NEW YORK–Foreclosure filings across the United States climbed to a six-year high in the first quarter, driven in part by rising housing-related costs such as insurance and property taxes, according to a new report.
Nearly 119,000 U.S. properties had a foreclosure filing during the quarter, a 26% increase from the same period a year earlier, according to property-data provider Attom. The total marks the highest level since early 2020, when pandemic-era relief programs sharply reduced foreclosure activity.
Analysts told the Wall Street Journal the increase represents more of a return to pre-pandemic norms than a sign of widespread distress, noting many homeowners still benefit from low mortgage rates and rising home equity in recent years. However, the uptick also signals growing financial pressure on some borrowers.
Rising non-mortgage housing costs—including insurance premiums, property taxes and homeowners association fees—are increasingly straining household budgets, the Journal reported. The average annual home-insurance bill reached $2,948 last year, up 12% from 2024, while average property taxes rose 3% to $4,427, according to data cited by the publication.
‘Pain to Come’
“These new causes of distress could be a warning sign of more pain to come,” the Journal explained, noting that resumed student-loan payments and higher delinquencies on credit cards and auto loans are adding to financial burdens.
Homeowners who purchased properties more recently may face heightened risk, as they often carry higher mortgage rates and have less accumulated equity. In some markets, declining home prices have left borrowers owing more than their homes are worth, limiting options such as refinancing or selling.
Marina Walsh, an economist with the Mortgage Bankers Association, told the Journal that many borrowers are experiencing “payment shocks” as taxes and insurance costs rise, particularly when combined with potential job losses.
Expired Protections
At the same time, pandemic-era borrower protections have largely expired. The Federal Housing Administration, for example, has tightened rules around how frequently homeowners can access loan modifications to avoid foreclosure, the Journal reported.
Legal and counseling data also point to rising stress. Foreclosure-related legal requests increased 20% year-over-year in March, according to the LegalShield Consumer Stress Legal Index, which tracks attorney call volume, the Journal reported.
Lots of Equity
Despite these pressures, many homeowners still have significant equity and can sell their homes to avoid foreclosure. But that option is less viable for borrowers who purchased recently, particularly in parts of the South and West where home values have softened, the Journal reported.
Data from Auction.com cited by the Journal show that most foreclosure auctions in March involved mortgages originated between 2021 and 2025, underscoring the vulnerability of more recent buyers.
