Pennsylvania’s Pre-Foreclosure Numbers Show Signs of Hope — But Not for Everyone

A Deep Dive into September’s Housing Instability and the Struggles Behind the Statistics

In towns across Pennsylvania, from the rolling hills of rural counties to the edges of its industrial cities, thousands of homeowners live with a quiet, invisible weight: the fear of losing the place they call home. For most, foreclosure begins not in a courtroom, but in unnoticed mail, missed payments, and long nights calculating which bill can go unpaid.

This September, 668 homes in Pennsylvania entered pre-foreclosure, a small but noticeable 3.25% increase from August, when 647 properties were listed. But in a broader context, it’s a far cry from the tide of housing distress that overwhelmed the state in past years. In fact, in September 2023, more than 2,100 homes faced pre-foreclosure which means today’s number reflects a staggering 68.4% year-over-year drop.

On its face, these numbers suggest progress. But a closer look reveals that while the crisis has shrunk, it hasn’t vanished and many of those remaining at risk live paycheck to paycheck, teetering on the brink of financial collapse.

A Brief Respite or Systemic Recovery?

At a time when mortgage interest rates hover above 7% and inflation has stamped its mark on everything from groceries to gas, the decline in statewide pre-foreclosure activity seems, at first glance, counterintuitive.

But context is everything. Pennsylvania’s pre-foreclosure filings have dropped steadily since 2010, when the aftershocks of the housing bubble collapse pushed annual pre-foreclosure counts to their devastating peak: 68,462 homes.

Since then, the numbers have softened year after year, thanks to a mix of judicial reforms, loan modifications, and more cautious lending practices. After pandemic-era protections like eviction and foreclosure moratoria kicked in, filings fell even faster. Now, in 2024, the state appears on track to record the lowest number of pre-foreclosures in two decades, with only 9,525 filings through the end of September.

Unless there’s an unexpected and dramatic spike in the final months of the year, 2024 could offer a sliver of hope amid longstanding despair.

But for those still on the brink, data offers cold comfort.

The Fault Lines Beneath the Recovery

A 3% month-over-month rise in pre-foreclosure activity may seem small, but viewed through the lens of household budgets constantly under pressure, each uptick represents dozens of families on the verge of economic destabilization.

Take Carmen Alvarez, a single mother of three living outside Reading. She bought her home in 2018 with savings scraped together from two jobs and help from a local housing nonprofit. Through the pandemic, she held on. But when her hours at work were cut and childcare costs ballooned in early 2024, the financial strain became too much. By June, she’d missed two mortgage payments.

“I was too ashamed to tell anyone,” Carmen said. “You always think, ‘I’ll figure it out next month.’ And then one day, you get a letter saying they’re starting foreclosure.”

Her home, the place her children have always known, now sits in pre-foreclosure limbo, uncertain like so many others. Technically, she’s still the owner. But unless she negotiates a solution with her lender, ownership may soon become a memory.

Housing Affordability and an Eroding Safety Net

While the worst of the housing crisis might be behind Pennsylvania, it left in its wake a landscape of more subtle, systemic vulnerabilities. The cost of living remains elevated, with housing prices rising faster than wages in many parts of the state. According to national data, the median house price has increased by over 40% since 2019. Yet for many working-class Pennsylvanians, incomes have risen only modestly, and in some households, especially among service and gig workers, they’ve stagnated or dropped.

Add to that the tightening of pandemic-era support programs, rental assistance, stimulus checks, and child tax credits, and what remains is a patchwork system offering little protection when the next unexpected bill arrives.

For homeowners like John and Shirley Thompson of Erie, all it took was a medical emergency. After John suffered a mild stroke in February, the couple found themselves behind on both utility bills and their mortgage. They’ve lived in their modest, vinyl-sided ranch home for 34 years.

“We’re not asking for a bailout,” John said. “We just want a little time to catch up.”

A pre-foreclosure notice arrived last week.

Final Thoughts

This September, pre-foreclosures in Pennsylvania edged up, but overall, the state continues on a decade-long path of decline. From September 2023 to September 2024, filings dropped by more than 68%, a sign that the housing market, and perhaps the families it supports, are beginning to stabilize.

Still, homeownership remains as fragile as ever for some. Inflation, stagnant wages, rising interest rates, and dwindling safety nets have sealed many Pennsylvania families into a cycle of precarity, where even small setbacks can mean losing so much.

The data may reflect a healthier system. But behind those figures are thousands of Pennsylvanians trying to hold on to their homes, their dignity, and future they were promised.