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What the Foreclosure Headlines Aren’t Telling You
What the Foreclosure Headlines Aren’t Telling You
You may have seen headlines saying foreclosures are on the rise, and that can sound scary if you remember 2008. But today’s market is not repeating that crash, and the data shows a very different story.
Foreclosure filings are increasing, but they are still historically low compared with the last normal pre-pandemic years. That matters because 2020 and 2021 were distorted by foreclosure moratoriums, so they are not the right baseline for comparison. The 10 Best Markets for First-Time Buyers This Spring
Foreclosures Are Rising, But They’re Still Low
ATTOM reported that foreclosure filings rose 26% year over year in Q1 2026, with completed foreclosures also increasing. That is a real trend, but it is still far below the levels seen during the 2008 crisis.
The biggest reason the headlines can feel misleading is that the pandemic years were not normal. Government protections temporarily suppressed foreclosure activity, so today’s increase is better understood as a return toward normal market behavior.
See chart below.
The chart above shows foreclosure filings, starts, and completed foreclosures over time, and it makes the difference between today’s market and 2008 much clearer. Wondering if you should still buy a home right now? Wondering if you should still buy a home right now?
One of the biggest differences between today and 2008 is homeowner equity. ATTOM’s Q1 2026 report shows many homeowners are still equity-rich, while only a small share are seriously underwater.
That means many homeowners have a way out other than foreclosure. If they need to sell, they may be able to pay off their loan and preserve some proceeds instead of losing the home entirely. That is a major reason the current situation looks much healthier than the last crash.
See chart below.
This chart shows how today’s foreclosure activity is still below pre-pandemic norms, even with the recent increase. It reinforces the idea that this is a market normalization story, not a crash story. How your home equity can work for you. Is late May the best time to list your house?
What This Means Locally
In Sonoma, Marin, and Napa Counties, the same basic logic applies: rising filings do not automatically mean a collapse. Many homeowners still have enough equity to sell if needed, and that makes a huge difference in how distress plays out.
If you are watching the market in Petaluma, Santa Rosa, Novato, San Rafael, or Napa, the more useful question is not “Is this 2008 again?” The better question is “What options do homeowners have before foreclosure ever happens?” That is where local guidance matters. Katia Bidaurreta Sonoma, Marin, and Napa real estate.
If You’re Struggling
If you are behind on payments, do not wait. Lenders often have more options than people think, including repayment plans, forbearance, or loan modifications. The sooner you reach out, the more room there is to find a solution.
If selling would make more sense, a real estate agent can help you understand what your home is worth and whether that is a realistic path. That conversation can be the difference between reacting late and making a plan early. Visit Katia’s Home Seller’s Guide.
Bottom Line
Foreclosure filings are up, but they are still low by historical standards. Today’s homeowners also have far more equity than they did in 2008, which gives them more flexibility and helps prevent a repeat of that crash.
Thinking about selling this spring? Learn how staging your house can help you sell faster and for more in Sonoma, Marin, and Napa Counties.
Is late May the best time to list your house? Explore the North Bay selling window with charts, timing tips, and Katia Bidaurreta’s local guidance.
Think you need 20% down? Most first-time buyers don’t. See what buyers really put down and how Katia Bidaurreta can help in Sonoma, Marin, and Napa.
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Wondering If You Should Still Buy a Home Right Now? Here’s What To Keep in Mind
When buying a home feels out of reach, what are some families doing instead? They're buying multi-generational homes together in Sonoma, Marin, and Napa Counties—pooling incomes to afford $773K-$1.3M medians while grandparents help with childcare. Sonoma, Marin, Napa Affordability Crunch You crunch the numbers for a Petaluma 3-bed at $958K. Add $1,800/month childcare. Something gives. Sonoma medians sit at $773K, Marin $1.3M+, Napa luxury higher. Rates near 6% help, but down payments and daycare eat budgets. Families adapt: multi-generational buys. NAR says 14% of 2025 buyers went this route—up sharply. Childcare (6%) and grandkids (12%) now top reasons. In wine country, ADU-friendly homes make it work. Katia Bidaurreta at Compass sees it daily. Her Petaluma clients buy Santa Rosa properties with in-law suites. Finance background spots the math. How Multi-Gen Living Works Here Parents, grandparents, sometimes aunts buy together. Shared mortgage. Built-in childcare. Napa vineyard views for all. Solves two problems: Splits $4,500 payments three ways. Cuts $18K/year daycare when grandma watches kids. Why It's Growing Fast Sonoma inventory up, but prices firm. Marin families priced out of Mill Valley pivot to Novato multi-gens. Napa seeks estate-style with guest houses. Your Rohnert Park starter won't cut it. Buyers want: Must-Have Home Features Downstairs primary suite Separate entrance ADU Big kitchen for family meals 4+ beds, office flex Sonoma Plaza walkable or Marin views Pool/hot tub for grandkids Petaluma farmhouses convert garages easy. Santa Rosa new builds include casitas. Questions Before You Buy Who's on title? Loan? What if grandma moves? How split utilities, repairs? Privacy enough? Exit plan in 5 years? Talk attorney first. Katia connects you—stays in real estate lane. Local Examples That Work Petaluma: $1.1M craftsman, main house + ADU. Three incomes qualify easy. Novato: $1.5M mid-century, guest wing rented for mortgage offset. Napa: $2M vineyard estate, grandparents get pool house. Katia closed similar: Portuguese family pooled for Santa Rosa 5-bed. "Made homeownership real," they said. Watch Out For These Family drama over decisions One person wants out, others can't buy Zoning limits ADU short-term rental Inheritance fights later Compass title partners smooth ownership splits. Your Next Move Multi-gen beats waiting. Sonoma's 42-day market moves if priced right.
Conversational Question: My Sonoma County home hasn't sold yet—should I rent it out instead?
