A total of 227,548 properties in the United States made foreclosure filings in the first six months of this year, a 21 percent increase from the same period last year, according to real estate analytics company ATTOM.
The first half foreclosure filings are also up by 28 percent from the same period two years back, ATTOM said in a July 16 report. In states with a minimum of 500 foreclosure filings, Idaho registered the largest year-over-year increase: 59 percent. This was closely followed by Colorado with 57 percent, Georgia with 52 percent, and North Carolina with 47 percent.
Foreclosure is a legal process by which a mortgage lender
a property after the borrower fails to make mortgage payments on time. Initially, the lender issues a notice of default once payments are missed for 90 days. If the borrower fails to settle the claim within 30 days, the lender can repossess the property and sell it off.
In the first half of the year, 0.16 percent of all housing units made a foreclosure filing, according to ATTOM.
Florida had the highest rate, with 0.27 percent of housing units making a filing. South Carolina was in the second spot with a 0.26 percent rate, followed by Indiana and Delaware, both with a rate of 0.25 percent.
“Foreclosure activity continued to increase in the first half of 2026, but the broader picture remains one of a market that is gradually returning to more typical patterns,” Rob Barber, CEO at ATTOM, said in a statement. Foreclosure filings in a year’s first half hit their lowest level in 2021 amid the COVID-19 pandemic, but have risen since. Prior to the pandemic, first-half filing numbers were higher than the 2026 figure for every single year between 2008 and 2019.
However, the filing increase in the first half of 2026 also suggests “that some homeowners may be facing greater financial strain than they were a year ago,” Barber said.
In a June 12 post, legal services company Nolo predicted foreclosure rates would gradually rise in the latter part of 2026.
The company cited factors such as high interest rates and reduced buyer demand as contributing to a growing housing crisis. Unless there is significant relief or intervention, the trend of rising foreclosures is likely to continue, it said.
High Mortgage Rates, Avoiding Foreclosure
The average weekly rate on a 30-year fixed-rate mortgage has mostly remained above the 6 percent level since September 2022, according to data from Freddie Mac.
Since mid-May, rates have been hovering around the 6.5 percent level. For the week ending July 15, rates were at 6.55 percent.
Meanwhile, demand in the housing market has subsided, with some house hunters backing off due to high costs, real estate brokerage Redfin said in a July 16 statement.
“High mortgage rates mean that even homes in the most affordable price point—under $350,000 in the Grand Rapids area—are a stretch for a lot of buyers, and they’re hard to find and competitive,” Christine Kooiker, a Redfin Premier agent in Grand Rapids, Michigan, said in a statement.
Elevated mortgage rates can raise monthly
for homeowners who have taken loans at variable rates. This can squeeze them financially, potentially pushing some properties into foreclosure.
For homeowners struggling to pay their monthly mortgages, there are some ways they can avoid having their properties foreclosed. One way is to refinance the mortgage, according to a Sept. 26, 2025, post by financial services company Rocket Mortgage.
Refinancing can help a homeowner shift to a more affordable monthly payment plan in case the current one is financially challenging.
Another option is to seek mortgage forbearance from the lender. If a lender approves, mortgage payments may be temporarily paused or lowered to give the homeowner enough time to get their finances back in shape.
