Ohio Pre-Foreclosure Rates Drop Sharply Year-Over-Year, But Struggles for Homeowners Persist

A Look Into the Lives Behind the Numbers — Ohio’s Pre-Foreclosure Landscape

In Ohio, stability in the housing market has long been more aspiration than reality for thousands of working-class families. And while the state’s pre-foreclosure filings have seen a significant year-over-year decline, the underlying conditions pushing homeowners to the brink remain persistent, and in many cases, painfully personal.

According to the most recent data, September 2024 marked a total of 1,155 pre-foreclosure filings across Ohio, properties where homeowners have defaulted on their mortgage but have not yet reached full foreclosure. This represents a modest 1.76% increase from the 1,135 reported in August. But in broader view, it’s a steep 35.4% decline from September of last year, when Ohio saw 1,789 such filings.

This year-over-year drop might seem like good news, a sign that the housing market is regaining its footing. But when you zoom into the lives behind those numbers, the story becomes far more complicated.

The Numbers Don’t Tell the Whole Story

For many Ohioans, the lull in pre-foreclosure activity isn’t due to better financial health but rather a combination of temporary government support, loan modifications, and deferred payment agreements that appear to be winding down after pandemic-era protections.

In Dayton, Stephanie, a single mother of two working as a home healthcare aide, received notice in August that she was behind on her mortgage by three months. “I’ve never been in this position before,” she says, holding back tears. “Rent went up everywhere. Food, gas, everything. I had to choose between groceries for my boys and my mortgage.”

Stephanie is now one of over 1,100 Ohio homeowners navigating the gray zone that is pre-foreclosure, still technically in ownership of her home, but unsure how long she will be able to hold on.

Slowly Rising Pressure in 2024

While September’s 1.76% uptick from August is slight, it underscores a gradual but growing pressure on homeowners. The year-to-date total for Ohio, 10,038 pre-foreclosure filings from January through September indicates that the state is on pace for around 13,000 filings by the end of the year if the trend continues.

Although still far from the crisis of a decade prior, 2013 saw a peak of over 133,000 filings. The sentiment on the ground suggests a creeping undercurrent of economic instability.

Inflation has cooled slightly compared to the highs of 2022, but prices for essentials remain elevated. For many families living paycheck to paycheck, even a minor disruption; a car repair, a missed shift, or a cutback in hours, can tip the scales.

A Long Road From the Crisis Years

To understand the current picture, it helps to look back.

Ohio’s housing distress reached its zenith in the early 2010s, peaking in 2013 with more than 133,000 pre-foreclosure filings. That era, marred by the lingering effects of the Great Recession and a sluggish recovery, devastated entire neighborhoods in cities like Cleveland, Toledo, and Akron. Hundreds of homes stood vacant, hollowed out by financial despair.

Since then, the state has seen a broad and steady decline in such filings. By 2021, during the height of pandemic protections like foreclosure moratoriums and stimulus aid, Ohio tallied just 7,790 pre-foreclosure, the lowest in nearly two decades.

But cracks began to show in 2022, with filings more than doubling to 19,710. And in 2023, they held steady at 20,351.

Although the 2024 numbers suggest a respite, they must be considered in the context of economic strain and shifting federal support.

Final Thoughts

September 2024’s drop in Ohio pre-foreclosure filings, down more than a third from the previous year, should not obscure the fragility of many homeowners’ lives in the state. The recovery from past crises is real but uneven. The market today may be more stable, but not necessarily fairer.

In the math behind mortgages and market statistics, it’s easy to forget the human cost. Behind every one of those 1,155 pre-foreclosures, this September is a family trying to find their footing. And until the economic systems that surround them become more responsive to their needs, the shadow of foreclosure will continue to hang heavy over too many Ohio homes.