US foreclosures jump 13% as costs squeeze budgets

The number of homes entering foreclosure in the United States increased by 13 percent over the past year. This rise indicates that a larger share of mortgage borrowers are falling behind on their payments. The trend is reshaping the housing market and creating new challenges for prospective buyers in the Omaha metro area.

ATTOM, a real estate data firm, provided the national statistics. In Nebraska specifically, the rate of foreclosure was recorded at one for every 4,428 housing units. These figures suggest a steady climb in defaults rather than a sudden spike. The data serves as a benchmark for local economic shifts.

Donna McFarden has worked as a housing counselor at Family Advisory Housing Services for 30 years. She reports that the number of clients seeking assistance has grown over the last 12 months. McFarden expresses concern about the visible impact on 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," she said. She also noted the disruption to students, adding, "We don't want kids to leave the schools they got used to going to."

Jane Liu, an assistant professor of economics at UNO, explained the drivers behind the current wave. She distinguished this period from the 2008 financial crisis by noting that the current trend is fueled by cost of living increases rather than loose lending standards. "So the premium for home insurance is 60% more compared to 2021," Liu said. "And it's just general inflation, and it's squeezing the household budget."

McFarden observed that the current environment offers fewer pathways for homeowners to save their properties. Modification rates have risen, which she interprets as a reduction in available options for her clients. "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."

Individuals facing potential foreclosure can search for certified housing counselors through the U.S. Department of Housing and Urban Development online. This resource connects borrowers with local professionals who can review their financial situations. The availability of such services remains a key tool for those struggling with payment obligations.