A new foreclosure report shows that filings affected 227,548 US properties during the first half of 2026, up 21% from the same period last year. The total, published in ATTOM’s midyear foreclosure report, includes default notices, scheduled auctions, and bank repossessions — not only homes lenders have taken back. Filings were also 28% higher than during the first half of 2024.
Separate first-quarter data shows that repayment stress is concentrated among government-backed loans. FHA delinquencies reached 11.88%, while VA delinquencies rose to 4.99%, according to the Mortgage Bankers Association’s National Delinquency Survey. The conventional-loan rate was 2.75%. For agents, the national increase is less important than whether distressed properties are beginning to reach the listing pipeline in their local markets.
Foreclosure filings are rising from low levels
Foreclosure starts rose 18% during the first half of 2026, while completed repossessions increased 33% from a year earlier. Even after those increases, only 0.16% of US housing units — one in every 632 — received a filing.
Completed foreclosures remained 26% below the first half of 2020. ATTOM characterized the increase as a gradual return toward more typical foreclosure patterns after years of unusually low activity.
Processing times also shortened. Properties completed in the second quarter spent an average of 563 days in foreclosure, down 13% year over year and the shortest period since 2013. Faster processing moves existing cases toward resolution sooner; it does not measure new delinquencies.
FHA loans show the sharpest deterioration
FHA delinquency rose 126 basis points from a year earlier. VA delinquency increased 36 basis points, while the conventional rate rose five basis points.
Higher property taxes, insurance premiums, and escrow shortages can increase a borrower’s monthly payment even when the mortgage rate is fixed. FHA borrowers may have less room to absorb those increases because the program frequently serves buyers using smaller down payments or carrying more debt relative to income.
VA borrowers faced a gap in assistance after the Veterans Affairs Servicing Purchase program ended on May 1, 2025. VASP had allowed the department to purchase certain delinquent VA-backed loans and restructure them with more manageable terms.
The VA launched its Partial Claim Program on June 15, 2026. Eligible borrowers must first complete a three-month trial payment plan. The servicer then advances the amount needed to bring the loan current, and the VA reimburses the servicer.
The partial-claim balance becomes a subordinate obligation generally due when the mortgage is paid off, refinanced, or the property is sold. Servicers have until November 28, 2026, to implement the program.
VA-backed mortgages remain an important part of the purchase market. The department guaranteed more than 500,000 loans in fiscal year 2025, a trend The Close examined in its report on rising VA loan volume.
Five states lead foreclosure filings
Florida recorded the highest first-half foreclosure rate at 0.27% of housing units. South Carolina followed at 0.26%, while Indiana and Delaware each recorded 0.25%. Illinois had a rate of 0.23%.
Agents should compare the national report with county filings, distressed listings as a share of inventory, bank repossessions, and days on market. Foreclosures are unlikely to affect local prices unless distressed inventory grows faster than buyer demand can absorb it.
How agents should respond to payment stress
Agents can check in with past clients where foreclosure activity or carrying costs are rising. Keep the outreach informational and provide assistance resources when a homeowner raises a payment concern.
Homeowners struggling with payments should contact their mortgage servicer as early as possible. FHA borrowers can seek free foreclosure-prevention assistance from a HUD-approved housing counselor. Veterans can review the VA’s foreclosure-avoidance options or speak with a VA loan technician.
Agents should not recommend a loan modification, short sale, deed in lieu, or other loss-mitigation strategy. Those decisions require guidance from a mortgage servicer, housing counselor, attorney, or other qualified professional.
Watch distressed inventory, not just filings
The next MBA survey will show whether FHA and VA delinquencies are stabilizing. Agents should also track local foreclosure starts, completed repossessions, distressed listings, and how quickly those homes sell.
The national increase does not signal an immediate price correction. Local prices face greater pressure only when distressed listings accumulate faster than buyers absorb them.