DFW Foreclosure Calls Have Tripled in 12 Months. Here's What That Means.
Foreclosure calls to our office have tripled in the past 12 months.
Not doubled. Not increased significantly. Tripled.
This is our own data — every seller inquiry we receive, tracked by situation type. And foreclosure is now the fastest-rising category by a margin that would have surprised me two years ago.
By Zareena Samidon | Samidon Realty Group | Colleyville, TX
What Our Inquiry Data Actually Shows
We buy 5–7 homes per year in Tarrant and Dallas County. Every inquiry is categorized by seller situation: pre-foreclosure, divorce, probate, vacant property, tired landlord, or general distress.
Twelve months ago, foreclosure and pre-foreclosure calls were the second or third most common inquiry type. Today they are the clear leader, at approximately 3× the volume we tracked 12 months prior.
This is not a national survey. It is a direct first-hand window into what DFW homeowners in distress are experiencing. And it is consistent with what national data is showing.
National foreclosure trend — ATTOM data:
| Period | National Foreclosure Filings | YoY Change |
|---|---|---|
| Full year 2023 | 357,062 properties | Baseline |
| Full year 2024 | 322,000 (est.) | −10% |
| Full year 2025 | 367,460 properties | +14% |
| January 2026 | 40,534 for the month | +26% starts YoY |
| February 2026 | Monthly report | +14% starts YoY |
| April 2026 | 42,430 for the month | +12% above prior year |
Source: ATTOM Year-End 2025 U.S. Foreclosure Market Report (January 15, 2026); ATTOM January 2026 and April 2026 Monthly Reports
ATTOM reported that foreclosure activity increased for eleven consecutive months through early 2026, with completed foreclosures (REOs — bank repossessions) rising especially sharply. In January 2026, Texas led all U.S. states in REOs with 573 completed foreclosures — and Dallas ranked fourth among major metro areas nationally with 122 REOs that month. [Source: ATTOM January 2026 U.S. Foreclosure Market Report, February 11, 2026]
Our 3× DFW observation is consistent with a national trend that accelerated through 2025 and into 2026. The difference is that we are seeing it directly, in the calls we receive, from the homeowners who are facing it.
Why This Is Happening Now
Three forces are converging that did not exist simultaneously before:
Mortgage rates that have remained elevated despite modest Fed cuts. The average 30-year fixed mortgage rate stands at 6.56% as of late May 2026, near its highest point since August 2025. [Source: Bankrate.com, May 29, 2026] Households who bought or refinanced at 3–3.5% in 2020–2021 are fine. Households who bought at current rates — or who have adjustable-rate products that have reset — are carrying payments that represent a fundamentally different share of their income. For many DFW homeowners, the monthly payment on the same house is 40–50% higher than it would have been four years ago.
A locked housing market with no easy exit. Selling and downsizing requires a buyer who can absorb today's rates. In DFW's 2026 market, the median home price was approximately $385,000 in February 2026, down 2.2% year-over-year. [Source: MetroTex Association of Realtors, February 2026 report via CultureMap Dallas, April 2026] Homes are taking longer to sell: the median days on market for 80% of DFW homes is now 50 days, and 23% of homes are taking 90+ days to close — the highest share since 2015. [Source: The Real Deal Texas, MLS data analysis by Compass agent Matt Haistings, April 2026] The "sell and move on" path that used to exist for financially stressed homeowners has become meaningfully harder.
Accumulated household financial pressure. Homeowners insurance rose 12% in 2025 to an average of $2,948 annually, while average property tax burdens increased 3% to $4,427. [Source: Fox Business, citing ATTOM data, May 2026] DFW's specific combination of 2.0–2.5% effective property tax rates — among the highest in the country — compounds this pressure.
What Sellers in Pre-Foreclosure Are Getting Wrong
The most common mistake is waiting.
Sellers who call us at 30 or 60 days behind — before a Notice of Default has been filed — have the widest range of options: loan modification, reinstatement, forbearance, traditional sale, or cash sale. Each option requires time to execute.
The sellers who call us when the bank has already scheduled the auction have one option: close before the first Tuesday.
The second mistake is the listing price assumption.
Sellers in financial distress often arrive having talked to a real estate agent. That agent's CMA shows a gross sale price — a number that does not include: the 5–6% total commission (which has remained unchanged despite the 2024 NAR settlement — buyer agent commissions actually averaged 2.43% in 2025, up slightly from pre-settlement levels [Source: Redfin analysis via Fox Homes Team, August 2025]), the repairs the retail market will require, 90–120 days of carrying costs, and buyer concessions after inspection.
We run a full net proceeds comparison for every seller we speak with. The gap between the agent's gross price and the actual net consistently surprises people.
The Repair Problem
On the majority of DFW homes we acquire, we discover $25,000–$50,000 in deferred maintenance after close. The three most common discoveries:
HVAC systems. Replacement costs $6,000–$12,000. DFW summers are brutal and aging systems are endemic to the region's housing stock.
Electrical components and code violations. Ranging from nuisance items to genuine safety concerns — $2,000–$15,000+ to remediate.
Foundation issues. Tarrant and Dallas County sit on expansive Blackland Prairie clay that shrinks and swells with moisture changes. The median DFW inherited property — often built between 1950 and 1990 — faces "foundation instability caused by expansive clay soils," according to DFW estate specialists. [Source: Sage Senior Support DFW Probate Resource, December 2025] Repair costs: $8,000–$35,000 depending on severity.
The Timeline Reality
Texas is a non-judicial foreclosure state. From first missed payment to courthouse auction: as few as 120–165 days. From Notice of Sale posting to auction: 21 days.
Our cash close timeline: 20–30 days average.
| Seller Calls | Options Available |
|---|---|
| 30–60 days behind | Modification, reinstatement, traditional sale, cash sale |
| 90+ days behind, pre-NOD | Traditional sale (if time allows), cash sale |
| Post-NOD, pre-auction | Cash sale — timeline is the binding constraint |
| Within 30 days of auction | Emergency cash close only — every day matters |
What to Do If You're Behind Right Now
Call your servicer first. CFPB rules require servicers to review loss mitigation applications before completing foreclosure — submitting an application pauses the process during review.
Then get a cash offer. Free to obtain, no obligation, tells you exactly what your home is worth today. You can compare it against a full net proceeds estimate from a traditional listing and make an informed decision.
The sellers who have the best outcomes are the ones who started that process before the urgency became a crisis.
📞 (817) 880-0904 | Get Your Cash Offer
Frequently Asked Questions
Why are foreclosure rates rising in DFW specifically?
DFW's combination of high effective property tax rates (2.0–2.5%), mortgage payments sized during an era of elevated prices, and a locked housing market that makes downsizing difficult has created concentrated household financial pressure. Texas led all states in completed foreclosures (bank repossessions) in January 2026 with 573 REOs, per ATTOM data. This is not uniquely a Texas problem — ATTOM reports eleven consecutive months of year-over-year increases nationally through early 2026 — but DFW has several compounding factors.
Does a cash sale during pre-foreclosure hurt your credit?
A cash sale that closes before foreclosure is completed does not add a foreclosure entry to your credit report. Late payments already reported remain — those cannot be removed. Preventing the completed foreclosure matters significantly for mortgage eligibility: a completed foreclosure creates a 7-year waiting period for conventional financing; a short sale or pre-foreclosure cash sale reduces that to 4 years (conventional) or 3 years (FHA).
How do you know foreclosure calls have tripled?
This is our internal inquiry tracking from our Colleyville office. We categorize every seller inquiry by situation type. The pre-foreclosure category grew from roughly proportional to other types to the clear plurality over the past 12 months — at approximately 3× the volume we tracked 12 months prior. This is consistent with ATTOM's national data showing foreclosure starts up 26% year-over-year in January 2026 and completions up 59%.
Related: Texas Foreclosure Timeline · 3 Months Behind: Texas Options · Foreclosure vs. Short Sale vs. Cash: Credit Impact
References:
- ATTOM Year-End 2025 U.S. Foreclosure Market Report. January 15, 2026. attomdata.com
- ATTOM January 2026 U.S. Foreclosure Market Report. February 11, 2026. attomdata.com
- ATTOM April 2026 U.S. Foreclosure Rates by State. May 15, 2026. attomdata.com
- Bankrate.com — Current Mortgage Rates. May 29, 2026.
- MetroTex Association of Realtors — February 2026 Market Report (via CultureMap Dallas, April 2026)
- The Real Deal Texas — "Besides Luxury, Mispriced DFW Homes Are Lagging on the Market." April 24, 2026.
- Fox Business — "US Foreclosures Hit 6-Year High." May 2026. (citing ATTOM and homeowners insurance data)
- Redfin commission analysis via Fox Homes Team — "Buyer Agent Commissions 2026." August 2025.
- Sage Senior Support — "How to Sell Inherited House Without Probate in Texas." December 2025.