People are starting to owe more than their homes are worth again, sound familiar?
This is when people start mailing their keys to the bank and leave
After all: Why would you go through the hardship to keep paying on a $400k mortgage when the house is only worth 300k?
In 2008 many decided to just walk away from their mortgage because they couldn’t afford it https://t.co/18NJGU41Ae
— QE Infinity (@StealthQE4) November 14, 2025
Being ‘underwater’ means you owe more on your mortgage than your home’s worth – which is happening more as home prices fall
Homeowners who are underwater on their mortgage are more likely to be in the Sun Belt, such as in Florida or Texas, a new report suggests.
Nearly 900,000 homeowners are underwater on their mortgage as home prices fall, signaling a worrying turn in the housing market.
That figure represents 1.6% of all mortgage holders in the U.S. While the share may seem like a small part of the overall market, it’s also the highest rate in three years, according to a new report by Intercontinental Exchange (ICE).
As existing-home sales remain on track to hit a 30-year low, home prices are losing steam due to years of tepid demand from home buyers. A homeowner is underwater on their mortgage when they owe more on their mortgage than their home is worth.
Foreclosures surge 20% as Americans struggle to pay mortgages — and fears of 2008-style crash soar
There is a worrying new trend foreshadowing a housing market crash.
Foreclosures — when a bank or lender takes back a home after missed mortgage payments — are once again on the rise in the US.
New data from ATTOM shows more homeowners falling behind on their mortgages amid job losses and soaring living costs.
In October alone, there were 36,766 foreclosure filings — the first step in the process, when a lender warns a borrower they’re in default. That’s up three percent from September and 19 percent from a year ago.
‘Foreclosure activity continued its steady upward trend in October — the eighth straight month of year-over-year increases,’ said ATTOM CEO Rob Barber.
The rise is stirring uncomfortable memories of 2008, when a wave of foreclosures triggered the worst housing crash in modern US history.
Back then, millions of Americans had adjustable-rate subprime mortgages that borrowers could not afford to pay. The fallout wiped out trillions in household wealth and pushed major banks to the brink, tipping the global economy into recession.
Today’s homeowners have safer loans, but experts warn that high borrowing costs, soaring insurance premiums, and dwindling savings could again push struggling families into default.
https://www.dailymail.co.uk/real-estate/article-15285273/foreclosures-october-financial-crash.html