North Carolina Pre-Foreclosure Rates Show Mixed Signals in 2025: A Closer Look at the Human Cost

Housing Pressures Mount for Struggling Families as Economic Headwinds Return

In May 2025, a quiet crisis unfolded in neighborhoods across North Carolina. Some 823 homes were flagged in the pre-foreclosure process—a technical classification that often signals much more than trouble paying the mortgage. It can be the first formal indication that a family is dangerously close to losing their home.

While the number represents a 15.33% decrease from April’s 972 pre-foreclosure filings, it still reflects a 9.15% increase compared to May of the previous year. Those statistics, dry as they may seem, mask the lived experiences of hundreds of households caught between rising costs and shrinking options.

“Every time the mortgage bill comes, I feel a pit in my stomach,” says Angela Coleman, a single mother of two in Greensboro. Angela lost her part-time job at a local dental clinic earlier this year following a wave of staff reductions. Since then, she’s been juggling gig work and childcare with no health benefits and increasing food costs. “It’s not that I don’t want to pay. It’s that I *can’t*.”

Angela’s story is one among hundreds unfolding monthly across the state—and her name has been changed to protect her privacy.

A Momentary Dip or a Sign of Stabilization?

On the surface, fewer pre-foreclosures in May might sound like good news. And in some respects, it is. A decrease of more than 15% from April could suggest that recent efforts—whether local assistance programs, loan modifications, or short-term economic easing—are helping homeowners get back on stable footing.

But zoom out slightly, and the picture becomes less optimistic. When compared to May 2024, this month’s total represents a 9.15% increase in pre-foreclosure activity, signaling that the broader trend is still upward. And with five months of 2025 on the books, North Carolina has already seen 4,543 pre-foreclosure filings. If this monthly pace were to continue, the state could surpass 10,900 filings this year—a notable rise from 10,124 seen in all twelve months of 2024.

In isolation, these numbers might not set off alarms. But taken in context with cumulative data over the past two decades, this year is beginning to look like a continuation of a slow and steady climb out of the pandemic-era trough.

Understanding the Historical Context: A Story of Crises and Corrections

To understand today’s numbers, it’s important to revisit the housing struggles of previous decades. North Carolina’s pre-foreclosure activity peaked in the years following the 2008 financial crisis. In 2010, over 37,000 homes were flagged statewide, followed by even higher numbers in 2011 and 2012.

That era was defined by toxic subprime loans, mass unemployment, and a speculative housing bubble bursting–all conspiring to push thousands out of their homes. Since those peaks, filings declined steadily, dipping to just over 4,600 in 2021. Much of that drop coincided with federal eviction moratoriums, mortgage forbearance programs, and increased housing assistance driven by the pandemic and its economic fallout.

But even as moratoriums lifted and aid programs wound down, inflation soared and housing affordability plummeted. In 2022, pre-foreclosures in North Carolina began creeping back up, hitting over 16,000 by 2023. In 2024, the pace slowed somewhat, possibly due to economic recovery measures or market adjustments, ending the year with 10,124 filings.

However, 2025’s current pace suggests the decline may have been temporary, not a recovery, but a pause.

The Ripple Effect of Rising Inflation and Wage Stagnation

Many homeowners now find themselves caught between fixed mortgage payments and a swelling cost of living. Renters often bear the brunt of price swings, but homeowners are increasingly impacted in unexpected ways—from rising property taxes to inflated utility bills and home maintenance costs.

According to recent economic reports, inflation has edged down but remains above the Federal Reserve’s 2% target. Meanwhile, wage growth has slowed. That imbalance cuts deep for North Carolina’s working-class families in sectors like retail, agriculture, and healthcare support, industries that offer essential services but inconsistent or insufficient pay.

“Medical debt, childcare, utilities—everything’s gone up,” says Brandon James, a warehouse worker in Fayetteville who defaulted on two mortgage payments earlier this spring. “Paychecks haven’t. At some point, something has to give.”

For many, that “something” turns out to be their house.

Conclusion

In May 2025, 823 households in North Carolina were on the brink of losing their homes. That’s a 15.33% decrease from April, but still a 9.15% rise from last year. These numbers come amidst broader concerns about inflation, wage stagnation, and affordability—all pressing down hardest on families already on the economic margins.

Without access to more local data, what lies ahead for North Carolina remains uncertain. But if history is any indicator, what begins as a statistical trend on paper can quickly erupt into thousands of families looking for a place to call home.

And for those in pre-foreclosure, that future may feel closer than ever.