Foreclosures Are Rising. Here's What To Do Before You Fall Behind

Foreclosure filings were up 21% in the first half of 2026 compared to the same period last year, according to ATTOM Data. Mortgage delinquencies are climbing too. Serious delinquencies, meaning payments 90 or more days past due, sit at 1.2%, up from 1% a year ago. FHA loans are getting hit hardest, with delinquency rates above 11%, the highest level since mid-2021.

That's a real trend, and it's worth understanding. It is not 2008. Delinquency and foreclosure rates today are still a fraction of what they were during the housing crisis. What's happening now is closer to a return to normal after several years of unusually low foreclosure activity, driven by pandemic-era protections finally expiring, inflation, and mortgage rates that pushed higher than most households budgeted for. Utah's own foreclosure rate remains low by national standards, and local data describes it as a gradual normalization rather than distress. But "low compared to the rest of the country" doesn't help if it's your mortgage that's behind, so here's what actually matters if you're worried.

What foreclosure actually looks like, step by step

Foreclosure isn't a single event that happens the moment you miss a payment. It's the end of a process, and federal law builds in room to fix things before it gets there.

Once you submit a complete application for help, your servicer is required to evaluate it within 30 days, as long as it's submitted more than 37 days before a scheduled foreclosure sale. That window exists because lenders generally don't want your house either. Foreclosure is expensive and slow for them too. Every option below exists because working something out is usually the better outcome for everyone involved.

Your actual options, roughly in order

Call your servicer the moment you know there's a problem. Not after you've missed a payment, the day you know it's coming. Early conversations open more doors than late ones.

Repayment plan. Your servicer spreads the missed amount across future payments instead of demanding it all at once.

Forbearance. Payments are reduced or paused for a set period, usually three to six months, with the missed amount added back afterward.

Loan modification. Your servicer permanently adjusts the loan, terms, rate, or length, to bring the payment down and roll the past-due balance into the loan.

Partial claim (FHA loans). HUD provides an interest-free loan that covers the missed payments, repaid later or when you sell or refinance.

Refinance, if you have equity. If your situation is more "rates went up and it's tight" than "I've missed several payments," a refinance to a lower payment can solve the problem before it becomes a bigger one.

Sell with your equity intact. If none of the above fit, selling before you're seriously behind protects the equity you've built instead of losing it to a forced sale.

The one thing that actually matters

Every option above works better the earlier you use it. A homeowner who calls their servicer at 15 days late has far more options than one who waits until 90 days late. This isn't about being embarrassed to make the call. It's the single biggest factor in which of these outcomes you get.

If you're a Quazel client, your Loan Officer is a resource here too, not just for the loan you already have but for understanding whether a refinance makes more sense than working with your servicer directly.

Frequently Asked Questions

How many missed payments before foreclosure starts? It varies by loan type and state, but most servicers won't refer a loan to foreclosure until it's 120 days past due, and federal rules require them to consider loss mitigation options before that happens.

Does forbearance hurt my credit? It can show on your credit report as an arrangement, but it's typically far less damaging than an actual missed payment or foreclosure. Talk to your servicer about how they report it.

Can I refinance if I've already missed a payment? It's harder but not always impossible, depending on how recent and how many. The earlier you explore it relative to any missed payments, the more options you'll have.

Is what's happening now like 2008? No. Current delinquency and foreclosure levels are still well below crisis-era numbers. This is a rise off a very low base, not a collapse.

If you're worried about where things are headed, reach out before it turns into a bigger problem. That conversation costs nothing and it's the single most useful thing you can do.

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