The Quiet Crisis: Oregon’s Pre-Foreclosures Decline, But the Struggle Persists

The number of homeowners in Oregon teetering on the edge of foreclosure has been steadily declining this year. In September, 117 homes entered pre-foreclosure, an 8.59% drop from last month and an astonishing 59.24% decline from September of last year.

At first glance, this is welcome news. Fewer foreclosures suggest that homeowners are regaining financial stability, and perhaps the job market, albeit uncertain, is providing people with just enough to hold on. But step inside the homes of those still at risk of losing everything, and the numbers take on a much grimmer reality.

Small Improvements, Deep-rooted Problems

For families like the Garcias in Eugene, the downward trend in pre-foreclosures is no reassurance. Maria Garcia, a single mother of two, has been struggling to make her mortgage payments ever since rental costs skyrocketed last year, forcing her to dip into savings just to make ends meet. “You keep hoping things will get better. You take extra shifts. You cut back. But every month, it starts to feel like the walls are closing in,” she said.

Maria isn’t alone. While Oregon’s rising home prices in recent years created wealth for some, they left others barely holding on—especially first-time buyers who purchased homes at historically low interest rates in 2020 and 2021, only to see costs of living increase exponentially. Inflation, stubbornly high housing costs, and the ripple effects of the Federal Reserve’s battle against rising prices have left lower-income and middle-class homeowners walking on financial tightropes.

A Market in Flux

Looking beyond the monthly snapshot, Oregon’s pre-foreclosure records over the last two decades reveal a market still reshaping itself.

In 2010, at the peak of the housing crisis, Oregon saw 37,234 pre-foreclosures—a catastrophe that devastated thousands of families. The years following that collapse brought slow but steady relief, with a record low 294 pre-foreclosed homes in 2021.

But then came 2023. Homeowners across the state once again saw rising delinquencies, culminating in 3,188 pre-foreclosures that year—a sharp increase from 2022’s 1,939 cases. Then, something changed. From January to September 2024, the total number of pre-foreclosures was 1,294, indicating a steep drop from last year.

The question is: How permanent is this shift?

Signs of Relief or the Calm Before Another Storm?

Some experts suggest that foreclosure levels are normalizing after the disruptions of the pandemic years. Rising wages in some sectors, combined with steady job growth in parts of the state, may be helping a subset of Oregonians dig themselves out of the financial holes they fell into during the height of inflation.

But others worry that these lower numbers don’t reflect the full picture. Programs designed to help homeowners behind on payments—such as loan modifications and temporary forbearances—are starting to expire. Some families who were barely holding on might yet find themselves pushed over the edge.

“It’s not just about paying the mortgage,” explained housing counselor Lisa Tran, who works with struggling homeowners in Portland. “It’s homeowners who were already at their financial breaking point having to deal with rising insurance costs, utility bills, food prices. It’s a slow squeeze. And for some, it’s too much.”

The Human Cost of Housing Insecurity

For those outside the housing industry, pre-foreclosures are a technical term. A bureaucratic statistic that suggests distress but doesn’t quite capture its toll.

For the Johnsons, a retired couple in Bend who purchased their home in 2019, pre-foreclosure feels like a slow unraveling of the life they built. After unexpected medical bills drained their retirement savings, they fell behind on their mortgage for the first time in decades.

“Nobody expects to go into retirement worrying about losing their home,” said Mr. Johnson. “We did everything right. We saved, we planned. And now? We’re just hoping we can make it.”

These are the untold stories behind the numbers. The 117 homes in pre-foreclosure this month aren’t just properties in default. They are people—families, retirees, single parents—each facing the terrifying possibility that the place they call home could soon be taken away.

What Comes Next?

If the sharp year-over-year decline in Oregon’s pre-foreclosures offers any hope, it’s that fewer homeowners are financially spiraling than last year. However, a cooling foreclosure market does not mean struggle has disappeared.

For now, the question is whether Oregon will learn from past foreclosure crises and implement permanent solutions—affordable housing developments, stronger foreclosure assistance programs, and wage growth that keeps up with home prices.

If history has shown anything, it’s that foreclosure spikes don’t just happen out of nowhere. They build quietly, beneath the surface, until the first cracks start to show. For too many Oregonians, those cracks are already visible.