foreclosure. In many cases, they can sell and still walk away with money in their pocket.

Contrast that with 2008, when millions of homeowners were underwater — owing more on their mortgages than their homes were worth. That negative equity trapped people, leaving them with few options other than foreclosure.

Today’s homeowners are in a far stronger position.

2. Lending Standards Are Much Stricter Than They Were Before the Crash

The early 2000s saw a wave of risky lending practices:

• Low‑documentation loans
• Adjustable‑rate mortgages with steep resets
• Subprime lending to borrowers who couldn’t realistically afford payments

When the market shifted, many borrowers were unable to keep up.

Since then, lending regulations have tightened dramatically. Borrowers today must meet higher credit standards, provide thorough documentation, and demonstrate the ability to repay. This has created a more stable borrower pool and reduced the likelihood of widespread defaults.

3. The Housing Market Isn’t Oversupplied

Another major factor in the 2008 crash was the massive oversupply of homes. Builders had overproduced, and when demand cooled, inventory ballooned. Falling prices pushed more homeowners underwater, creating a vicious cycle.

Today, the opposite is true. The country has faced a housing shortage for years. Inventory remains tight in many markets, and demand continues to outpace supply. This imbalance helps support home values, even in periods of economic uncertainty.

4. Foreclosure Activity Is Still Below Pre‑Pandemic Norms

Even with the recent increase, filings remain lower than what was typical before the pandemic. The years 2017–2019 are widely considered the last “normal” period for housing. When you compare today’s numbers to those years, the trend lines are remarkably similar.

This reinforces the idea that the market is stabilizing, not deteriorating.

What Experts Are Saying About the Trend

Industry leaders have been clear about what the data really means. Rob Barber, CEO of ATTOM, has emphasized that the rise in foreclosure activity reflects normalization, not crisis. He notes that filings, starts, and repossessions remain well below pre‑pandemic levels and far below the peaks of the housing crash.

Barber also highlights that today’s uptick is driven by market recalibration rather than widespread financial distress. Strong equity positions and more disciplined lending practices continue to limit risk.

In other words, the fundamentals of the market remain solid.

Why This Isn’t 2008 — And Why It Won’t Become 2008

The shadow of the last housing crash still looms large in the public imagination. Anytime foreclosure numbers rise, people worry that history is repeating itself. But the conditions that led to the crisis simply aren’t present today.

Let’s break down the key differences:

Stronger Borrowers

Today’s homeowners are more financially stable, with higher credit scores and more reliable income documentation.

More Equity

Rising home values have created a buffer that protects homeowners from falling into negative equity.

Better Regulation

The lending environment is far more controlled, reducing the risk of mass defaults.

Supply Shortages

A limited housing supply supports home prices and prevents the kind of rapid depreciation seen during the crash.

Economic Conditions Are Different

While inflation and interest rates have created challenges, the broader economic environment is not experiencing the same structural weaknesses that existed in 2008.

All of this means that even if foreclosure filings rise modestly, the market is not on the brink of collapse.

Why Headlines Can Be Misleading

Media outlets often focus on dramatic percentage increases because they grab attention. A headline that says “Foreclosures Up 32%” sounds alarming. But without context — such as the fact that filings were at historic lows the year before — the number can be easily misinterpreted.

This is why it’s so important to look beyond the headlines and understand the underlying data. A rise from extremely low levels doesn’t indicate a crisis. It indicates movement back toward normalcy.

What Homeowners and Buyers Should Take Away From This

If you’re a homeowner, the current foreclosure data shouldn’t cause panic. The vast majority of homeowners are in strong financial positions, and the market fundamentals remain healthy.

If you’re a buyer, rising foreclosure filings don’t mean a flood of distressed properties is coming. The market isn’t heading toward a crash, and inventory is unlikely to spike dramatically.

The most important thing you can do — whether you’re buying, selling, or simply trying to understand the market — is to rely on trusted real estate professionals who can interpret the data accurately and explain how it applies to your situation.

Bottom Line

Foreclosure activity is rising, but it’s rising from historically low levels and moving back toward what’s considered normal for a healthy housing market. The increase does not signal a repeat of the 2008 crisis. Strong equity, tighter lending standards, and a persistent housing shortage all contribute to a stable environment.

The headlines may sound scary, but the underlying data tells a much calmer story.

Whenever you see something in the news that raises concerns about the housing market, reach out to a knowledgeable local real estate expert. They can help you understand what’s really happening and how it affects your goals — if it affects them at all.