US Foreclosures Jump 21% in H1 2026 Amid Mortgage Stress

U.S. foreclosure activity increased by 21% in the first half of 2026, with 227,548 properties receiving foreclosure filings. This figure represents a 28% rise compared to the same period in 2025 and indicates a return to more typical market patterns after several years of low activity, according to ATTOM's midyear foreclosure report. The increase is attributed to a combination of financial pressures, including higher taxes, insurance, and household costs, which are making it difficult for some borrowers to manage their mortgage payments once they fall behind.

Foreclosure starts, the initial stage of the process, were the primary driver of this increase. Lenders initiated foreclosure proceedings on 164,566 properties between January and June 2026, an 18% rise from the first half of 2025 and a substantial 66% increase from the first half of 2020. This suggests a growing number of loans are entering the foreclosure pipeline.

Completed foreclosures, also known as real estate-owned (REO) properties, are also on the rise. In the first six months of 2026, lenders repossessed 27,983 properties, marking a 33% increase from the previous year. While still 26% below the levels seen in the first half of 2020, this upward trend indicates that more foreclosures are reaching their final stage.

Overall, foreclosure filings affected 0.16% of U.S. housing units in the first half of 2026, equating to one in every 632 homes. Mirza Hodzic, founder and managing director of BlackWolf Advisory Group, noted that the rise in both foreclosure starts and REO properties will continue to put pressure on mortgage servicers in the latter half of the year, particularly in areas like loss mitigation, attorney oversight, property preservation, and REO management.