Foreclosure activity is rising again in 2026, but the data does not yet point to a nationwide foreclosure crisis.
ATTOM’s May 2026 U.S. Foreclosure Market Report showed 40,355 U.S. properties with foreclosure filings, including default notices, scheduled auctions or bank repossessions. That was down 5% from April but up 14% from May 2025. ATTOM also said foreclosure starts rose 13% year over year and completed foreclosures, or REOs, rose 6% annually.
The clearest message: distress is increasing on an annual basis, but volumes remain well below historic norms.
Key takeaways
- ATTOM reported 40,355 U.S. properties with foreclosure filings in May 2026.
- Filings were down 5% month over month but up 14% year over year.
- Foreclosure starts rose 13% year over year to 27,304 properties.
- Completed foreclosures rose 6% year over year to 4,092 REOs.
- Florida, South Carolina and Maryland posted the highest state foreclosure rates in May.
- Q1 2026 foreclosure filings were up 26% from a year earlier.
- Rising foreclosure activity matters, but it remains far below past crisis levels.
What counts as a foreclosure filing?
Foreclosure data can include several stages.
ATTOM’s report incorporates documents in three phases: default notices, auction notices and real estate owned properties, or REOs. A default filing does not mean the owner has already lost the home. It means the property has entered some stage of the foreclosure process.
That distinction matters. A foreclosure start, auction notice and completed bank repossession all represent different levels of distress.
Where foreclosure rates are highest
In May 2026, ATTOM reported that one in every 3,562 U.S. housing units had a foreclosure filing. Florida had the highest state foreclosure rate, with one in every 2,110 housing units receiving a filing. South Carolina ranked second, followed by Maryland, Nevada and Indiana.
Among large metro areas, ATTOM reported the highest May foreclosure rates in Cleveland, Baltimore, Tampa, Riverside and Orlando.
These rankings do not mean every neighborhood in those states or metros is distressed. Foreclosure risk can vary by price tier, local economy, borrower equity, property type and loan vintage.
Foreclosure starts are another warning sign
Foreclosure starts show where lenders are initiating the process.
ATTOM reported that lenders started foreclosure on 27,304 U.S. properties in May 2026, down 4% from April but up 13% from a year earlier. Texas led the country in foreclosure starts, followed by Florida, California, Georgia and Illinois.
Starts are important because they can become future auctions or REOs if borrowers cannot resolve the delinquency.
Q1 showed broader annual increases
May was not an isolated signal.
ATTOM’s Q1 2026 report showed 118,727 U.S. properties with foreclosure filings during the quarter, up 6% from Q4 2025 and up 26% from Q1 2025. Foreclosure starts rose 20% year over year, and bank repossessions rose 45% year over year.
That pattern suggests foreclosure activity is normalizing upward from unusually low levels, rather than exploding suddenly.
Why foreclosure activity is rising
Foreclosures can rise when household budgets get squeezed.
Potential pressure points include:
- higher mortgage payments for recent buyers,
- rising property taxes,
- higher homeowners insurance premiums,
- HOA or condo fee increases,
- job loss or income disruption,
- consumer debt,
- and fewer pandemic-era relief options.
At the same time, many homeowners still have meaningful equity, which can help them sell before foreclosure if they act early.
What this means for homeowners
A foreclosure filing should not be ignored.
The CFPB advises borrowers who cannot pay their mortgage, or are worried about missing a payment, to call the mortgage servicer right away and contact a HUD-approved housing counseling agency for free expert help.
Homeowners may have options, including repayment plans, forbearance, loan modification, refinance, sale, short sale or deed-in-lieu, depending on circumstances and loan rules.
What this means for buyers and investors
Foreclosure activity can create opportunities for investors and buyers, but distressed properties carry risk.
Foreclosure timelines, title issues, property condition, occupant rights and repair costs can vary significantly. A low price does not automatically mean a good deal.
Investors should understand local process, property condition and legal risks before pursuing distressed property.
FAQ
Are foreclosure rates rising in 2026?
Yes. ATTOM reported May 2026 foreclosure filings were up 14% year over year, though down 5% from April.
Is the U.S. in a foreclosure crisis?
The latest ATTOM data shows rising annual activity, but ATTOM also said overall foreclosure activity remains well below pre-pandemic levels.
Which states had the highest foreclosure rates in May 2026?
ATTOM reported the highest state foreclosure rates in Florida, South Carolina, Maryland, Nevada and Indiana.
What is a foreclosure start?
A foreclosure start is when a lender begins the foreclosure process on a property.
What should homeowners do if they are behind on payments?
The CFPB advises contacting the mortgage servicer immediately and reaching out to a HUD-approved housing counseling agency.
Sources with clickable URLs
- [ATTOM — May 2026 U.S. Foreclosure Market Report](https://www.attomdata.com/news/market-trends/foreclosures/may-2026-foreclosure-market-report/)
- [ATTOM — Q1 2026 U.S. Foreclosure Market Report](https://www.attomdata.com/news/market-trends/foreclosures/q1-and-march-2026-foreclosure-market-report/)
- [CFPB — If I Can’t Pay My Mortgage Loan, What Are My Options?](https://www.consumerfinance.gov/ask-cfpb/if-i-cant-pay-my-mortgage-loan-what-are-my-options-en-268/)
- [HUD — Avoiding Foreclosure](https://www.hud.gov/helping-americans/avoiding-foreclosure)
—
