Nearly a million Americans fear losing their homes to foreclosure – DSNews

With high inflation and rising house prices fueled by the pandemic, the latest LendingTree study revealed that it can be difficult for some households to meet necessary expenses, leading for some to delayed mortgage payments and foreclosure.

Most American adults do not live in households that are behind on their mortgage payments, nor are they at risk of foreclosure in the near future. However, nearly one million Americans nationwide fear losing their homes to foreclosure within the next two months. LendingTree measured relevant Census Bureau data to determine how many Americans 18 and older are at immediate risk of losing their homes to foreclosure.

Main findings:

In the United States, only 3.71% of adults living in owner-occupied housing are not caught up in their mortgage payments. The share of people in owner-occupied households who have caught up on their payments is 60.43%, while a further 35.47% do not need to make payments because they own their homes freely .
Of those who haven’t caught up on their mortgages, 19.62% in the United States say they are somewhat or very likely to leave their home due to foreclosure in the next two months. Although a notable portion of adults who live in households that are behind on mortgage payments fear being foreclosed in the near future, it is important to remember that only 3.71% of households nationwide are not up to date on their housing payments.
South Dakota, Oregon and New Mexico have the largest share of adults in arrears on their mortgages who say they are at risk of losing their home to foreclosure in the near future. In those states, an average of 55.45% of those who haven’t caught up on their housing payments say they are somewhat or very likely to leave their homes due to foreclosure in the next two months. However, of all adults living in owner-occupied households in these states, an average of only 3.42% report living in households that are behind on their mortgage payments.
Although an average of 2.81% of adults living in owner-occupied households report being behind on their mortgage payments in Nevada, Kentucky and Idaho, no one in these states reports being at risk of losing their home. due to a foreclosure within the next two months. Our study is based on self-reported survey data, so that doesn’t mean that there are absolutely no people in these states at risk of losing their home to foreclosure.

States with the highest proportion of adults in households in arrears at risk of losing their home to foreclosure

1. South Dakota

Total adult population in owner-occupied households: 427,615
Percentage of adult population in owner-occupied households who have caught up on their mortgage payments: 54.66%
Percentage of adult population in owner-occupied households who have not caught up on their mortgage payments: 2.38%
Percentage of adult population in owner-occupied households freely owned: 42.96%
Percentage of adult population in owner-occupied households behind on mortgage payments and somewhat or very likely to leave their homes due to foreclosure in the next two months: 71.28%
Percentage of adult population in owner-occupied households behind on mortgage payments and unlikely or at all likely to leave their homes due to foreclosure in the next two months: 28.73%

2. Oregon

Total adult population in owner-occupied households: 1,891,583
Percentage of adult population in owner-occupied households who have caught up on their mortgage payments: 65.90%
Percentage of adult population in owner-occupied households who have not caught up on their mortgage payments: 2.80%
Percentage of adult population in owner-occupied households freely owned: 31.30%
Percentage of adult population in owner-occupied households behind on mortgage payments and somewhat or very likely to leave their homes due to foreclosure in the next two months: 49.59%
Percentage of adult population in owner-occupied households behind on mortgage payments and unlikely or at all likely to leave their homes due to foreclosure in the next two months: 50.41%

3. New Mexico

Total adult population in owner-occupied households: 900 679
Percentage of adult population in owner-occupied households who have caught up on their mortgage payments: 50.24%
Percentage of adult population in owner-occupied households who have not caught up on their mortgage payments: 5.07%
Percentage of adult population in owner-occupied households freely owned: 44.19%
Percentage of adult population in owner-occupied households behind on mortgage payments and somewhat or very likely to leave their homes due to foreclosure in the next two months: 45.47%
Percentage of adult population in owner-occupied households behind on mortgage payments and unlikely or at all likely to leave their homes due to foreclosure in the next two months: 54.53%

States with Smallest Proportion of Adults in Mortgage Delinquent Households at Risk of Home Loss to Foreclosure

1 (tie). Idaho

Total adult population in owner-occupied households: 758 831
Percentage of adult population in owner-occupied households who have caught up on their mortgage payments: 60.31%
Percentage of adult population in owner-occupied households who have not caught up on their mortgage payments: 4.12%
Percentage of adult population in owner-occupied households freely owned: 35.58%
Percentage of adult population in owner-occupied households behind on mortgage payments and somewhat or very likely to leave their homes due to foreclosure in the next two months: 0.00%
Percentage of adult population in owner-occupied households behind on mortgage payments and unlikely or at all likely to leave their homes due to foreclosure in the next two months: 100.00%

1 (tie). Kentucky

Total adult population in owner-occupied households: 1 803 552
Percentage of adult population in owner-occupied households who have caught up on their mortgage payments: 57.60%
Percentage of adult population in owner-occupied households who have not caught up on their mortgage payments: 2.36%
Percentage of adult population in owner-occupied households freely owned: 40.04%
Percentage of adult population in owner-occupied households behind on mortgage payments and somewhat or very likely to leave their homes due to foreclosure in the next two months: 0.00%
Percentage of adult population in owner-occupied households behind on mortgage payments and unlikely or at all likely to leave their homes due to foreclosure in the next two months: 100.00%

1 (tie). Nevada

Total adult population in owner-occupied households: 1,251,594
Percentage of adult population in owner-occupied households who have caught up on their mortgage payments: 64.43%
Percentage of adult population in owner-occupied households who have not caught up on their mortgage payments: 1.96%
Percentage of adult population in owner-occupied households freely owned: 33.60%
Percentage of adult population in owner-occupied households behind on mortgage payments and somewhat or very likely to leave their homes due to foreclosure in the next two months: 0.00%
Percentage of adult population in owner-occupied households behind on mortgage payments and unlikely or at all likely to leave their homes due to foreclosure in the next two months: 100.00%

Despite high real estate prices, foreclosures remain rare in the United States

With the talk of the recession getting louder and the housing market still going strong, some may think that most homeowners are at a greater risk of foreclosure than they are.

Granted, foreclosure rates have increased since 2021 — largely due to the end of pandemic-era foreclosure moratoriums — but they’re still slightly lower than in 2019. This, combined with less than 1% of all adults in owner-occupied households across the United States are reporting that they are at risk of losing their homes to foreclosure in the next two months, showing that foreclosure is not common.

This doesn’t diminish the challenges faced by those facing a foreclosure, but it does show how the market is in a fundamentally different place than during the Great Recession of 2007 to 2009, when foreclosures were far more common. .

To read the full report, including more charts and methodology, Click here.