The Burden of Homeownership: Mississippi’s Pre-Foreclosure Crisis in 2024

On paper, Mississippi’s pre-foreclosure numbers for June 2024 appear to tell a cautiously optimistic story. The statewide total of 93 pre-foreclosure properties is a sharp drop from the 184 families who faced the same fate in June 2023. That’s nearly a 50% decrease year-over-year, an indication that, at least statistically, fewer homeowners are struggling to hold onto their properties. However, the numbers also show a 12% increase from last month, suggesting that distressing financial trends have far from disappeared.

But numbers alone don’t capture the quiet desperation of families who, despite working long hours, juggling multiple jobs, and cutting all non-essential expenses, find themselves slipping toward financial instability.

A Year of Mixed Signals

For many homeowners, 2024 was supposed to bring relief after a turbulent economic period. And in some ways, it has. Compared to the surge in pre-foreclosures in 2023, which totaled over 2,000 cases, 2024 is trending downward. The first half of this year has recorded 720 total pre-foreclosures, a number that, if it continues at this pace, will be noticeably lower than last year’s final count.

At a glance, this might seem like an encouraging trajectory—until you consider the lived reality of those still teetering on the edge.

“I’ve always believed if you work hard, you can keep your home,” said Angela McCallister, a Jackson resident who has lived in her house for 14 years. But after a series of financial setbacks—her husband’s reduced hours at a manufacturing job, rising insurance premiums, and an unexpected medical bill—Angela missed her first mortgage payment in April. A second missed payment followed, and then came the notice of pre-foreclosure.

“One month, you’re paying bills. The next, you’re trying to figure out if you need to sell your furniture just to afford groceries,” she said.

Angela’s struggle reflects a growing reality for lower-income and working-class families in Mississippi. Though inflation has cooled somewhat from its peaks in 2022 and 2023, the cost of living remains stubbornly high, wages have not kept pace, and pandemic-era financial aid has long since ended.

Why Are Mississippi Homeowners Struggling?

Economic inequities in Mississippi have always placed a disproportionate burden on its most vulnerable residents, and the recent pre-foreclosure data suggests that, even as overall numbers trend downward, financial hardship has not disappeared—it has simply shifted.

The key forces driving mortgage distress are:

• Inflation Strains Household Budgets
  While inflation has slowed overall, essentials like food, utilities, and insurance have continued to rise, leaving homeowners with less room in their budgets for mortgage payments.
• Higher Interest Rates on Mortgage Adjustments
  Those with adjustable-rate mortgages are feeling the sting of Federal Reserve rate hikes, which have made homeownership more expensive in many cases.
• Limited Wage Growth
  While jobs have returned, wages for many in Mississippi remain stagnant, making it difficult for families to absorb unexpected expenses without falling behind on payments.

The Shadow of 2023—and What Comes Next

Mississippi’s pre-foreclosure numbers are no stranger to volatility. The state saw one of its worst foreclosure crises in 2009, when over 3,000 properties faced pre-foreclosure during the fallout from the Great Recession. Since then, numbers fluctuated—dipping in some years, spiking in others. 2023 was a particularly difficult year, as the pre-foreclosure count more than doubled from the 1,004 cases in 2022 to an alarming 2,021 properties affected.

In 2024, the big question is whether the recent dip in pre-foreclosures is sustainable—or if this is merely a temporary plateau before another wave of financial distress hits Mississippi homeowners.

Angela McCallister isn’t waiting around to find out. She has entered negotiations with her lender for a forbearance agreement, which could allow her to set up a new payment plan and avoid losing her home. But not every homeowner has that option. Many who fall behind on their mortgages don’t have the financial cushion to ever catch up.

A Future of Uncertainty

For now, Mississippi is on a delicate balancing act. By the raw numbers, things are better than they were a year ago—but not by enough to declare a recovery. Many families remain one unexpected crisis away from losing their home, and the rising pre-foreclosure count from May to June suggests that struggles are still bubbling beneath the surface.

While banks and lenders play a significant role in determining what happens next, policymakers and community leaders have an opportunity—perhaps even an obligation—to intervene. Expanding mortgage assistance programs, strengthening tenant protections, and increasing access to legal aid for struggling homeowners are all measures that could help keep families in their homes.

If history has shown us anything, it’s that what looks like a slow decline in numbers today can quickly become a renewed crisis tomorrow. Behind every statistic is a family clinging to their home, hoping for one more chance to make it work.