Every market creates a new excuse to wait.

 

In 2022 it was, "I'm waiting for rates to come down."

 

In 2023 it was, "Prices are about to crash."

 

In 2024 it was, "The foreclosure wave is coming."

 

Now, in 2026, foreclosure headlines are back. Buyers are reading that foreclosures have climbed to their highest level since 2019 and wondering if this is finally the moment to sit on the sidelines and wait for bargains.

 

Before you do, let's look past the headline.

 

Yes, foreclosure starts have increased. The national foreclosure start rate is now 0.24%, about where it was in 2019. That sounds dramatic until you remember one important detail: from 2020 through 2022, we didn't have a normal housing market.** We had federal foreclosure moratoriums through the CARES Act, widespread mortgage forbearance, payment deferrals, loan modifications, and other homeowner relief programs that kept millions of borrowers out of foreclosure. Comparing today's market to those artificially suppressed years is like saying traffic doubled after a bridge reopened. Of course it did.

 

Here's what the headlines conveniently leave out.

 

Foreclosure activity may be back to 2019 levels, but it remains **well below the levels experienced during the Great Financial Crisis. Even more important, serious mortgage delinquencies and late mortgage payments remain below historical norms.** In other words, the overwhelming majority of homeowners are still making their payments on time despite higher mortgage rates, rising insurance premiums, and increasing property taxes. That's not what a housing collapse looks like.

 

"But aren't homeowners under pressure?"

 

Absolutely.

 

Insurance costs have jumped. Property taxes are higher. The cost of living has increased. Realtor.com even points to those factors as reasons foreclosure activity has gradually risen. But today's homeowner is also sitting on something most owners didn't have in 2008 equity. Millions of homeowners locked in mortgage rates under 4%, lending standards have been dramatically stronger for over a decade, and many families have built substantial wealth through appreciation. When financial trouble hits, many owners can sell before foreclosure ever becomes necessary.

 

Could you find a deal?

 

Absolutely.

 

The median bank-owned (REO) home is currently selling for 27.2% below its estimated market value. That's real opportunity. But here's the reality check: REO properties account for only about 1.3% of all active listings nationwide. That's not a flood of inventory. That's a small slice of the housing market. And because buyers know they're discounted, those homes receive 26.5% more online views than the average listing. You're not the only one looking for a bargain.

 

So if you're delaying your home purchase because you believe a massive foreclosure wave is around the corner, ask yourself this:

 

What data are you looking at?

 

The data doesn't show a repeat of 2008.

 

It shows a market that's returning to normal after years of extraordinary government intervention. It shows foreclosure levels similar to 2019 not crisis levels. It shows homeowners who, by and large, are still paying their mortgages. And it shows distressed inventory making up just over 1% of homes for sale.

 

The smartest buyers don't try to time the next crash they buy when **their finances** are ready.

 

Because here's the truth: if rates come down, you'll have more competition. If inventory tightens, you'll have fewer choices. And if home prices continue to appreciate, the bargain you were waiting for may end up costing you far more than buying today.

 

Don't let a scary headline make one of the biggest financial decisions of your life.

 

Read the numbers not just the headlines.