Foreclosures Continue Gradual Climb Into 2026 

ATTOM has published its U.S. Foreclosure Market Report for January 2026, revealing that there were 40,534 properties in the U.S. with foreclosure filings—such as default notices, scheduled auctions, or bank repossessions. This figure represents a decrease of 10% from the previous month and an increase of 32% compared to the same month last year. 

“Foreclosure activity in January rose year-over-year for the eleventh straight month, continuing a trend that has now carried into early 2026,” said Rob Barber, CEO at ATTOM. “Foreclosure starts were up 26% from a year ago, while completed foreclosures increased nearly 59%. Although foreclosure activity has been rising steadily, overall levels remain well below historic peaks, suggesting that most homeowners are still on stable footing even as higher housing costs and broader economic pressures create stress in certain pockets of the market.” 

In January 2026, there was a foreclosure filing on one out of every 3,547 housing units nationwide. The states exhibiting the highest foreclosure rates included Delaware (one foreclosure filing for every 1,612 housing units), Nevada (one for every 1,983 housing units), Florida (one for every 2,067 housing units), South Carolina (one for every 2,351 housing units), and Maryland (one for every 2,430 housing units). 

Among metro areas with populations of 200,000 or more, Trenton, NJ, recorded the worst foreclosure rate in January 2026, with one filing for every 1,087 housing units. 

Following Trenton were Punta Gorda, FL (one in every 1,187 housing units); Fayetteville, NC (one in every 1,257); Lakeland, FL (one in every 1,262); and Vallejo, CA (one in every 1,287). 

Florida, Texas, and California Led the Country in Foreclosure Starts

In January 2026, lenders initiated foreclosure proceedings on some 26,369 properties across the U.S., representing a decrease of 7% from the previous month but an increase of 26% compared to the same month last year. 

In January 2026, the states with the highest number of foreclosure starts were:  

1. Florida (3,523) 

2. Texas (3,116) 

3. California (2,790) 

4. Georgia (1,351) 

5. New York (1,304) 

Those major metropolitan areas with a population greater than 200,000 that had the greatest number of foreclosure starts in January 2026 included:  

1. New York (1,295 foreclosure starts) 

2. Chicago (1,053 foreclosure starts) 

3. Houston (1,040 foreclosure starts) 

4. Miami (851 foreclosure starts) 

5. Los Angeles (781 foreclosure starts) 
    

In January 2026, lenders completed foreclosures (REOs) on 4,714 U.S. properties, marking a 21% decrease from the previous month and a 59% increase compared to the same month last year. 

States that had the greatest number of REOs in January 2026, included:  

1. Texas (573 REOs) 

2. California (415 REOs) 

3. Florida (327 REOs) 

4. Pennsylvania (311 REOs) 

5. Illinois (267 REOs) 

Those major metropolitan statistical areas (MSAs) with a population greater than 200,000 that saw the greatest number of REOs in January 2026 included:  

1. Chicago (248 REOs) 

2. Philadelphia (165 REOs) 

3. Houston (152 REOs) 

4. Dallas (122 REOs) 

5. New York (114 REOs) 

The U.S. Foreclosure Market Report from ATTOM for January 2026 indicates that foreclosure activity has increased on a year-over-year basis for the eleventh consecutive month, with 40,534 properties in the U.S. reporting a foreclosure filing. As the market progresses into 2026, foreclosure starts rose by 26% compared to the previous year, and completed foreclosures surged by nearly 59%, reflecting a gradual normalization trend.