Foreclosures have quietly crept higher across the U.S., according to information from ATTOM data services. As of January 2026, home foreclosures nationwide increased 26% compared to January 2025.
Ohio currently has the 12th-hightest foreclosure rate in the nation, with one filing for every 3,099 homes. (Nationally, the ratio is one foreclosure in every 3,547 homes.) This is far lower than the levels seen during the Great Recession, but it still bears watching.
Certain areas of Ohio have long struggled with foreclosures. During 2025, about 10% of the foreclosures in Cuyahoga County were attributed to vacant homes. It’s hard to imagine someone abandoning a property with today’s home values, but it happens. Sometimes a home needs more repair than what the market value supports, or what the homeowner can afford.
Other reasons for foreclosure include job loss, divorce, serious health issues, and the death of the homeowner or co-owner. This is why a percentage of foreclosure activity is normal, no matter how “good” the local real estate market might be.
How can foreclosure be avoided?
Never skip a mortgage payment. Once a mortgage payment is 30 days past due, the default clause may be triggered, allowing the lender to seek foreclosure. Typically the process does not start for 90 days. Still, it is very difficult for most people to recover after the first domino falls.
A lender may allow a structured repayment plan, but this means an even higher monthly payment for a set period of time. If you’re already struggling financially, it’s hard to honor the deal. Also, you must manage any increases to your escrow account payments relating to property taxes and homeowner’s insurance.
If you have a temporary income loss, calling your lender or mortgage servicer before you fall behind in your mortgage is the first step. Hardship programs vary by lender and mortgage type, but there may be options to avoid default. For example, you may be able to defer a payment, and have it added to the end of the term.
If you are facing a permanent income loss, and you cannot afford your mortgage payment, selling your home beats losing it to foreclosure.
If your home has negative equity, the lender may approve a short sale, and accept the current market value of the home to settle the outstanding mortgage balance. This can help you avoid a foreclosure on your credit report, and avoid the stress of the foreclosure process.
A mortgage company may allow a loan modification to make the payments more affordable. This can include a rate reduction, and/or an extension of the loan term. You must qualify for this option with a process that is similar to a loan application.
Cooperating with your mortgage lender, and remaining in contact with them, is important in all cases. Reaching out to housing agencies like Save the Dream Ohio can help!
Buy wisely with the help of an Exclusive Buyer Broker!
The best way to avoid a future risk of foreclosure, is to buy a home well within your means. Avoid “stretching” to obtain a more expensive home, even if your lender says you qualify. Consider too, that while your mortgage may have a fixed interest rate, expenses like property taxes, homeowner’s insurance and energy bills increase over time. Home repairs and maintenance costs should be budgeted as well.
As Exclusive Buyer’s Brokers, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest, at all times.
Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!
Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!
Andrew Show
Exclusive Buyer’s Broker, CEBA-M, MCNE, CSP, PSA,e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services www.BuyersHome.com
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax
