Oklahoma Homeowners Face Rising Pre-Foreclosures as Economic Pressures Mount

OKLAHOMA CITY — On a quiet street in Tulsa, a single mother of two opens another envelope from her mortgage servicer. The letter, like the ones before it, carries dire warnings: overdue payments, impending legal action, the looming threat of foreclosure. She has been here before—counting every dollar from her paycheck, stretching groceries, forgoing repairs on the aging family car. But this time feels different. This time, she might lose the home she fought so hard to keep.

That fear—the anxiety of not knowing if the house that shelters a family today will still be there tomorrow—is growing across Oklahoma. The latest data indicates 276 homes entered pre-foreclosure in September 2024, an 18.97% increase from August, underscoring the increasing financial strain on homeowners amid inflation and rising costs.

A Market in Flux

Pre-foreclosure, a process that begins when a homeowner defaults on their mortgage payments before formal foreclosure proceedings start, marks an early warning sign of economic distress. While September’s numbers show an uptick compared to August’s 232 pre-foreclosures, they remain significantly lower than the 376 recorded in September 2023—a 26.6% decrease.

This decline, however, does not tell a straightforward story of improvement. The pandemic-era protections that kept struggling families in their homes have largely faded away, leaving many exposed to the same financial pressures that drove foreclosures a decade ago. While Oklahoma’s pre-foreclosure numbers are still far below the peak seen in 2010 (15,361 pre-foreclosures) amid the aftermath of the Great Recession, the post-pandemic housing stability many hoped for remains elusive.

In the first nine months of 2024 alone, 2,111 pre-foreclosures have been recorded across the state. That figure suggests Oklahoma may surpass 2022’s annual total of 3,417 pre-foreclosures, signaling a slow but steady rebounding of distress in the housing market.

Who Is at Risk?

For homeowners like the one in Tulsa, financial strain is not the result of a single misstep but a series of pressures that stack on top of one another. Inflation has made everyday expenses more expensive. Interest rates remain high, meaning fewer refinancing opportunities exist for those trying to lower their monthly payments. And stagnant wages, particularly for low- and middle-income earners, have made it harder to cover rising costs.

“The cost of living keeps going up, but my paycheck has stayed the same,” said Raymond Carter, a 52-year-old Oklahoma City resident who fell behind on his mortgage after an unexpected medical expense drained his savings. “It feels like I’m working just to stay in place, and now even that isn’t enough.”

This experience is not unique to Carter. Across Oklahoma, rising insurance premiums, property taxes, and utility costs are quietly eating away at household budgets. Families who once lived comfortably are now one unforeseen expense away from serious financial trouble.

While some homeowners have managed to stay ahead by taking on second jobs or dipping into retirement savings, these measures are only temporary.

The Bigger Picture

Oklahoma’s housing distress mirrors broader national trends. Even as the employment rate holds steady, high inflation and an increasingly unaffordable housing market are forcing more homeowners into financial difficulty.

The 2021 dip in pre-foreclosures—when only 533 cases were reported statewide—was largely artificial, driven by government stimulus efforts and foreclosure moratoriums. In contrast, 2024’s numbers reflect real, lived conditions: an economy where affordability is shrinking, and a financial safety net is growing thinner.

Historical data tells us that Oklahoma has seen far worse. From 2009 to 2013, double-digit foreclosure rates devastated neighborhoods, leaving entire communities hollowed out. Though today’s numbers are not yet approaching those levels, the gradual rise in pre-foreclosures suggests that many families remain precariously close to falling into crisis.

A Fight for Stability

As pre-foreclosure filings increase month over month, housing advocates worry that many homeowners lack options. For some, selling may be a way out, but a cooling housing market—where demand has slowed due to rising mortgage rates—may limit that possibility.

For others, intervention may come in the form of government assistance or loan modifications, though navigating those programs can be confusing and time-consuming.

“People think foreclosure only happens when someone is irresponsible,” said Lisa Montoya, a foreclosure prevention counselor in Norman. “But most of the time, these are hardworking people who had a medical emergency, lost a job, or were hit with an unexpected expense. They aren’t reckless—they’re drowning.”

That reality is why advocates urge struggling homeowners to seek help early. Programs exist to offer financial counseling, mortgage intervention, and legal assistance—but only for those who act before reaching critical delinquency stages.

What Happens Next?

Oklahoma’s pre-foreclosure rates remain significantly lower than pre-2019 levels, but the data suggests that more families could be at risk if economic conditions do not improve. If inflation persists, consumer debt levels increase, or job market disruptions emerge, the state could see an even sharper rise in pre-foreclosures in the coming months.

For now, families like the one in Tulsa keep opening their mail with growing apprehension, wondering if the next letter will be the one that changes everything. Their stories are not just numbers in a dataset but reminders of the broader economic struggles shaping Oklahoma’s housing market.

And if history has taught us anything, it is that crises in housing do not unfold overnight. They build quietly—one family, one missed check, and one notice at a time.