US Foreclosure Filings Rose 21% in Early 2026 and the Timeline to Lose Your Home Just Hit Its Shortest Point Since 2013
U.S. foreclosure filings rose 21% year over year in the first half of 2026, reaching 227,548 properties, according to ATTOM’s Mid-Year 2026 U.S. Foreclosure Market Report released Thursday, with the property data firm saying the increase suggests some homeowners may be facing greater financial strain than they were a year ago.
A foreclosure is the legal process that begins when a homeowner falls behind on mortgage payments. ATTOM’s foreclosure filings include default notices, scheduled foreclosure auctions and bank repossessions.
“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,” ATTOM CEO Rob Barber said. “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.”
Florida Tops List
Among states with at least 500 foreclosure filings, Idaho recorded the largest year-over-year increase at 59%, followed by Colorado at 57%, Georgia at 52%, North Carolina at 47% and Mississippi at 45%.
Florida posted the nation’s highest foreclosure rate during the first half of the year, with one in every 373 housing units recording a foreclosure filing. South Carolina ranked second, followed by Indiana, Delaware and Illinois.
The report also showed foreclosure starts increased 18% from a year earlier to 164,566 properties, while lenders completed foreclosures on 27,983 properties, up 33% year over year. Meanwhile, the average foreclosure timeline fell to 563 days in the second quarter, the shortest since 2013.
Borrowing Costs Bite
The latest report comes as elevated borrowing costs continue to pressure the housing market. Recent Mortgage Bankers Association data showed the average contract rate on a 30-year fixed mortgage climbed to 6.65%, the highest level since August 2025, while applications to purchase homes declined, reflecting continued affordability challenges.
Broader household finances have also shown signs of strain. An Urban Institute study released this week found more Americans are relying on credit cards and emergency savings to pay for groceries, with many struggling to keep up with debt payments as higher living costs continue to squeeze household budgets.
Separately, Realtor.com reported that short sales, in which homeowners sell their homes for less than the outstanding mortgage balance to avoid foreclosure, rose 16% year over year in the first quarter of 2026, another indication that financial stress is affecting some homeowners.
The affordability squeeze has also reshaped who can buy a home. The median age of first-time homebuyers has climbed to a record 40, a shift Sen. Bernie Sanders (I-Vt.) highlighted earlier this month as he argued that decades of stagnant wage growth and rising housing costs have delayed homeownership.
Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.
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