Foreclosure filings across the United States increased by 21 percent in the first half of 2026 compared to the same period in 2025, according to a report from real estate firm ATTOM. A total of 227,548 U.S. properties received foreclosure filings between January and June 2026, marking a 28 percent rise from two years prior. These filings include default notices, scheduled foreclosure auctions, and bank repossessions.
While current foreclosure levels remain substantially below those seen during the 2008 housing crisis, the data indicates increasing financial strain on some homeowners. "The combination of rising foreclosure starts, increased foreclosure completions, and shorter timelines points to a continued normalization of the foreclosure process, although the increases also suggest that some homeowners may be facing greater financial strain than they were a year ago," said Rob Barber, CEO of ATTOM.
Florida again emerged as the state with the highest foreclosure rate, with one in every 373 housing units receiving a filing. South Carolina followed, with one in every 381 homes affected, trailed by Indiana, Delaware, and Illinois. The report also highlighted metropolitan areas within Florida as the nation's foreclosure hotspots. Punta Gorda recorded the highest rate in the country, followed closely by Lakeland. Cape Coral, Jacksonville, and Ocala also ranked among the top ten hardest-hit metro areas.
Experts suggest that recent homebuyers who purchased when both home prices and mortgage rates were at their peak are at the greatest risk. "We are most concerned with the recent buyers that purchased homes with the elevated costs of both the price of homes and mortgage rates," said Ben Mizes, president of Clever Real Estate. He noted that while homeowners with historically low mortgage rates still have an advantage, this protection is being eroded by rising costs for homeowners insurance, property taxes, and general ownership expenses.
Texas recorded the largest number of foreclosure starts with 20,739 filings, narrowly ahead of Florida's 20,358. California, Georgia, and Illinois completed the top five states for foreclosure starts. Several other states saw sharp annual increases, with Idaho posting the largest jump at 59 percent, followed by Colorado (57 percent) and Georgia (52 percent). Mizes attributed these sharp increases to significant home price appreciation during the pandemic housing boom, leaving many buyers with limited financial flexibility.
Bank repossessions also saw a significant increase, with lenders completing foreclosure proceedings on 27,983 properties in the first half of 2026, a 33 percent rise from the previous year. Texas had the highest number of repossessions, followed by California, Florida, Pennsylvania, and Illinois.
Furthermore, the foreclosure process is moving faster than it has in over a decade. Homes foreclosed during the second quarter spent an average of 563 days in the process, the shortest timeline since 2013 and a 13 percent reduction from the previous year. Texas had the fastest foreclosure timeline at an average of 155 days.
Despite the rising numbers, experts emphasize that the current situation does not signal an imminent housing market collapse. Mizes stated, "Foreclosure rates are not the result of market fractures, but are increasing because buyers are burdened with the cumulative effect of rising costs. Many buyers now live on the financial edge." He added that homeowners today generally possess more equity than before the 2008 crisis, allowing many distressed owners to sell their properties before foreclosure proceedings are completed.