09/18/2026
The distressed-property cycle is no longer something to prepare for - it is already unfolding. Homeowners need qualified guidance early, while real estate professionals must be ready to navigate short sales, foreclosures, and REO transactions effectively.
40,277 FORECLOSURE FILINGS - REOs UP 42% YEAR OVER YEAR
The August foreclosure numbers are in, and the trend continues moving higher.
According to ATTOM:
40,277 properties had foreclosure filings - up 1% from July and 13% from last year.
25,894 properties started foreclosure - up 7% year over year.
5,794 properties completed foreclosure and became REO - up 22% in one month and 42% year over year.
That 42% increase in completed foreclosures is the number everyone in the distressed-property industry should be watching.
South Carolina, Nevada and Florida posted the nation’s three highest foreclosure rates. Florida also led the country with 3,189 new foreclosure starts, while Punta Gorda had the second-worst foreclosure rate among major metropolitan areas.
Texas recorded an extraordinary 1,835 completed foreclosures - nearly one-third of all REOs reported nationwide during August. (Texas has one of the nation’s fastest foreclosure timelines - so it always leads and sets the pace that the other markets then follow)
This is not another 2008-style collapse happening overnight. It is a slow-burning distressed-property cycle that continues building month after month.
Many homeowners will still have opportunities to avoid foreclosure through loan modifications, conventional sales, short sales and lender-initiated coordinated sales - but only if they receive qualified assistance early enough.
For agents and brokers, the message is clear: The business is changing!
The professionals who understand short sales, loss mitigation, foreclosure timelines, and REO will be the ones positioned to help these homeowners, and receive the business as the market continues changing.
THE DISTRESSED PROPERTY CYCLE ISN’T COMING...
IT IS ALREADY HERE!
Data source: ATTOM August 2026 U.S. Foreclosure Market Report