North Dakota’s Pre-Foreclosure Surge: A Crisis Escalating in Plain Sight

The home had been in Lisa Johnson’s family for nearly three decades. A modest two-bedroom house in the heart of North Dakota, it was the embodiment of hard work, sacrifice, and stability for her three children. But when inflation chipped away at Lisa’s paycheck, and medical bills arrived faster than she could pay them, the letters started coming. At first, they were polite warnings from the bank. Then, in April, came the notice that her home was in pre-foreclosure.

“My whole life is in that house,” she said, blinking back tears. “And now I don’t know if I’ll be able to keep it.”

Lisa’s story is becoming an increasingly familiar one in North Dakota. The state’s pre-foreclosure numbers are surging, with data showing a 22.7% increase from May to June 2024 and a staggering 58.8% rise compared to June last year. The distress signals are unmistakable — families struggling under the weight of economic instability, sky-high interest rates, and a housing market that has become unforgivingly harsh for the working class.

The Numbers Behind the Crisis

Numbers often tell the story before people do. This June, 27 homeowners in North Dakota entered pre-foreclosure, up from 22 in May. In June 2023, that figure was only 17. These increases are not anomalies; they are the continuation of a trend that has been accelerating since the waning days of the pandemic.

A broader look at pre-foreclosure figures over the years paints an unsettling picture:

• • 2023 saw 226 pre-foreclosures statewide, the highest number in nearly two decades.
  • That was up dramatically from 140 in 2022, and more than double the 54 cases recorded in 2021—a year when foreclosure moratoriums kept many families in their homes.
  • Extrapolating from the first six months of this year, 2024 is on pace to match or even surpass 2023’s record-high total.