Thursday, March 12, 2026 / by Vic Markarian
One Key Sign We’re Not Headed for a Wave of Foreclosures
One Key Sign We’re Not Headed for a Wave of Foreclosures
If you’ve been following housing headlines lately, you may have seen reports that foreclosure activity is ticking up slightly.
For many homeowners, that immediately brings back memories of the 2008 housing crash.
But when you actually look at the data, the situation today is very different.
Across the country, and in markets like Glendale CA, La Crescenta, Montrose, Burbank, Tujunga, Sunland, Granada Hills, Van Nuys, North Hollywood, and surrounding Los Angeles County communities, foreclosure risk remains historically low.
The key indicator that explains why is serious mortgage delinquency rates.
Serious Mortgage Delinquencies Are Still Extremely Low
A serious delinquency means a homeowner is 90 or more days behind on their mortgage payment.
That’s typically the stage lenders monitor closely when assessing foreclosure risk.
Data from the New York Federal Reserve shows that serious mortgage delinquencies remain far below the levels seen during the housing crash.
During the peak of the financial crisis, nearly 9% of mortgages were seriously delinquent.
Today, that number is around 1%.
In simple terms:
- Crash era → about 1 in 11 homeowners were seriously behind on payments
- Today → roughly 1 in 100 homeowners are
That gap is enormous, and it’s one of the clearest signs the housing market isn’t facing the same structural risks as 2008.
Not Every Delinquency Turns Into a Foreclosure
Even when homeowners fall behind, foreclosure is rarely the immediate outcome.
Lenders typically work with homeowners through:
- Repayment plans
- Loan modifications
- Temporary forbearance options
Banks generally prefer solutions that keep homeowners in their homes rather than forcing foreclosure.
That’s one reason why foreclosure filings remain very low.
According to ATTOM data, only about 0.3% of homes currently have a foreclosure filing.
That’s not a wave.
It’s a ripple.
Why Mortgage Payments Are Still a Top Priority
Another important insight comes from looking at how households handle financial pressure.
When budgets get tight, people tend to prioritize the debt tied to their home first.
Recent New York Fed data shows that delinquencies are rising more noticeably in credit cards and auto loans, while mortgage delinquencies remain comparatively stable.
In other words, many households will fall behind on other types of debt before missing their mortgage payment.
This pattern reflects how strongly homeowners value keeping their homes, especially after years of building equity.
Home Equity Is a Major Safety Net
One of the biggest differences between today’s housing market and the 2008 crash is home equity.
Over the past several years, homeowners across the country have built substantial equity as home values increased.
That equity provides options.
If a homeowner faces financial difficulty, selling the home is often a viable path to avoid foreclosure.
This dynamic is visible across Los Angeles County as well. Homeowners in Glendale, Burbank, La Crescenta, Montrose, North Hollywood, Van Nuys, Granada Hills, Sunland, and Tujunga have generally seen strong long-term appreciation, which strengthens financial flexibility.
Back in 2008, many homeowners owed more than their homes were worth.
Today, most homeowners have the opposite situation, they have equity they can access if needed.
What This Means for the Housing Market
Slight increases in foreclosure filings can sound alarming in headlines.
But the broader data tells a much calmer story.
Mortgage delinquency rates remain low. Homeowner equity remains strong. Foreclosure filings remain rare.
Taken together, those signals show a housing market that looks fundamentally different from the crash era.
Bottom Line
Yes, foreclosure filings have increased slightly from extremely low levels.
But the underlying data shows no evidence of a foreclosure wave forming.
For homeowners across Glendale CA, Burbank, La Crescenta, Montrose, Granada Hills, Van Nuys, North Hollywood, Sunland, Tujunga, and surrounding Los Angeles County neighborhoods, the housing market remains far more stable than the headlines sometimes suggest.
If you ever have questions about what national housing trends actually mean for your local market, that perspective can make a big difference.
Call 818-860-7386 for a calm, no-pressure conversation about what’s happening in our local housing market.
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