📊 What the Latest Zombie Foreclosure Data REALLY Means for Agents in 2026

📊 Top 10 States with the Highest Zombie Foreclosure Rates — Q1 2026 (ATTOM)

While zombie foreclosures remain a small share of the overall foreclosure market (about 3.27% nationwide in Q1 2026), some states have significantly higher rates than others — meaning more vacant homes lingering in the foreclosure process that could impact local markets. This data comes from ATTOM’s First Quarter 2026 Vacant Property and Zombie Foreclosure Report via RealtyTrac.

🧠 What “Zombie Foreclosure” Means
A zombie foreclosure refers to a home where the owner has abandoned the property before the foreclosure process is completed. These homes often sit vacant during pre-foreclosure, which can drag down neighborhood values and create opportunities — or risks — for agents and investors.

Here are the Top 10 states with the highest shares of zombie foreclosures in Q1 2026:

1-South Dakota — 17.9%
Out of all homes in foreclosure, nearly 18 out of every 100 were vacant pre-foreclosure.
2-Kansas — 10.6%
A strong second, with more than one in ten foreclosures classified as zombies.
3-Iowa — 7.0%
A notable jump down from the top two, but still well above the national average.
4-Missouri — 6.9%
Nearly seven out of every 100 foreclosure properties were vacant.
5-Oregon — 6.7%
Another state above the 6% mark.
6-New Mexico — 6.5%
Consistent with its regional peers.
7-Indiana — 6.3%
Higher vacant rates than much of the rest of the country.
8-Ohio — 6.2%
Ohio shows a similar trend, with more than six out of every 100 foreclosures vacant.
9-Oklahoma — 6.0%
This state rounds out the northern half of the list.
10-Maryland — 5.8%
Completing the top 10 ranking, slightly below 6% but still higher than most states.
 
🧐 What This Means for the Market
✅ Zombie foreclosure rates are still low overall (3.27% nationally) — even though some states show much higher local concentrations. 
✅ Higher rates in specific states suggest pockets of persistent vacancy that can affect neighborhoods and local pricing. 
✅ For agents and investors, this data helps identify where abandoned homes are more prevalent, potentially signaling areas needing field services, preservation, REO expertise, or long-term repositioning.

 
📈 Why the Rates Matter
Even though zombie foreclosures represent a small slice of the total foreclosure market, they’re important because:

They signal homes stuck in the foreclosure pipeline longer than usual
They can depress local home values and slow surrounding sales
They create unique opportunities for agents with default/REO expertise
This is especially relevant for agents focused on distressed property markets — BPOs, field services, valuation work, and REO listings — because understanding where the highest rates exist can guide sourcing, marketing, and institutional partnerships.

 
🧠 Bottom Line
While most of the U.S. continues to see historically low vacancy and zombie foreclosure rates, the top 10 states above show greater concentrations of homes stuck in foreclosure and vacant. That means localized opportunities and risks — not a nationwide crisis — and valuable signal when positioned correctly.

Source: ATTOM Q1 2026 Vacant Property and Zombie Foreclosure Report (via RealtyTrac).