Foreclosure rates in the United States have climbed to their highest level since 2020, with 118,727 properties entering foreclosure during the first three months of 2026. This represents a 26 percent increase compared to the same period last year, according to a recent report from housing data and analytics firm ATTOM.
Regional Disparities Highlighted
The data reveals significant regional variation. States with the highest foreclosure rates—measured as the number of homes in foreclosure relative to total homes—include Indiana (1 in 739), South Carolina (1 in 743), Florida (1 in 750), Delaware (1 in 757), and Illinois (1 in 833). Among cities with populations exceeding 200,000, the South bore the brunt of the surge. Florida's Lakeland and Punta Gorda recorded the highest foreclosure rates nationwide, followed by Columbia, South Carolina; Fayetteville, North Carolina; and Macon, Georgia.
Foreclosure Starts on the Rise
Foreclosure starts—the initiation of the foreclosure process—also increased by 20 percent year-over-year. This uptick suggests that more homeowners are struggling to keep up with mortgage payments amid persistent affordability challenges.
Mixed Expert Opinions
Reactions to the data are divided. Rob Barber, CEO of ATTOM, interprets the numbers as a sign that Americans are feeling the strain of higher prices across essential goods and services, which may hinder their ability to pay mortgages. Conversely, Donna Schmidt, CEO of DLS Servicing, views the spike as a normalization after five years of artificially low foreclosure rates due to COVID-19-era homeowner protections. Schmidt warned that the backlog of deferred foreclosures could lead to a surge in proceedings over the next two years.
While the current trend is not yet alarming, experts advise monitoring the situation closely as economic pressures persist.
