What Homeowners & Investors Need to Know in 2025
As the Southern California housing market adjusts to post-pandemic realities, higher interest rates, and economic uncertainty, one question is gaining traction among homeowners, investors, and real estate professionals alike: Are foreclosures on the rise?
📈 The Numbers: A Gradual Uptick
Recent data shows a moderate increase in foreclosure activity across Southern California, particularly in counties like Riverside, San Bernardino, and parts of Los Angeles. While levels are still far below the 2008 housing crisis, they’ve been steadily climbing since the end of COVID-era forbearance programs.
According to ATTOM Data Solutions, California saw a 15-20% increase in foreclosure filings year-over-year in early 2025, with Southern California representing a significant portion of that. Factors contributing to the rise include:
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Adjustable-rate mortgages (ARMs) resetting at higher interest rates
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Inflation pressuring household budgets
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Job market shifts in sectors like tech and logistics
🏘️ What Does This Mean for Homeowners?
For homeowners struggling with mortgage payments, this is a critical time to explore options like:
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Loan modification programs
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Selling before foreclosure (often with equity still intact)
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Short sales or deed-in-lieu solutions
Consulting a real estate professional early can make all the difference between protecting your credit and losing your home.
💼 A Window of Opportunity for Investors?
Investors are watching closely, especially those who specialize in distressed properties. As inventory remains low, foreclosures offer potential—but competition is fierce, and proper due diligence is key. Auction properties and pre-foreclosure listings may offer good deals, but navigating liens, repairs, and legal hurdles requires expertise.
⚖️ Market Outlook: Not a Crash, But a Correction
We’re not seeing the kind of mass defaults that marked the Great Recession. Instead, experts suggest this is part of a market correction—a response to years of price inflation and aggressive buying. The rise in foreclosures may continue modestly through 2025, especially if economic growth remains sluggish or unemployment ticks up.
🔍 Final Thoughts
Foreclosures are indeed rising—but not skyrocketing. Whether you’re a homeowner, buyer, or investor, being proactive and informed is your best asset in this shifting market.
📲 Let’s Talk: Your Next Move Starts Here.
Whether you’re navigating hardship or seeking opportunity, I’m here to help with insight, options, and market expertise.