Summary
The number of American homeowners facing foreclosure has increased in the first quarter of 2026. Rising borrowing costs and economic uncertainty linked to the Middle East conflict have contributed to more people struggling to pay their mortgages.
Key Facts
- Between January and March 2026, 118,727 properties had foreclosure filings, a 6% rise from the previous quarter and 26% higher than a year ago.
- One in every 1,211 housing units nationwide faced foreclosure filings in this period.
- The states with the highest foreclosure rates included Indiana, South Carolina, Florida, Delaware, and Illinois.
- Cities with the worst foreclosure rates were mostly in the South, including Lakeland and Punta Gorda in Florida, and Columbia in South Carolina.
- Foreclosure starts—when lenders begin the process to repossess homes—increased by 7% from the previous quarter and 20% from a year earlier.
- Texas, Florida, California, Georgia, and New York had the most foreclosure starts in early 2026.
- Property repossessions by lenders increased by 2% from the previous quarter and 45% compared to the previous year.
- March 2026 saw a sharp rise in foreclosures, with 45,921 properties affected, linked in part to economic effects following the Middle East conflict.
