2026 Foreclosure Update: Foreclosure Activity Continues to Rise Across the U.S. Published by KW Default Solutions

The latest foreclosure data from ATTOM shows that while foreclosure activity dipped slightly compared to April, the overall trend continues to move upward compared to last year.

For homeowners, investors, lenders, and real estate professionals, this is another reminder that today's housing market is changing—and those who prepare now will be in the best position to help clients and capitalize on opportunities.

Key Takeaways
According to ATTOM's May 2026 U.S. Foreclosure Market Report:

40,355 U.S. properties had a foreclosure filing during May.
Foreclosure filings were down 5% from April 2026.
Foreclosure filings were still up 14% compared to May 2025.
27,304 foreclosure starts were initiated, a 13% increase year over year.
4,092 bank repossessions (REO properties) occurred during the month, up 6% from one year ago.
While foreclosure numbers remain well below the levels seen during the Great Recession, they continue to normalize as pandemic-era protections fade and affordability challenges persist.

States with the Highest Foreclosure Rates
According to ATTOM, the highest foreclosure rates during May were found in:

-Florida
-South Carolina
-Maryland
-Nevada
-Indiana
These states continue to experience elevated foreclosure activity and may present increasing opportunities for agents specializing in default services, loss mitigation, short sales, and REO properties.

States with the Most Foreclosure Starts
The largest number of new foreclosure filings occurred in:

-Texas
-Florida
-California
-Georgia
-Illinois
These markets often represent the future pipeline of distressed properties entering the foreclosure process.

REO Inventory Continues to Grow
Bank-owned (REO) properties remain an important segment of the market.

The highest number of bank repossessions occurred in:

Texas
California
Florida
Illinois
Michigan
For investors and REO professionals, these markets may provide increasing opportunities over the coming months.

What This Means for Homeowners
If you're struggling with mortgage payments, don't wait.

Many homeowners still have equity and may have options that allow them to avoid foreclosure, including:

-Loan modifications
-Repayment plans
-Equity sales
-Short sales
-Other lender-approved alternatives
The earlier you seek guidance, the more options you may have available.

What This Means for Real Estate Professionals
The market is shifting.

Agents who understand foreclosure prevention, short sales, distressed property sales, auctions, and REO listings will be positioned to provide tremendous value to homeowners and institutional clients.

Education and preparation today can lead to significant opportunities tomorrow.

We're Here to Help
Whether you're a homeowner looking for solutions or a real estate professional looking to expand your business, KW Default Solutions provides nationwide resources, education, and support.

🌐 KWDefault.com

Source: ATTOM May 2026 U.S. Foreclosure Market Report.