Fair housing center puts spotlight on increased Marion County foreclosures in new report

Amy Nelson

Marion County foreclosure filing numbers are starting to approach and surpass pre-pandemic levels, as rising home prices and interest rates, higher insurance premiums and a slew of other factors have put more and more homeowners under extreme pressure to keep up with payments.

The county’s upward foreclosure trend is featured in a new Fair Housing Center of Central Indiana report, “The State of Fair Housing in Indiana — Foreclosure Filings in Marion County,” which was released Dec. 18.

According to the FHCCI, new assessments resulting in higher property taxes, escalating homeowner insurance premiums, and rising costs for necessary home repairs are major barriers in someone’s ability to keep a home.

“With the insurance issue, the dramatic amount of (premium) jumps is new,” Amy Nelson, executive director of the Fair Housing Center of Central Indiana, told Indiana Lawyer.

The FHCCI purchased foreclosure data and analyzed public sources to present its findings.

Some of the report’s key findings included:

• In 2023, there were 1,534 foreclosure filings in Marion County, a 24% increase from 1,236 in 2022. However, from January to July 2024, there were already 958 filings. Indiana and some of its cities frequently rank among the highest for foreclosure filing rates. In November 2024, Indiana was the fourth highest state nationally with one filing for every 3,567 housing units during that month.
• The four Marion County neighborhoods with the highest foreclosure filing rates were Crown Hill (109.4 foreclosure filings per 1,000 owner-occupied households), Far Eastside (88.1), Meadows (77.9), and Martindale-Brightwood (72.5). All historically Black/African American neighborhoods.
• A recent report found that, in Indiana, the share of cost-burdened middle-class new homeowners increased 8.7 percentage points from 2017 (7.7%) to 2022 (16.5%) putting more families at risk of making ends meet.
• A recent report by Redfin found that the Indianapolis metro area saw the greatest percentage increase in property taxes out of the 50 biggest metropolitan areas, with Indianapolis homeowners paying a median of $205 a month—up nearly 67% from 2019.
• In Marion County, nearly $33 million in Indiana Homeowner Assistance Fund (IHAF) assistance was provided to 2,543 approved applications during the COVID-19 pandemic to keep people in their homes and to combat the risk of foreclosure. These funding programs have since closed resulting in few options for struggling homeowners.

Nelson said there are relatively few programs that can help people in Central Indiana dealing with foreclosures.

Data provided to FHCCI by ATTOM Data Solutions showed that Marion County had 1,609 foreclosure filings in 2018. That number dropped to 513 for 2021, but then accelerated upwards in 2022 and 2023.

“Although there may be some end-of-year seasonable slowing of filings, it is unlikely that 2024’s filing rate will decrease to pre-pandemic numbers,” the report stated.

The report noted that foreclosure filings are also a statewide concern.

In February 2024, an ATTOM analysis found that, nationally, one in every 4,236 housing units had a foreclosure filing during January 2024. The states with the highest foreclosure rates were Delaware (one in every 2,269 housing units with a foreclosure filing); Nevada (one in every 2,272 housing units);  and Indiana (one in every 2,499 housing units).

By July 2024, Indiana’s filings dipped slightly but the state was still ranked in the top 10 of states for foreclosure filings and had tallied 4,778 filings January-June 2024. By the end of September 2024, Indiana had a rate of one foreclosure for every 1,154 housing units, the 9th highest quarter for a state.

Nelson acknowledged the numbers are nowhere near those of the foreclosure crisis in the late 2000s.

The report pointed out that at the height of the foreclosure crisis, Indianapolis was averaging 1,000 foreclosure filings a month.

“We wanted to raise awareness that these numbers are picking up,” Nelson said.

The report also looked at causes of foreclosures and stated that with the rapid increase in housing prices since the start of the pandemic, some homebuyers may have over-extended their budgets to try to buy a home.

“They may have taken out a loan with a higher interest rate, hoping to refinance later when the rates dropped, but ended up stuck with their high rate. They may have had an affordable monthly payment at the start, but unexpected increases in property taxes and homeowners insurance have created a new financial struggle,” according to the report.