Home foreclosures are rising across the US — here's what it means for Omaha metro homebuyers

OMAHA, Neb. — Home foreclosure rates are rising across the country, and that trend could reshape what prospective homeowners face here in the Omaha metro.

According to data from ATTOM, a real estate data firm, foreclosures rose 13% in the U.S. over the past year, as a larger share of those who took out mortgages fall behind on payments.

Donna McFarden is a housing counselor at Family Advisory Housing Services, where she has worked with clients in the metro dealing with foreclosures for the past 30 years.

She says she's seen the number of people asking for help increase over the past year, and she's worried about the impact on the community.

"It affects the community because who wants to live in a place with a lot of vacant houses where people had to leave due to foreclosure," McFarden said.

"We don't want kids to leave the schools they got used to going to."

To understand the factors driving the trend, I spoke with Jane Liu, an assistant professor of economics at UNO.

She told me this situation is different from the 2008 financial crisis in that it is driven mostly by increases in the cost of living, rather than banks giving out loans too freely.

"So the premium for home insurance is 60% more compared to 2021," Liu said. "And it's just general inflation, and it's squeezing the household budget."

In Nebraska, data shows that one in every 4,428 housing units was foreclosed on. McFarden says that compared to 2008, modification rates are up, creating fewer options for her clients.

"Back then is when mortgage companies really came to the table and there were more options for people t o save their homes from foreclosure," McFarden said. "Right now we are just not seeing that happen."

If you are facing foreclosure, you can search online at the U.S. Department of Housing and Urban Development to find a certified housing counselor near you.

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