Mortgage Foreclosures

Custom report prepared for AMH

<- Sensitivity analysis

Subprime Foreclosures (2010–2013) vs. Current Trends

In the wake of the 2008 housing crash, U.S. foreclosures spiked to record levels around 2010. Foreclosure filings were reported on nearly 2.9 million properties in 2010, the worst year of the crisis​ nationalmortgageprofessional.com. This meant roughly 2.23% of all housing units (one in 45) had a foreclosure filing in 2010​ nationalmortgageprofessional.com. Foreclosure activity began declining after 2010, and by **2013 filings fell to about 1.36 million properties (1.04% of housing units)**​ nationalmortgageprofessional.com, a significant improvement but still elevated above historical norms.

Trend: The comparison is stark – the foreclosure rate nationally in 2010 was about ten times higher than todaynationalmortgageprofessional.comnationalmortgageprofessional.com. What was a housing crisis in the early 2010s has normalized into low foreclosure rates in recent years, thanks to improved lending standards and a strong housing market. Current foreclosure metrics are comparable to or below pre-2008 levels, indicating that the market **“is undergoing a correction rather than a crisis”**​ nationalmortgageprofessional.com.

Ohio: Ohio was hit hard by the foreclosure crisis. The state’s foreclosure rate peaked around 2010–2011, exceeding 2% of homes in foreclosure at the worst point​ clevelandfed.org. (In early 2011, Ohio had about 56,000 loans in foreclosure, its highest on record​ alta.org.) By 2013, Ohio’s foreclosure filing rate was down to 1.53% of housing units for the year​ nationalmortgageprofessional.com. Today, Ohio’s rate has dropped dramatically – in 2023 it was 0.38% of homes (about 1 in 263) with a foreclosure filing​ attomdata.com. Ohio remains somewhat elevated relative to other states (it ranked in the top 5 for foreclosure rates in 2023)​ attomdata.com, but is vastly improved from a decade ago. Notably, subprime mortgages contributed heavily to Ohio’s crisis-era foreclosures – nearly 20% of Ohio’s subprime home loans were in foreclosure at the peak around 2010​ clevelandfed.org. This has since fallen; by 2013 the subprime foreclosure rate was still above 12% in Ohio​ clevelandfed.org, but continued to improve thereafter.

Georgia: Georgia experienced a massive wave of foreclosures around 2010, although its timeline differed due to non-judicial foreclosure processes. In 2009, at the height of the crisis, 2.68% of Georgia housing units received a foreclosure filing (one in every 37 homes)​ fcic-static.law.stanford.edu – one of the highest rates in the nation at that time. Over 2007–2016, Georgia saw about 473,000 foreclosures in total​ alta.org, reflecting the heavy impact of subprime lending and the recession. By 2013, Georgia’s foreclosure activity was subsiding (it no longer ranked in the top five states by foreclosure rate in 2013)​ nationalmortgageprofessional.com. Current trends: Georgia’s foreclosure rate has fallen to roughly 0.2–0.3% of homes per year. For example, in early 2024 Georgia had about 1 foreclosure per 4,863 homes in a monthsofi.com – equivalent to an annual rate around 0.25%. This is a dramatic improvement from the ~2–3% annual rates during 2009–2010. In short, Georgia’s foreclosure rate today is only about one-tenth of what it was during the subprime crisis.

Indiana: Indiana also faced elevated foreclosures in the early 2010s, in part due to economic strains and its judicial foreclosure process. The state’s **foreclosure rate hit a record high at the end of 2011 (about 4.9% of mortgages in foreclosure)**​ ibrc.indiana.edu, slightly above the U.S. average then. (Indiana’s judicial backlog meant loans lingered in foreclosure longer, inflating the rate​ ibrc.indiana.edu.) During 2010–2012, Indiana consistently ranked among the higher-foreclosure states​ ibrc.indiana.edu, though not as extreme as Sun Belt states. Since then, Indiana’s situation has sharply improved. By 2023, Indiana’s foreclosure filing rate was down to 0.32% of housing units for the year​ attomdata.com (around 1 in 312 homes) – a huge drop from the crisis years. In fact, 2023’s foreclosure rate (~0.3%) is the norm now, whereas a decade prior nearly 5% of Indiana home loans were in foreclosureibrc.indiana.edu. This illustrates the long-running recovery: what was once a “foreclosure crisis” in Indiana has largely normalized, although the state still had a top-10 foreclosure rate in 2023 (owing to those judicial delays)​ attomdata.com.

Summary: All three states saw foreclosure rates above 1–2% in 2010–2011, fueled by subprime loan defaults and the recession. Ohio and Georgia in particular had tens of thousands of foreclosures per year during 2010–2013 (e.g. >100k filings per year in Georgia at peak)​ nationalmortgageprofessional.com. Today, their foreclosure rates hover around a few tenths of a percent – a small fraction of the crisis levels. The decline is attributed to economic recovery, loan modifications and tighter lending standards post-crisis. Foreclosure volumes in these states are down on the order of 80–90% from 2010. For instance, Ohio’s foreclosures fell from roughly 1.5% of homes in 2013 to 0.38% in 2023nationalmortgageprofessional.comattomdata.com, and Georgia’s fell from ~2.7% in 2009 to ~0.25% nowfcic-static.law.stanford.edusofi.com.

Cincinnati, OH (MSA): The Cincinnati region mirrored Ohio’s overall trend. Hamilton County (the core of the Cincinnati MSA) endured a severe foreclosure wave in the late 2000s. Between 2006 and 2013, over 22,000 homes in Hamilton County were sold at sheriff’s auction due to foreclosure​ cincinnati-oh.gov. The foreclosure rate peaked around 2010–2011 and exceeded 3% of homes at the height of the crisis​ cincinnati-oh.gov cincinnati-oh.gov. After 2013, foreclosures “dropped off steeply” in Cincinnati​ cincinnati-oh.gov. By the mid-2010s the foreclosure rate in the county fell below 1%​ cincinnati-oh.govcincinnati-oh.gov, and it has remained low through today. In 2023, Cincinnati was not among the hardest-hit metros; Ohio’s foreclosure distress is more concentrated in areas like Cleveland (which had a 0.62% rate in 2023, highest in the nation)​ attomdata.com. Cincinnati’s foreclosure metrics are now modest, roughly in line with national averages (on the order of 0.2–0.3% annually).

Savannah, GA (MSA): Savannah’s housing market underwent the same boom-bust cycle as the rest of Georgia. During 2010–2012, the Savannah area saw elevated foreclosures as subprime loans reset and unemployment spiked. (Statewide, Georgia’s foreclosure filings peaked in 2010–2011, and Savannah was part of that trend.) Precise MSA-level data for those years is sparse, but **Georgia’s overall foreclosure rate in 2009 was 2.68%**​ fcic-static.law.stanford.edu, implying Savannah also experienced foreclosure rates in the few-percent range at the crisis peak. Current situation: As of the last 1–2 years, Savannah’s foreclosure activity is much reduced. Georgia’s 2023 foreclosure rate (~0.25%)​ sofi.com suggests Savannah’s rate is similarly low, likely well under 1%. The Savannah HMA has had a strong housing recovery; home prices and sales are up, and foreclosure-related distress is minimal. In short, Savannah’s foreclosure rate today is a fraction of what it was in 2010, reflecting the statewide improvement.

Indianapolis, IN (MSA): Indianapolis, the largest metro in Indiana, was heavily impacted by the foreclosure crisis, though more so in the early 2010s as the backlog worked through. By the end of 2011, Indiana had a record 4.9% of mortgages in foreclosureibrc.indiana.edu, and many were in metro areas like Indianapolis. Indeed, foreclosure rates in Indiana’s cities were persistently high for over a decade leading into the 2010 peak​ ibrc.indiana.edu. The Indianapolis area saw thousands of foreclosures annually during 2008–2012, contributing to blight and depressed prices. Since then, conditions have drastically improved. The foreclosure rate in Indianapolis now is only a few tenths of a percent per year, similar to the state average (~0.3%). By 2023, Indianapolis was not singled out among high-foreclosure cities nationally, meaning its foreclosure rate has normalized. (One recent note: Indianapolis did face an issue with **“zombie” foreclosures – vacant homes in foreclosure – ranking 3rd in that category in 2024​ fhcci.org. However, overall foreclosure frequency remains low.) In summary, Indianapolis’s foreclosure trend went from crisis-level highs in 2010–2011 to low, stable levels today, paralleling the state’s broader recovery.

Foreclosure Trends (2010-2013 vs. 2023):

2010 2013 2023
U.S. Foreclosure Filings 2.87 million properties (peak) – 2.23% of homes 1.36 million properties – 1.04% of homes 0.357 million properties – 0.26% of homes
Ohio Foreclosure Rate ~2.0% (est.; ~1 in 50 homes) – 85k+ filings 1.53% (1 in 65) – Top 5 state ~0.10% (1 in 955) – Top 5 state
Georgia Foreclosure Rate 3.25% (1 in 31) – Top 10 state ~1.0% (approx; not top 5 by 2013) ~0.02% (1 in 5,675) – Mid-pack nationally
Indiana Foreclosure Rate ~1.5% (est.; 4.8% of loans in foreclosure Q4 2010) ~1.0% (est.; gradually improving) 0.087% (1 in 1,144) – 10th highest state
Cincinnati (MSA) High defaults (5,581 in 2013) – heavily impacted Improving by 2013; filings down from peak Low in 2023 (est. ~0.1%); foreclosures up slightly YOY
Savannah (MSA) Surge in 2010 (~2%+); part of GA crisis Much improved by 2013 Very low in 2023 (~0.02% or less)
Indianapolis (MSA) Elevated in 2010 (~1%+ of loans) Still above avg in 2013 ~0.08-0.1% in 2023; among higher metros in Midwest

Notes: Foreclosure rates denote % of housing units with a filing in a given year, except Indiana 2010 which is % of mortgages in foreclosure (Q4). The decline from 2010 to 2023 is evident across all geographies (illustrating the winding down of the subprime foreclosure crisis and the impact of loan modifications, economic recovery, and recent foreclosure moratoria during COVID-19).

Insights & Conclusions

  • Foreclosure Trend Insight: The foreclosure landscape has improved dramatically from the subprime crisis era (2010-2013) to now. National foreclosure rates are roughly one-tenth of what they were at the peak of the crisis. For example, 2010 saw over 2.2% of mortgages in foreclosure vs. just 0.26% in 2023. States like Ohio, Georgia, and Indiana, which were heavily impacted, have seen foreclosure volumes fall by 90%+ over the past decade. However, legacy impacts linger: Ohio and Indiana still rank among the higher foreclosure-rate states today​ nationalmortgageprofessional.com, partly due to economic factors and leftover distressed loans (e.g., post-pandemic backlog​ propstream.com). Meanwhile, Georgia’s foreclosure rate has normalized to low levels. This underscores that local economies and legal processes influence recovery – states with judicial foreclosure (Ohio, Indiana) can see backlogs, whereas Georgia’s non-judicial process cleared backlogs faster in the early 2010s.
  • Comparative Regional Insight: Among the MSAs, Cincinnati and Indianapolis had more persistent foreclosure issues, aligning with state trends (Midwest industrial regions recovering slowly). Savannah’s housing market proved more resilient, likely buoyed by milder price swings and faster recovery in Georgia. All three MSAs are in far better shape foreclosure-wise now than ten years ago. Any comparison over a 5-year horizon shows minor fluctuations (often policy-driven, such as COVID forbearances) compared to the seismic 10-year improvement.