227,548 Properties Enter Foreclosure in the U.S. in the First Half of the Year
According to ATTOM, a total of 227,548 properties entered foreclosure in the U.S. in the first half of 2026, an increase of 21% compared to the same period last year and about 28% compared to two years ago.
The number of foreclosure starts reached 164,566, up 18% year-on-year; bank-owned properties (REO) totaled 27,983, up 33% year-on-year.
The average foreclosure cycle has shortened to 563 days, the shortest since 2013.
Florida has the highest foreclosure rate, with Idaho and Colorado leading in growth.
High interest rates and financial pressure on some homeowners have driven the increase in activity, but it remains far below the peak after the financial crisis.
Funds are shifting from housing ownership to potential disposals and investment opportunities, with event-driven real estate pressures rising, benefiting buyers and service providers of foreclosure assets, while highly leveraged homeowners are under pressure.
Source: Public Information
ABAB AI Insight
ATTOM has been tracking the U.S. foreclosure market for a long time. After a significant decline in activity during the pandemic, it has been steadily recovering. This mid-term report shows an acceleration in the normalization process, continuing the trend of gradually revealing pressures in a high-interest-rate environment.
The simultaneous increase in foreclosure starts and completions, along with the shortening of cycles, is motivated by lending institutions accelerating disposals to reduce holding costs, strategically shifting from deferment tolerance to routine execution.
Similar to the normalization path of foreclosures in the late 2010s, the current phase is a return from historical lows to long-term average levels.
Essentially, this is a market clearing after regulatory changes. The accumulation of interest rate and income pressures is releasing supply through foreclosures, with mechanisms in place to shorten timelines and accelerate asset reallocation.
ABAB News · Law of Cognition
The rise in foreclosures is a lagging manifestation of interest rate pressures.
Shortening cycles release supply earlier than the increase in numbers.
During the normalization process, some will always feel financial pressure first.