The State of Foreclosures and Short Sales in Pennsylvania — Spring 2025

When it comes to distressed property trends in Pennsylvania, the spring 2025 data paints a story of gradual but steady change. After several years of relatively low foreclosure activity, filings have been creeping upward across much of the state — and that movement is starting to ripple into the short‑sale market.

The Numbers Behind the Headlines

Let’s start with the hard facts:

- **April 2025:** Pennsylvania saw one foreclosure for every 4,304 housing units, according to Safeguard Properties.

- **May 2025:** That figure tightened to one in every 4,093 homes, or about 1,412 filings statewide out of 5.78 million units (*ATTOM Data Solutions*).

- **Philadelphia Metro:** During Q1 2025, there were 1,985 foreclosure starts, marking one of the highest quarterly totals since 2022.

While these numbers don’t represent a full‑blown crisis, they do confirm a slow normalization of foreclosure activity following years of artificially low delinquency rates during and immediately after the pandemic.

Regional Hot Spots

Most new filings continue to concentrate around **Philadelphia**, **Allegheny County (Pittsburgh)**, and pockets of **Lehigh Valley**. Rising insurance premiums, higher interest rates, and the expiration of COVID‑era forbearance plans have all contributed to renewed distress in these markets.

Rural and smaller‑metro counties — such as **Luzerne, Berks, and Erie** — have seen smaller but notable upticks as well, suggesting that economic strain is broadening beyond the major metros.

What It Means for Homeowners

For homeowners facing mortgage delinquency or looming foreclosure notices, **time is now the most valuable resource**. The earlier a homeowner acts, the more options remain available — including a short sale, which allows the property to be sold for less than the mortgage balance **before** foreclosure completes.

Unlike foreclosure, a short sale can:

- Limit long‑term credit damage.

- Prevent deficiency judgments in many cases.

- Offer relocation assistance at closing (sometimes thousands of dollars).

If handled correctly, a short sale can bring real relief to a homeowner while still allowing the lender to avoid a lengthy, costly foreclosure process.

Learn more about how we help homeowners complete short sales and move with cash in hand.

What It Means for Real Estate Agents and Title Companies

Agents and title teams are often the first professionals to hear from a distressed homeowner — but these files can quickly stall without specialized guidance. Lenders’ approval processes remain unpredictable in 2025, and missing one document or deadline can mean weeks of lost progress.

That’s where experienced negotiators come in. At **Crisp Short Sales**, we focus exclusively on short‑sale processing — helping real estate agents close short sales faster and with fewer delays. Our team handles lender communication, document collection, and closing coordination from start to finish.

For title companies, partnering early ensures clear title, faster HUD approvals, and consistent communication throughout the transaction.

Looking Ahead

If current trends continue, Pennsylvania’s foreclosure rate could rise modestly through the second half of 2025 — especially in metro areas where adjustable‑rate mortgages are resetting. This uptick will likely drive more homeowners to consider pre‑foreclosure alternatives like short sales.

That means opportunity for proactive agents and title partners who understand the process, build trust with distressed sellers, and collaborate with experienced short‑sale processors.

For homeowners and professionals alike, early action remains the key to smoother outcomes — and that’s exactly what we’re here to facilitate.

Ready to explore your options? Start a short sale today and we’ll walk you through the next steps.