Weekly Real Estate News
Completed foreclosure auctions rose 25% from a year earlier in the third quarter of 2026, reaching their highest quarterly level since the first quarter of 2020, according to Auction.com’s latest Auction Market Dispatch.
The increase was particularly pronounced among mortgages insured by the Federal Housing Administration. Completed foreclosure auctions involving FHA loans climbed 73% year over year, reaching their highest level since the first quarter of 2019. FHA-insured loans represented 43% of completed foreclosure auction activity, the largest share since the first quarter of 2015.
Mortgages originated in 2022 or later accounted for 46% of third-quarter foreclosure auction activity. Completed auction volume involving those newer loans also increased 73% compared with a year earlier.
What the foreclosure auction figures show
The data point to a growing flow of distressed properties reaching auction, particularly among FHA borrowers and more recent mortgage vintages. But the figures describe activity on Auction.com’s marketplace; they do not mean the national foreclosure rate increased 25%.
Bank-owned, or real estate-owned (REO), auction volume increased 18% year over year. Auction.com’s scheduled auction pipeline also suggested additional supply ahead: scheduled foreclosure auction volume was running 11% above a year earlier for October, 31% for November and 15% for December.
Why mortgage professionals should pay attention
The concentration of foreclosure auction activity among FHA-insured and newer loans raises questions about the financial resilience of some recent homebuyers. Housing affordability pressures, financing costs and borrower circumstances warrant continued scrutiny, although auction counts alone cannot establish why individual homeowners defaulted.
The increase should also be interpreted against a longer-term baseline. Auction.com’s reporting indicates that overall completed foreclosure auction activity remains below its first-quarter 2020 level, despite reaching a post-pandemic high.
WRE previously covered an earlier rise in auction volume in April 2026. The third-quarter report adds new evidence of increased activity, particularly among FHA-insured and recent-vintage mortgages.
Source: Auction.com, third-quarter 2026 Auction Market Dispatch, released October 22, 2026. See also HousingWire’s October 23 report.
