I apologize in advance. This isn’t great news. Foreclosure filings this Spring 2026 totaled 42,430 properties in the U.S., including default notices, auctions, and bank repossessions, representing an 18% year-over-year increase but an 8% decline from March 2026 according to realtor.com. Nationwide, 1 in every 3,388 housing units had a foreclosure filing and foreclosure starts increased 12% annually, and completed foreclosures (REOs) rose 42% year-over-year.

We had massive foreclosures during the 2008-era Recession in our country. Sadly, I had clients call days before the bank repossessed the property and that was too late to offer help. If you’ve never been through this process, it can be very stressful. Foreclosure is the legal process where the lender takes a property back because the borrower failed to make payments. When you buy a home, the property serves as collateral for the home loan. Miss a payment and the homeowner goes into default with the bank, just like if you missed a car payment with your lender.

Once you go into default the lender sends out a notice. You have a chance to make the payment up if you can, with penalties and interest, but after 90 days the lender will file a Notice of Default wherein you get 30 days to pay what’s in arrears to reinstate your loan. If you don’t pay what’s in arrears, the lender will sell the property through the legal process of foreclosure.  During that Recession I saw banks either being aggressive to foreclose or taking months, even years to do so depending on the lender.

The process isn’t fun for a homeowner and for me to help someone I must have time to work with their lender, not just a few days. Generally, your credit will be trashed for a while if you have a foreclosure on your credit, but a short sale can be less damaging. A short is where you sell your home or property for less than what you owe on your mortgage, with the lender’s approval.

States right now with heavy foreclosure rates include Delaware (due to rising housing costs and a recent hike in property taxes); South Carolina where there are affordability issues in some areas; and Florida where insurance and condo fees have skyrocketed and people are just walking away from their units.

What’s driving foreclosure rates? Higher mortgage rates, rising insurance and HOA rates/fees, and property tax jumps, and job loss. Plus, people are finding it hard to find good paying jobs, making hundreds of applications before landing decent pay. Foreclosure rates have been rising but I’m not seeing an overall crisis yet. I watch rates in Utah and yes, foreclosure numbers are growing. IF you are facing losing your property and don’t see a way out, do call me or your REALTOR who can help stop the stress and help with a short sale. Do NOT wait until the last minute!

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