Foreclosures Increase in the United States

In the first three months of the year 2025, the United States has seen an increase in the number of foreclosures, highlighting Delaware, Illinois, and Nevada as the states with the most foreclosures executed due to mortgage payment defaults; data indicates that while the national foreclosure average is 1 property per every 4,400 homes, in Delaware, Illinois, and Nevada the average is approximately 1 property per every 2,375 homes—practically double the national average. The question that arises for these states is how the market is changing in these areas.

The main reason attributed to the increase in foreclosures is inflation, since the rising cost of living reduces the budget, reflected in the failure to meet financial obligations as the increase in food and basic services reduces the portion allocated for mortgage payments; another reason to consider is that refinancing or selling has become more complicated, leaving homeowners with difficulties in getting out of the situation, and finally unemployment in certain regions which, although it has decreased at the national level, is still increasing in some sectors.

On the other side of the sector are investors waiting for these opportunities to acquire properties at a very low cost with expectations of higher returns, taking advantage of the current moment in the market.

It is also important to highlight that rescue policies should be re-implemented for properties in difficulty—refinancing programs or interest rates adjusted to income, reactivating programs that allow for payment pauses or flexible payment agreements, giving families time to stabilize their finances, as well as advisory programs and promoting the incentive for banks to modify loans.

In conclusion, the increase in foreclosures at the national level is a mix of various issues: economic pressure, restrictive monetary policy, unemployment, and debt. However, through the implementation of previous programs that have worked, adapting them to the new reality, they can be effective in helping to address the problem.

By Elías DaSilva | May 07,  2025