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
Inventory Recovery Fails To Revive Purchase Market

Existing-home supply reached its highest level since 2019, but elevated payments and economic uncertainty pushed sales to a 14-month low

Sep 11, 2026
Rising Insurance Costs Complicate Mortgage Qualification

Homeowners who switched carriers saved $440 a year on average, giving originators another affordability variable to address early

Sep 11, 2026
Non-QM Captures More Than 11% Of Mortgage Lock Volume

Investor and DSCR loans drive the segment’s growth as conforming lending loses ground

Sep 09, 2026
Before Mortgage Can Be AI-Ready, We Need To Be Data-Ready

AI’s potential depends on accurate, consistent, and trustworthy data — and mortgage companies must build that foundation first

Sep 08, 2026
Crypto-Backed Home Financing Comes With New Trade-Offs

Better may reuse bitcoin pledged by mortgage borrowers, while competing loan structures expose customers to price-driven liquidation

Sep 08, 2026
Nearly Half Of Americans Would Consider A 3D-Printed Home

Consumer interest is growing, but concerns about durability, appraisals, code compliance, and resale value could complicate financing

Sep 03, 2026