You may have noticed headlines warning that foreclosures are climbing again. For homeowners in Tacoma, Puyallup, Auburn, Sumner, SeaTac, Des Moines, Burien, Normandy Park, Lake Tapps, and Bonney Lake, that can feel unsettling—especially if you lived through the 2008 crash. But here’s the reality: today’s situation is very different.
During the housing crisis, over nine million people went through a foreclosure or distressed sale between 2007 and 2011. By comparison, last year’s number was just over 300,000. Even with a recent uptick, that’s still dramatically lower—and not a sign we’re headed for another crash.
Why Experts Aren’t Worried About a Wave of Foreclosures
One of the main early warning signs of foreclosure activity is mortgage delinquencies (loans 30+ days past due). The latest data shows delinquency levels remain stable compared to last year, which suggests no widespread market trouble.
The biggest rise is showing up among FHA loan holders. These borrowers may be more sensitive to inflation, job changes, or economic uncertainty. Still, delinquency rates across most other loan types remain low and steady. Unlike 2008, when all loan categories spiked, today’s market is far healthier overall.
As ResiClub notes:
“The recent uptick in mortgage delinquency seems to be concentrated among FHA borrowers . . . mortgage performance remains very solid when viewed in light of the twenty-year history of our data.”
Regional Differences Matter
Nationally, FHA loans account for about 12% of mortgages, with higher concentrations in some southern states. Locally, markets like Tacoma, Puyallup, and Auburn aren’t experiencing the same FHA-driven challenges at significant levels. That means while certain areas may see more stress, communities in the South Sound region—including Sumner, SeaTac, Des Moines, Burien, Normandy Park, Lake Tapps, and Bonney Lake—remain on stronger footing than during past downturns.
What To Do If You’re Struggling
If you’re facing financial hardship, know that you’re not alone. Options often include:
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Talking with your lender about repayment plans or loan modifications.
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Using home equity (which is near record highs) to sell and avoid foreclosure.
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Consulting with a trusted real estate professional to explore solutions.
The Bottom Line
Yes, foreclosure numbers are rising slightly—but they’re nowhere near 2008 levels. The housing market in our region is far more resilient today. If you’re concerned about your situation or want to better understand your options in Tacoma, Puyallup, Auburn, Sumner, SeaTac, Des Moines, Burien, Normandy Park, Lake Tapps, or Bonney Lake, reach out. Visit Your Real Estate Story to learn more about navigating today’s market confidently.
