New Hampshire’s Pre-Foreclosure Decline: A Respite or a Deeper Crisis?

In the soft glow of a late-spring afternoon, Linda S., a single mother in southern New Hampshire, watches her two children play in the front yard of a home she may not own much longer. After nearly a decade in the modest three-bedroom house, a sudden spike in expenses—rising utility bills, an unexpected medical emergency, a stagnant paycheck—have left her teetering on the edge of foreclosure.

“I did everything right,” she says, exhaling deeply. “I worked hard, made my payments—until I couldn’t.”

Linda’s story is one of many. And though new data suggests New Hampshire’s pre-foreclosure rates have dropped significantly, a deeper problem still lingers: a housing market where even a small financial setback can send homeowners spiraling.

Looking at the Numbers: A Glimmer of Hope?

In June 2024, New Hampshire reported 53 pre-foreclosure properties, a sharp decline from both the previous month and the same time last year.

Compared to May 2024, when 64 homes were in pre-foreclosure, the decline stands at 17.19%—potentially a sign of stabilization in the housing market. The year-over-year drop is even more striking with a staggering 43.01% decrease from June 2023, when 93 properties faced foreclosure.

At first glance, these numbers seem promising. Fewer pre-foreclosures usually suggest that homeowners are managing to stay afloat—whether through loan modifications, state assistance programs, or intervention from nonprofit organizations.

But behind this statistical improvement lies a more complicated reality.

A Long-Term Perspective: Have We Truly Recovered?

To understand where New Hampshire’s homeowners stand today, we must look back at the broader trends.

During the 2008 financial crisis, pre-foreclosures surged, with the state’s numbers peaking in 2009 at 5,128 cases. The years that followed were marked by continued distress, with over 5,000 homes in pre-foreclosure in both 2011 and 2012.

By 2014, the crisis had cooled, but the stress never fully disappeared. Pre-foreclosure volumes remained well above 1,000 per year until more recent years, when they began tapering off dramatically.

Even last year, in 2023, New Hampshire recorded 1,169 pre-foreclosure cases—a worrying sign compared to recent lows. In 2024 there with 422 cases reported from January to June and the state seems to be on a gentler trajectory.

But does this mean New Hampshire families are safe?

Behind the Drop: Economic Conditions and Hidden Displacement

The decline in formal foreclosure filings doesn’t necessarily mean fewer people are struggling to pay their mortgages. Several factors may be contributing to this decline, both positive and concerning.

1. A Wave of Federal and State Interventions
   In the past few years, government programs—particularly those offering mortgage relief—have prevented delinquencies from turning into full-blown foreclosure crises. Homeowners have also seen short-term reprieves through lender forbearance plans. But as these safety nets begin expiring or tightening, the question remains: Are people truly recovering financially, or are they simply delaying an inevitable outcome?
2. High Home Prices: A Double-Edged Sword
   Unlike prior housing collapses, today’s homeowners who face foreclosure have an advantage that their 2008 counterparts didn’t: skyrocketing home values. For those who find themselves in a financial pinch, selling quickly might allow them to dodge foreclosure and even walk away with some equity intact. The downside? Many of them can’t afford to buy again—pushed into rentals where prices are higher and security is lower. This fuels a quiet displacement crisis, where fewer formal foreclosures occur, but homeownership rates steadily erode, leaving middle- and lower-income families locked out of the market.
3. The Gap Between Wages and Costs
   While pre-foreclosures may have dropped, affordability remains a challenge. Costs—from healthcare to groceries to insurance—continue rising, while wages for many remain stagnant. The disappearance of foreclosures might not signal stability as much as it does homeowners clinging to credit cards, side jobs, and even retirement savings to keep up with their mortgages.

Low-Income Homeowners: A Struggle Without End

For families like Linda’s, the drop in foreclosures offers little comfort. The core issue remains: even as properties stay out of pre-foreclosure, survival comes at a cost.

“After paying my mortgage, my phone bill, and my utilities, I have maybe $60 left—if I’m lucky,” she says, tallying receipts at her kitchen table. “It’s not sustainable.”

This isn’t just an isolated problem. In New Hampshire’s lower-income communities, the reality is grim: Potential homeowners are locked out of the market due to sky-high prices, and existing owners spend an ever-greater share of their income holding on.

And if even a small percentage of these homeowners ultimately falter, today’s good news—declining pre-foreclosures—could turn into tomorrow’s crisis.

Where New Hampshire Goes From Here

New Hampshire’s pre-foreclosure numbers have certainly improved from the volatility of the 2008-2012 housing crisis. While the drop is encouraging, it shouldn’t mask the underlying precarity felt by many residents.

The state’s housing market remains stretched, with affordability at the forefront of struggles facing working-class and middle-class families alike. Unless structural issues like wage stagnation and high home costs are addressed, New Hampshire’s homeowners may be living not in a period of recovery but in a delicate calm before the next storm.

As for Linda, she remains hopeful but uncertain.

“All I want is a little breathing room,” she says. “Isn’t that what everyone wants?”