Foreclosures Are Back, and Most Owners Have No Equity Left

Solving America's Problems · Oct 27, 2026 · 16m

People who bought in 2019 and 2020 are now in foreclosure with almost no equity, and many walk away with $5,000 to $20,000 at most. Ben Allgeyer explains the difference between a foreclosure and a short sale, including one he's negotiating with a $230,000 payoff on a house worth about $130,000. He says one lender's fees added about $60,000 in a year and a half on a $180,000 house. Jerremy Alexander Newsome and Dave Conley ask what stops a $200,000 starter home in Kansas City, and he points to land costs and county rules that counties have no reason to fix. His advice if you're facing…