Foreclosure Starts and REOs Trend Higher Year Over Year

According to ATTOM’s February 2026 U.S. Foreclosure Market Report, there were 38,840 U.S. homes with foreclosure filings—default notices, scheduled auctions, or bank repossessions—down 4% from the previous month and up 20% from the previous year.

“Foreclosure activity in February marked the 12th consecutive month of annual increases, extending a gradual upward trend that began early last year,” said Rob Barber, CEO at ATTOM. “While filings dipped slightly from January, both foreclosure starts and completed foreclosures remain higher than a year ago. Even with the continued rise, overall foreclosure levels remain well below historic norms.”

Key Findings from ATTOM’s February 2026 U.S. Foreclosure Market Report:

• For the 12th consecutive month of yearly growth, there were 38,840 U.S. properties with a foreclosure filing, down 4% from January but up 20% from a year ago.
• In early 2026, foreclosure activity continued to gradually normalize, as seen by the 14% yearly increase in foreclosure starts to 25,928 and the 35% annual increase in completed foreclosures to 4,077.

U.S. Foreclosure Filings Vary by Region

In February 2026, one in every 3,701 housing units nationwide had a foreclosure filing.

States with the worst foreclosure rates were:

1. Indiana (one in every 1,597 housing units with a foreclosure filing)
2. South Carolina (one in every 2,217 housing units)
3. Florida (one in every 2,277 housing units)
4. Delaware (one in every 2,443 housing units)
5. Illinois (one in every 2,590 housing units)

In February 2026, Lakeland, FL, had the highest foreclosure rate among metro areas with 200,000 or more residents, with one filing for every 1,075 housing units.

In February 2026, lenders began foreclosing on 25,928 U.S. properties, a decrease of 2% from the previous month but an increase of 14% from the previous year.

States that had the greatest number of foreclosure starts in January 2026 included:

1. Texas (3,390 foreclosure starts)
2. Florida (3,250 foreclosure starts)
3. California (2,440 foreclosure starts)
4. Georgia (1,331 foreclosure starts)
5. Indiana (1,197 foreclosure starts)

In February 2026, the following major metropolitan regions with a population of more than one million saw the biggest year-over-year declines in the number of foreclosure starts, in contrast to the national figures:

1. Tucson, AZ (decrease from 115 foreclosure starts in February 2025 to 24 in February 2026)
2. New Orleans (decrease from 146 to 55 foreclosure starts)
3. Buffalo, NY (decrease from 88 to 57 foreclosure starts)
4. Philadelphia (decrease from 743 to 482 foreclosure starts)
5. Minneapolis (decrease from 218 to 143 foreclosure starts)

Measuring Completed Foreclosure Activity

Lenders repossessed 4,077 U.S. houses through completed foreclosures (REOs) in February 2026, up 35% from the previous year and down 14% from the previous month.

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

1. Texas (453 REOs)
2. Michigan (432 REOs)
3. Florida (364 REOs)
4. California (335 REOs)
5. Pennsylvania (234 REOs)
   

In February 2026, the following large metropolitan statistical regions (MSAs) with a population of one million or more and at least twenty REOs witnessed the biggest annual reduction in the number of REOs, in contrast to the national trend:

1. St. Louis (decrease from 91 REO’s in February 2025 to 53 in February 2026)
2. Baltimore (decrease from 74 to 59 REO’s)
3. Chicago (decrease from 154 to 132 REO’s)
4. Riverside, CA (decrease from 58 to 53 REO’s)
5. New Orleans (decrease from 39 to 36 REO’s)

“Foreclosure activity continued its upward trend in the first half of 2025, with increases in both starts and completed foreclosures compared to last year,” Barber said. “While the overall numbers remain below pre-pandemic levels, the persistent rise suggests that some homeowners are still facing financial challenges amid today’s housing and economic landscape.”

To read the full report, click here.