Foreclosure Filings Down Month-Over-Month But Continue Rising Year-Over-Year

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A total of 40,355 residential properties had foreclosure filings— default notices, scheduled auctions or bank repossessions — during May, down 5% from April but up 14% from May 2025.

According to data from ATTOM, lenders initiated the foreclosure process on 27,304 residential properties last month, down 4% from the previous month but up 13% from one year earlier. Texas led the nation in foreclosure starts in May 2026 (3,590 foreclosure starts); followed by Florida (3,315 foreclosure starts); California (2,530 foreclosure starts); Georgia (1,161 foreclosure starts); and Illinois (1,150 foreclosure starts).

Lenders repossessed 4,092 residential properties through completed foreclosures (REOs) in May 2026, down 20% from the previous month but up 6% year-over-year.

“While foreclosure activity eased from April levels, the broader trend remains one of gradual year-over-year growth,” said Rob Barber, CEO at ATTOM. “Foreclosure starts and completed foreclosures both increased compared to last year, reflecting ongoing pressure on some homeowners as elevated mortgage rates, rising ownership costs, and affordability constraints persist. At the same time, foreclosure volumes remain well below historical norms, indicating that the housing market continues to show resilience despite these challenges.”