A total of 227,548 residential properties carried foreclosure filings in the first half of this year, up 21% year-over-year.
According to data from ATTOM, among states with at least 500 foreclosure filings in the first half of 2026, the largest year-over-year increases in foreclosure activity were recorded in Idaho (up 59%), Colorado (up 57%), Georgia (up 52%), North Carolina (up 47%), and Mississippi (up 45%).
Nationwide, 0.16% of all housing units (one in every 632) had a foreclosure filing during the year’s first six months. The states with the worst foreclosure rates in the first half of 2026 were Florida (0.27% of housing units with a foreclosure filing); South Carolina (0.26%); Indiana (0.25%); Delaware (0.25%); and Illinois (0.23%).
“Foreclosure activity continued to increase in the first half of 2026, but the broader picture remains one of a market that is gradually returning to more typical patterns,” said Rob Barber, CEO at ATTOM. “The combination of rising foreclosure starts, increased foreclosure completions, and shorter timelines points to a continued normalization of the foreclosure process, although the increases also suggest that some homeowners may be facing greater financial strain than they were a year ago.”
ATTOM also reported there were 115,714 properties with a foreclosure filing during the second quarter, down 3% from the previous quarter but up 15% from one year ago. During June, one in every 3,656 properties had a foreclosure filing.
Separately, Realtor.com issued a data report that found nearly 30,000 short sales took place in 2025, accounting for roughly 0.6% of all arms-length home sales and 28% of distressed sales. Short-sale transactions rose 4% from 2023 to 2024, nearly 10% from 2024 to 2025, and about 16% year over year in the first quarter of this year.
While short sales are gaining in volume, they remain far less common than foreclosures, trailing them by more than two to one.
“Even in a strong economy with home prices close to record highs, a small segment of households find themselves facing tough circumstances,” said Danielle Hale, chief economist at Realtor.com. “The good news for struggling homeowners is that they have more options now than in previous decades. A short sale can be complicated and requires borrowers to act before the bank forces their hand; however, it benefits them by shortening the waiting period before they can qualify for a future mortgage. Foreclosures are the more common outcome, but borrowers facing difficulty should consider all of their options. Engaging with a Realtor agent who specializes in these transactions can be a smart move.”
Foreclosures ,,, Probably because many of them did not have the money to sustain the mortgage payment but they still got the mortgage because of FHA etc. How many in foreclosures were purchased in the last 3 years?
Short sales should be not allowed as in a lot of them were used to get Re. listings .
short sales are the best way for a home owner to do the right thing when they can no longer afford mortgage. It has nothing to do with the type of loan they received since we no longer have the type of mortgages of the past. Circumstances change and mortgage rates and housing prices have gone up to unaffordable highs.
Losing your home is tramatic no matter how it happens.
Thank you, FHA, FNMA,FREDDIE, toxic and corrupt. Oh, I know… blame the appraisers.
Appraisal – the profession where if you don’t make the numbers that make the deals happen, you don’t get any more work. And if you roll over and let deals happen that shouldn’t, you get sued when the houses foreclose. What a great vocation, no wonder there are so many crooks in the business.