Montana’s Pre-Foreclosure Surge Signals Emerging Struggles for Homeowners

A 340% Spike in One Month Paints an Alarming Picture in the Big Sky State

By most outward measures, Montana doesn’t fit the image of a state in housing distress. It is a place where the horizon expands uninterrupted and the stockyards of fiscal pain, job losses, skyrocketing eviction rates, and homelessness are quieter than in the bright-lettered headlines from America’s coastal cities. But dig a little deeper, and the ground begins to shift. In September 2024, Montana saw a dramatic 340% increase in pre-foreclosure filings compared to the previous month, rising from just 5 properties in August to 22 in September.

This surge sits uneasily within a broader national conversation about economic resilience in the wake of inflationary pressures, tightening housing supply, and the slow exit from pandemic-related support structures. While Montana’s numbers may appear modest on their own, the steep month-over-month increase is drawing renewed attention to the vulnerabilities of homeowners in rural states.

At the core of each statistic is a human story, people like Kathy Andersen, a single mother living on the outskirts of Billings who found herself confronting legal notices from her mortgage servicer after a string of inconsistent seasonal jobs dried up over the summer.

“I didn’t think it would come to this,” Andersen said. “I’ve always kept up. Even if I was late, I paid. But now it’s like the numbers just stopped adding up.”

A Tale of Two Trends: Year-over-Year Decline vs. Monthly Surge

What makes the situation in Montana complex to parse is the presence of conflicting signals. Compared to the same month in 2023, this September actually showed a 45% decrease in pre-foreclosure filings. In September last year, there were 40 such filings across the state, twice as many as this year. But that slowdown must be placed in proper context. The 2023 total was part of a post-pandemic spike, marking a return to historical norms after nearly a decade of suppressed foreclosure activity.

In other words, the decline from last year could be seen as a reversion to a more stable baseline. Yet the September surge from just one month earlier complicates that narrative.

“A 340% increase in just a month suggests people are starting to hit a wall,” said Greg Heller, a nonprofit housing counselor based in Missoula. “We’re getting more calls from families that used to make it work but can’t anymore. There’s a breaking point happening right now.”

Looking Back: Foreclosure Cycles in Montana’s Recent Past

Historically, Montana’s pre-foreclosure trends mirrored national patterns, peaking during the financial crisis years. Between 2009 and 2012, pre-foreclosures in the state exceeded 2,000 annually, an extraordinary number for a state with a comparatively sparse population. The worst year came in 2011, when the total reached 2,466.

That era gave way to a near-decade of relief. Numbers dropped steadily, hitting a low of 82 pre-foreclosures in 2020. But the narrative shifted again in 2023, when filings jumped to 430 across the year, indicating mounting financial strain.

As of September 2024, Montana has recorded 139 pre-foreclosure filings for the year, a figure that, when annualized, puts the state on track to closely mirror last year’s totals. That may not sound alarming, but the monthly volatility in 2024 hints at growing instability across local economies.

“Montana has always had a pretty stable housing market, but our affordability problem has changed that,” said Heller. “We’re building less, prices are up, and people are being squeezed by everything from gas to groceries.”

The Quiet Squeeze: Inflation and Affordability Collide

Montana is no longer exempt from the twin pressures of inflation and housing scarcity. Over the past several years, the state has seen an influx of remote workers and retirees from out of state, drawn by the scenery and lifestyle. That influx, however, has reshaped housing markets, pushing longtime residents further to the margins.

For households already living paycheck to paycheck, any rise in expenses, from utilities to prescription medications, can tilt a delicate balance. Combine that with rising interest rates for adjustable mortgages and expiring pandemic-era forbearance programs, and signs of stress begin to appear quickly.

“These aren’t cases of reckless borrowing,” said Sarah Walters, a legal aid attorney in Helena. “These are working-class folks who were holding it together with duct tape. And that tape is coming undone.”