January Foreclosures Jump 32% YoY – NMP Skip to main content

January Foreclosures Jump 32% YoY

Feb 15, 2026
January Foreclosures Jump YoY
Managing Editor

Foreclosure filings rose 32% year-over-year in January, marking the 11th consecutive monthly annual increase, as higher rates and affordability pressures drive localized mortgage stress, though overall volumes remain well below historic crisis levels

Foreclosure activity nationwide continued its year-over-year ascent in January 2026, according to the latest ATTOM Data January 2026 U.S. Foreclosure Market Report. For the 11th consecutive month, annual foreclosure filings rose, signaling a continuation of a trend that first emerged in early 2025.

In January, 40,534 properties nationwide reported foreclosure filings — which include default notices, scheduled auction notices, and bank repossessions — marking a 32% increase from January 2025. While filings were approximately 10% lower than in December 2025, the annual rise underscores mounting credit stress in certain housing market segments.

ATTOM’s report showed that foreclosure starts — cases where lenders initiate the legal process — climbed 26% year-over-year, while completed foreclosures (REOs) — properties repossessed by lenders — surged nearly 59% compared to a year earlier.

"Although foreclosure activity has been rising steadily, overall levels remain well below historic peaks, suggesting that most homeowners are still on stable footing even as higher housing costs and broader economic pressures create stress in certain pockets of the market,” said Rob Barber, CEO at ATTOM.

Despite the uptick, overall foreclosure volumes remain well below historic peaks seen during the 2007–2010 housing crisis, suggesting that broad homeowner distress has not reached crisis proportions.

Foreclosure rates varied significantly across the country, as states with the highest incidence of filings included Delaware, Nevada, and Florida, where one in every few thousand housing units entered the foreclosure process during January. Among major metropolitan areas, Trenton, New Jersey recorded the nation’s highest metro foreclosure rate, followed by locales in Florida, North Carolina, and California.

Certain large states also led in foreclosure starts, as Florida, Texas, and California saw the greatest number of new foreclosure initiations, reflecting regional pockets of elevated mortgage stress.

Economists and housing analysts view the continuing rise in foreclosure activity as a sign of underlying economic pressures — including higher interest rates, affordability challenges, and tightening credit conditions — but not an indicator of systemic housing market failure.

About the author
Managing Editor
NMP Managing Editor Eric C. Peck has 25-plus years’ experience covering the mortgage industry. He graduated from the New York Institute of Technology, where he received his B.A. in Communication Arts/Media. After graduating, he…
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