Completed foreclosure auctions rose 23% year over year in the second quarter of 2026, expanding the pipeline of distressed properties moving through the US housing market. Scheduled auctions increased 13%, signaling that more properties could reach foreclosure sales in the months ahead, according to new Auction.com data.
The increase comes as buyers continue to face a steep affordability gap in the conventional housing market. Auction properties can trade well below estimated retail value, but repairs, financing constraints and other costs can narrow that apparent discount.
FHA and newer loans drive auction growth
Government-backed and newer mortgages accounted for much of the Q2 increase. Completed auctions involving FHA-insured loans rose 47% year over year and reached 95% of their first-quarter 2020 level.
Loans originated in 2022 or later represented 45% of completed foreclosure auctions, more than double their share a year earlier. Buyers at foreclosure auctions paid an average 66.5% of estimated retail market value in Q2, up slightly from 66.2% in the previous quarter.
National foreclosure data show a similar upward trend. ATTOM counted 227,548 US properties with foreclosure filings during the first half of 2026, up 21% year over year. This includes default notices, scheduled auctions and bank repossessions.
Foreclosure activity remains well below historical crisis levels. ATTOM described the increase as a gradual return toward more typical foreclosure patterns after years of unusually low activity.
Auction discounts can carry into resale prices
Lower seller pricing helped support stronger auction sales in Q2. Separate Auction.com research suggests some properties bought at foreclosure auction also return to the conventional market at below-average prices after renovation.
An analysis of nearly 23,000 properties purchased at foreclosure auction in 2023 found that 54% were resold within two years. Of those resales, 78% were owner-occupied, according to the company’s public-record analysis.
The properties resold for an average of $311,045, compared with a $433,323 average for the broader retail market during the period examined. The findings come from Auction.com research published as sponsored content and should not be read as a guarantee that individual auction purchases will produce similar discounts.
Renovation costs, liens, property condition, insurance and other expenses can reduce the savings implied by an auction bid. Agents evaluating these properties for clients should compare the full acquisition and rehabilitation cost with nearby listings.
What buyers need before bidding
Agents should first confirm that a buyer can meet the auction’s funding requirements and payment deadline. Any planned financing must work within that timetable, and buyers need separate reserves for repairs, title work, insurance and holding costs.
Foreclosure procedures vary by state and may be judicial or nonjudicial. Agents should direct clients to the official sale notice and qualified title or legal professionals for questions involving liens, redemption rights or title.
How agents can use the auction pipeline
Rising auction volume gives agents another source of properties to monitor, particularly in markets with elevated foreclosure activity. It can also create future listing opportunities when distressed homes are renovated and returned to the retail market. For buyer clients, the comparison should be between nearby listings and the auction property’s full cost after repairs, title work, insurance and financing — not the winning bid alone.