Texas had more foreclosure starts than any other state in May 2026, with 3,590 properties entering the foreclosure process — as national filings climbed 14 percent above the same month last year, according to ATTOM's May 2026 U.S. Foreclosure Market Report released June 25.
What Happened
Nationwide, 40,355 properties carried a foreclosure filing in May 2026 — down 5 percent from April but up 14 percent from May 2025, according to ATTOM. Foreclosure starts totaled 27,304 for the month, up 13 percent year over year.
Texas led all states in both foreclosure starts (3,590) and completed foreclosures, called REOs or bank repossessions (519). Within Texas, Houston posted 122 REOs and Dallas posted 88, making them among the most active foreclosure metros in the country.
Completed foreclosures nationally rose 6 percent year over year to 4,092 in May.
"While foreclosure activity eased from April levels, the broader trend remains one of gradual year-over-year growth." — Rob Barber, ATTOM CEO
The month-over-month dip reflects seasonal patterns more than a structural shift. Foreclosure starts on a year-over-year basis have climbed for multiple consecutive months.
Why It Matters
Texas is a non-judicial foreclosure state, meaning lenders do not need a court order to proceed. Once a Notice of Sale is posted, the Tarrant County or Dallas County courthouse auction happens on the first Tuesday of the following month — typically 21 days away. That compressed timeline is shorter than almost any other state.
The national data confirms what local practitioners observe: elevated mortgage rates, rising property taxes, and persistent affordability constraints are combining to push more homeowners toward distress. FHA delinquency rates nationally hit 11.52 percent in Q4 2025 — the highest level since 2021 — which suggests the pipeline of properties approaching foreclosure remains full.
| State Metric | May 2026 |
|---|---|
| Total U.S. foreclosure filings | 40,355 |
| Month-over-month change | −5% |
| Year-over-year change | +14% |
| Texas foreclosure starts | 3,590 (1st nationally) |
| Texas REOs (completed foreclosures) | 519 (highest) |
| Dallas REOs | 88 |
| Houston REOs | 122 |
What This Means for DFW Homeowners
For a homeowner in the Dallas-Fort Worth area who has received a Notice of Default or missed multiple payments, the May data reflects the competitive reality at the courthouse steps. With 88 REOs completed in Dallas alone in a single month, a significant number of Texas homeowners are losing their equity to foreclosure auction prices — where lenders bid the debt amount and third-party investors bid conservatively.
A home that would produce $30,000–$50,000 in equity through a pre-foreclosure cash sale frequently produces nothing at auction.
The window for a voluntary sale narrows sharply once a Notice of Sale is posted. A cash buyer can close in 5–10 business days in Tarrant and Dallas County. That window exists before auction; after auction, it does not.
Related: Texas Foreclosure Timeline → · Stop Foreclosure: DFW Guide → · Sell Fast or Catch Up on Payments? →