ATTOM released its 2026 Mid-Year Foreclosure Market Report on July 14, confirming a trend that monthly reports have signaled for quarters: foreclosure activity in the United States has been rising steadily on an annual basis throughout 2026, with the pace of bank repossessions accelerating sharply even as total filing volumes remain below historical crisis-era peaks.
What Happened
ATTOM's mid-year report aggregates foreclosure filings tracked through the first half of 2026. The quarterly and monthly data tell the story in detail:
In Q1 2026, 118,727 U.S. properties had a foreclosure filing — up 26% year over year and up 6% from Q4 2025. Foreclosure starts rose 20% annually. Bank repossessions (REOs) jumped 45% year over year in Q1, with lenders taking back 14,020 properties — homes where the foreclosure process completed and title returned to the bank.
In April 2026, there were 42,430 foreclosure filings nationally, down 8% from March but up 18% year over year. In May, 40,355 filings were recorded — down 5% month over month but up 14% from May 2025. The month-over-month dips reflect seasonal patterns; the year-over-year increases have held positive every month in 2026.
The states with the highest foreclosure rates through mid-year: Indiana, South Carolina, Florida, Delaware, and Illinois. Florida posted one foreclosure filing per 2,110 housing units in May; South Carolina, one per 2,287. In Georgia, foreclosure starts rose approximately 52% annually in the first half of 2026, according to regional data cited by the Savannah Business Journal.
Texas led the nation in foreclosure starts in May with 3,590 — ahead of Florida (3,315) and California (2,530).
"Foreclosure volumes remain well below historical norms, indicating that the housing market continues to show resilience despite these challenges." — Rob Barber, CEO, ATTOM
Why It Matters
ATTOM's mid-year data lands at a moment when two competing narratives about the housing market are both partially true. Home prices hit a nominal all-time record in June 2026. And yet the number of households entering the foreclosure process has risen every quarter for the past six quarters.
The resolution to this apparent contradiction is time lag. Foreclosure is a slow process. The delinquencies driving 2026 foreclosure starts began accumulating in 2024 and 2025 as Federal Reserve rate hikes compounded with rising property taxes, insurance premiums, and in some markets, declining home values. Households that took on maximum debt at peak affordability stress — particularly FHA borrowers and adjustable-rate mortgage holders — are the leading edge of the pipeline now flowing through foreclosure courts.
The 45% annual jump in completed bank repossessions in Q1 is the most significant figure. REOs represent the end of the foreclosure process — properties that did not sell at auction and reverted to the lender. A 45% annual increase means more properties are completing the full foreclosure cycle rather than being resolved earlier through short sale, loan modification, or equity sale.
This matters for the broader housing market because REO properties are typically sold by banks at below-market prices to clear their books — adding modestly distressed supply to markets already seeing inventory increases.
What This Means for Home Sellers
Distressed sellers facing foreclosure have more company — and shorter timelines. The 20%+ annual increase in foreclosure starts nationally means courts, lenders, and servicers are processing more volume. Homeowners who received a notice of default in early 2026 are reaching critical decision points now.
The REO surge is a warning for sellers who wait too long. A property that completes the foreclosure cycle — goes to auction and reverts to the bank — is sold by the bank, not the homeowner. The homeowner receives nothing from a bank REO sale above the outstanding loan balance, and typically receives nothing at all. The 45% jump in REOs means more homeowners in 2026 have waited past the point of recovery.
A cash sale before foreclosure completes preserves proceeds and credit. A home sold directly — even at a discount relative to list price — produces a defined check to the seller at closing. That outcome is categorically better than a completed foreclosure, which damages credit for seven years and eliminates any equity recovery. For homeowners currently in the delinquency pipeline, the ATTOM mid-year data reinforces the urgency of acting before the process advances.
The rising foreclosure rate signals that financed buyers are stressed. Every household entering foreclosure was a recent financed buyer. The same affordability pressures driving foreclosures are constraining new buyer formation. Sellers listing on the traditional market face a buyer pool where qualification is harder and fall-through risk is higher than in prior years.
The Bottom Line
ATTOM's first-half 2026 data shows foreclosure filings up 20%+ year over year, bank repossessions up 45% in Q1, and the annual trend holding positive every single month. The absolute numbers remain below 2008–2012 crisis peaks, but the direction is unmistakable. For homeowners facing delinquency, the window for a voluntary sale that preserves equity and credit is open now — and the mid-year data confirms it narrows every month the foreclosure process advances.
Related: U.S. Foreclosure Rate Hits Six-Year High → · Active Foreclosure Inventory at 6-Year High — 280,000 Loans → · How Does Selling a House for Cash Work? →
Sources: ATTOM, 2026 Mid-Year Foreclosure Market Report, July 14, 2026; ATTOM Q1 2026 Foreclosure Market Report, April 2026; ATTOM May 2026 Foreclosure Market Report, June 2026; Savannah Business Journal, "Foreclosure Annual Increases in First Half of 2026," July 2026.