Foreclosure Starts Increase 13 Percent Year Over Year; Completed Foreclosures (REOs) Rises 6 Percent Annually
ATTOM, the leading provider of property data, AI-powered intelligence, and real estate analytics solutions, released its May 2026 U.S. Foreclosure Market Report, which shows there were a total of 40,355 U.S. properties with foreclosure filings— default notices, scheduled auctions or bank repossessions — down 5 percent from a month ago and up 14 percent from a year ago.
“While foreclosure activity eased from April levels, the broader trend remains one of gradual year-over-year growth,” said Rob Barber, CEO at ATTOM. “Foreclosure starts and completed foreclosures both increased compared to last year, reflecting ongoing pressure on some homeowners as elevated mortgage rates, rising ownership costs, and affordability constraints persist. At the same time, foreclosure volumes remain well below historical norms, indicating that the housing market continues to show resilience despite these challenges.”
Florida, South Carolina, and Maryland post worst foreclosure rates in May
One in every 3,562 housing units nationwide had a foreclosure filing in May 2026. Florida recorded the worst foreclosure rate in the country, with one in every 2,110 housing units with a foreclosure filing. South Carolina ranked second (one in every 2,287 housing units), followed by Maryland (one in every 2,369 housing units), Nevada (one in every 2,386 housing units), and Indiana (one in every 2,516 housing units).
Among metro areas with populations of 2 million or more, Cleveland, OH recorded the worst foreclosure rate in May 2026, with one filing for every 1,524 housing units. Following Cleveland were Baltimore, MD (one in every 1,804); Tampa, FL (one in every 1,878); Riverside, CA (one in every 1,980 housing units); and Orlando, FL (one in every 2,034).
Texas, Florida, and California top nation in foreclosure starts
Lenders initiated the foreclosure process on 27,304 U.S. properties in May 2026, down 4 percent from the previous month but up 13 percent from a year ago.
Texas led the nation in foreclosure starts in May 2026 (3,590 foreclosure starts); followed by Florida (3,315 foreclosure starts); California (2,530 foreclosure starts); Georgia (1,161 foreclosure starts); and Illinois (1,150 foreclosure starts).
Contrary to the national trend, among metropolitan areas with a population of at least 200,000 with at least 20 foreclosure starts, the following saw the largest year-over-year declines in foreclosure starts in May 2026: Santa Rosa, CA (decrease from 93 foreclosure starts in May 2025 to 21 in May 2026); Honolulu, HI (decrease from 68 to 30 foreclosure starts); Seattle, WA (decrease from 196 to 99 foreclosure starts); Visalia, CA (decrease from 39 to 22 foreclosure starts); and Greeley, CO (decrease from 78 to 45 foreclosure starts).
Completed foreclosures remain elevated from a year ago
Lenders repossessed 4,092 U.S. properties through completed foreclosures (REOs) in May 2026, down 20 percent from the previous month but up 6 percent from a year ago.
States with the highest number of REOs in May 2026 were Texas (519 REOs); California (427 REOs); Florida (340 REOs); Illinois (223 REOs); and Michigan (222 REOs).
Those major metropolitan statistical areas (MSAs) with a population greater than 200,00 that saw the highest number of REOs in May 2026 included: Chicago, IL (204 REOs); Detroit, MI (124 REOs); Houston, TX (122 REOs); Dallas, TX (88 REOs); and New York, NY (84 REOs).
Key highlights from the May 2026 foreclosure data
ATTOM’s May 2026 U.S. Foreclosure Market Report found that 40,355 properties nationwide had a foreclosure filing, down 5 percent from April but up 14 percent from May 2025. The increase marks the continuation of a trend of rising foreclosure activity on an annual basis. Foreclosure starts climbed 13 percent year over year to 27,304, while completed foreclosures (REOs) rose 6 percent to 4,092. Despite these annual increases, overall foreclosure activity remains well below pre-pandemic levels.
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