Zombie Foreclosures Hold Near Historic Lows – NMP Skip to main content

Zombie Foreclosures Hold Near Historic Lows

Feb 23, 2026
January Foreclosures Jump YoY

A new report from ATTOM shows vacancy and zombie foreclosure rates remain low nationwide, highlighting strong homeowner equity, limited property abandonment, and continued housing supply constraints despite ongoing foreclosure activity

Vacant and abandoned properties remain rare across the U.S. housing market, even as foreclosures persist, according to ATTOM’s Q1 2026 Vacant Property and Zombie Foreclosure Report.

The report found that 1.33% of the nation’s roughly 104.8 million residential properties — about 1.4 million homes — were vacant at the start of 2026, essentially unchanged from both the prior quarter and a year earlier. The steady vacancy rate underscores the ongoing housing shortage and continued demand for available homes despite affordability challenges.

Among the 230,401 properties in the foreclosure process, only 7,540, or 3.27%, were classified as “zombie foreclosures,” meaning they had been abandoned by owners before foreclosure proceedings were completed. That share held relatively stable quarter over quarter and declined slightly from 3.34% a year earlier, reflecting continued homeowner engagement and equity retention.

ATTOM CEO Rob Barber said persistently low vacancy rates are helping support home values nationwide.

“It will come as no surprise to anyone shopping for a home that vacancy rates remain low,” said Barber. “That is one reason home prices have continued to rise despite ongoing affordability challenges. It is also encouraging for both neighborhoods and the broader market that even among properties in foreclosure, vacancy rates remain relatively low.”

Zombie foreclosure activity declined quarter-over-quarter in 28 states and the District of Columbia, reinforcing the broader trend of limited abandonment. Nationally, zombie properties continue to represent a small share of distressed inventory, as most homeowners remain in their homes during the foreclosure process or are able to sell before default.

At the state level, zombie foreclosure rates varied significantly. South Dakota posted the highest share, with 17.9% of properties in foreclosure classified as vacant or abandoned, followed by Kansas (10.6%), Iowa (7.0%), and Missouri (6.9%). By contrast, several states — including New Hampshire and West Virginia — reported no zombie foreclosures during the quarter. New York recorded a 3.3% zombie foreclosure rate, closely aligning with the national average.

Overall, the report suggests that while foreclosure activity remains present, strong homeowner equity and persistent housing demand are preventing a widespread increase in vacant or abandoned homes, helping preserve neighborhood stability and limit distressed supply entering the broader market.

About the author
Published
Feb 23, 2026
Higher Mortgage Rates Shrink Purchase Demand, Expand Buyer Leverage

Pending sales fell to their lowest level since early April, but lower asking prices and reduced competition give originators more options to structure deals for qualified borrowers

Jul 31, 2026
Even Stable Public-Service Careers No Longer Guarantee Homeownership

Younger teachers, health care workers, first responders, and military households can afford median-priced homes in only a fraction of major metros

Jul 31, 2026
Buyers Gain Negotiating Power In 41 Major Housing Markets

Price cuts and longer listing times are creating opportunities for loan officers to help borrowers negotiate seller concessions, but leverage varies sharply by metro

Jul 30, 2026
Fannie Mae Purchase Volume Jumps 33% In Second Quarter

The GSE financed 201,000 home purchases, while appraisal alternatives pushed estimated borrower closing-cost savings to $3 billion

Jul 29, 2026
Second-Home Lending Grows Faster Than Primary-Home Market

Vacation-home mortgages rose 4.1% in 2025, led overwhelmingly by affluent borrowers

Jul 28, 2026
Credit Score Battle Picks Up Speed With FICO, VantageScore Gains

FICO 10T enrollment tops 70 lenders while VantageScore 4.0’s presence in TransUnion mortgage credit pulls jumps from less than 5% to roughly 30%

Jul 28, 2026