07/20/2026
Foreclosures climb 21% in first half of 2026, pushed by higher stress in FHA, VA mortgages
ATTOM data points to normalizing levels of mortgage distress that will shape loss-mitigation, disposition and local market strategies in the second half of 2026
Article Summary
ATTOM’s Mid-Year 2026 U.S. Foreclosure Market Report shows 227,548 properties with foreclosure filings in the first six months of the year, up 21% from the same period in 2025 and 28% from 2024. Foreclosure starts climbed 18% and REO completions increased 33% as average timelines fell to 563 days, the lowest average timeline since 2013. Florida, South Carolina and Indiana posted the highest foreclosure rates among states. AI Summary
U.S. foreclosure activity rose again in the first half of 2026, with 227,548 properties receiving filings, up 21% from the same period in 2025, according to ATTOM’s midyear foreclosure report released Thursday.
The report — which tracks default notices, scheduled auctions and bank repossessions — shows total foreclosure filings are also 28% higher than in the first half of 2024. ATTOM CEO Rob Barber said in the company announcement that the market is “gradually returning to more typical patterns,” even as the data points to growing financial stress for some homeowners.
“The increase is being driven by a mix of financial pressure and continued normalization after several years of unusually low foreclosure activity. Higher taxes, insurance, and everyday household costs are making it harder for some borrowers to recover once they fall behind, even when the mortgage payment itself has not changed,” said Mirza Hodzic, founder and managing director of BlackWolf Advisory Group.
“The 18 percent rise in foreclosure starts tells us more loans are entering the pipeline, while the 33 percent increase in REO shows more are also reaching the end of the process. That combination will keep pressure on servicers through the second half, especially in loss mitigation, attorney oversight, property preservation, and REO management,” Hodzic added.