Residential Real Estate News
U.S. Home Foreclosures Climb for Eleventh Straight Month in January
U.S. foreclosure activity climbed on an annual basis for the 11th consecutive month in January 2026, underscoring mounting strain in pockets of the housing market even as overall distress levels remain far below post-financial-crisis highs.
A total of 40,534 properties nationwide recorded foreclosure filings -- including default notices, scheduled auctions and bank repossessions -- according to data released by property analytics firm ATTOM. The figure declined 10% from December but was 32% higher than a year earlier.
"Foreclosure activity in January rose year over year for the eleventh straight month, continuing a trend that has now carried into early 2026," ATTOM Chief Executive Officer Rob Barber said in a statement. While foreclosure starts increased 26% from January 2025 and completed repossessions surged nearly 59%, Barber noted that aggregate volumes remain historically subdued, indicating that most homeowners continue to maintain stable payment positions despite elevated housing costs and broader economic pressures weighing on select markets.
Nationally, one in every 3,547 housing units had a foreclosure filing during the month. Delaware posted the highest foreclosure rate, with one filing for every 1,612 homes, followed by Nevada at one in 1,983 and Florida at one in 2,067. South Carolina and Maryland rounded out the top five, at one filing per 2,351 and 2,430 housing units, respectively.
Among metropolitan areas with populations exceeding 200,000, Trenton, New Jersey registered the most acute foreclosure rate, with one filing for every 1,087 housing units. Punta Gorda, Florida; Fayetteville, North Carolina; Lakeland, Florida; and Vallejo, California followed closely behind.
Lenders initiated foreclosure proceedings on 26,369 properties in January, a 7% monthly decline but a 26% increase from a year earlier. Florida recorded the highest number of starts at 3,523, trailed by Texas with 3,116 and California with 2,790. Georgia and New York completed the top five. At the metropolitan level, New York City led with 1,295 starts, followed by Chicago, Houston, Miami and Los Angeles.
Completed foreclosures -- or real-estate-owned (REO) properties -- totaled 4,714 for the month, down 21% from December but up 59% year over year. Texas posted the largest number of lender repossessions at 573, followed by California at 415 and Florida at 327. Pennsylvania and Illinois also ranked among the highest. Chicago recorded the most REO activity among large metro areas, ahead of Philadelphia, Houston, Dallas and New York.
The data point to a housing market where distress is rising unevenly rather than systemically, with foreclosure volumes climbing from pandemic-era lows but remaining a fraction of levels seen during the late-2000s housing downturn.
