Foreclosures Jump 21% in First Half of the Year, and Florida Leads the Nation

Foreclosures continued to climb in the first half of the year, approaching levels that haven't been seen since 2019, and Florida is leading the nation.

In the first six months of 2026, there were more than 227,000 U.S. properties with foreclosure filings, up 21% from the same period last year, according to real estate data and analytics provider ATTOM.

Nationally, that equates to foreclosures on just 0.16% of all homes. Foreclosure activity remains relatively low by historical measures—certainly, far below the levels seen following the 2008 financial crisis, when the number of foreclosures was five to seven times higher than today.

But since foreclosures dropped close to zero in 2021, when various COVID-19 pandemic relief programs protected homeowners in default, rates have been steadily rising.

“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,” says ATTOM CEO Rob Barber.

In addition to becoming more common, foreclosures are also moving along faster. The average foreclosed property had been in the process for 563 days in the first half of 2026, down 13% from a year ago, and the lowest level since 2013.

“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," says Barber.

Worst foreclosure states

Between January and June, Florida distinguished itself as the state with the worst foreclosure rate in the U.S., with 0.27% of housing units there facing repossession by a lender.

South Carolina was a close second, at 0.26%, followed by Indiana and Delaware, at 0.25%. Illinois rounded out the top five, with 0.23%.

Among states with at least 500 foreclosure filings in the first half of the year, Idaho experienced the steepest year-over-year increase in foreclosure activity (up 59%). It was followed by Colorado (up 57%), Georgia (up 52%), North Carolina (up 47%), and Mississippi (up 45%).

At the metro level, Punta Gorda, FL, had the highest foreclosure rate, with 0.50% of housing units there in the foreclosure process.

It was followed by Lakeland, FL (0.48%), Columbia, SC (0.43%), Macon, GA (0.36%), and Fayetteville, NC (0.36%).

Other major metro areas with foreclosure rates ranking among the 10 worst in the first half of 2026 were Cape Coral, FL (0.35%), Cleveland (0.33%), Jacksonville, FL (0.31%), Ocala, FL (0.31%), and Jacksonville, NC (0.31%).

Recently, a separate analysis from Realtor.com® examined homes at the end of the foreclosure process, when banks list them for sale as Real Estate Owned (REO) properties.

At the national level, REOs accounted for 1.3% of all active listings in April 2026. For buyers and investors, these foreclosures present a steep discount opportunity: The median REO home was sold for 27.2% less than its estimated value.

However, these properties come with significant hurdles.

Despite receiving 26.5% more page views on Realtor.com than typical listings, REO properties linger an average of 11 days longer on the market. This slower pace is attributed to properties being sold as is, receiving less marketing effort, and navigating local red tape.

Lake Charles, LA, a metro that is home to roughly 240,000 people, located 200 miles west of New Orleans, leads the nation with foreclosures making up over 10% of its market.