08/27/2026
DON’T LET THE SUMMER SLOWDOWN FOOL YOU
FORECLOSURES ARE STILL RISING.
ATTOM’s July 2026 numbers show:
• 39,906 properties had foreclosure filings
• 26,648 new foreclosures were started
• 4,764 properties completed foreclosure and became REO
Compared with July 2025, total foreclosure activity increased 10%, foreclosure starts increased 10% and completed foreclosures jumped 23%.
That last number matters.
These properties aren’t just entering foreclosure. More of them are completing the process and becoming REO.
Some people will look at the June and July numbers and say foreclosures are leveling off. I don’t believe that for a minute.
We see this slowdown almost every summer. People at the banks, servicers, law firms, trustees and asset management companies take vacations. When 10% to 20% of the people responsible for processing files are out of the office, the entire pipeline slows down.
That doesn’t mean homeowners suddenly stopped falling behind. It means fewer files were processed.
Once everyone gets back from summer vacations, we fully expect foreclosure filings, starts and completions to begin climbing again.
Based on what we are seeing in the pipeline, I still believe we could finish 2026 at approximately 525,000 properties with foreclosure filings.
The markets with the highest July foreclosure rates included:
1. Punta Gorda, Florida - 1 in every 899 housing units
2. Killeen, Texas - 1 in every 1,359
3. Las Vegas, Nevada - 1 in every 1,394
Nobody is calling for another 2008 crash. That isn’t what this is.
This is a slow-burn distress cycle that will continue building over the next several years.
Inventory is increasing. Properties are taking longer to sell. Sellers are cutting prices. Insurance, taxes, HOA assessments and other ownership costs keep rising. Equity is beginning to disappear in softer markets. “Financial Stress” is still rising.
RIGHT NOW, THERE ARE NEARLY 2.2 MILLION HOMEOWNERS ALREADY DELINQUENT and behind on their mortgages and the more important number is that the 90+ day delinquencies are also rising faster than expected - meaning recovery is now even less likely.
These folks now must either try to sell or face foreclosure.
For lenders and servicers, a properly handled short sale (a/k/a “coordinated sale”) will usually mean a faster recovery, lower carrying costs, less liability and a smaller loss than completing the foreclosure and taking the property back as REO. Hence, they are being encouraged.
For REO brokers, short-sale specialists and agents trained to handle coordinated sales, this is a tremendous opportunity.
Probably 90% of agents don’t understand this market. They don’t know where to find distressed homeowners, how to approach them or how to get these transactions closed.
That leaves the market wide open for those who do.
These sellers are motivated. They are easier to identify than ever because of today’s data and technology. And there is far less competition than in the traditional listing market.
The distressed market is not just coming back. It is already here!
The people who prepare now will be the ones helping the most homeowners and handling the most business as this cycle continues to build.
