ATTOM has released its May 2026 U.S. Foreclosure Market Report, which showed there were a total of 40,355 properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — down 5 percent from a month ago and up 14 percent from a year ago.
“While foreclosure activity eased from April levels, the broader trend remains one of gradual year-over-year growth,” ATTOM CEO Rob Barber, said in a release. “Foreclosure starts and completed foreclosures both increased compared to last year, reflecting ongoing pressure on some homeowners as elevated mortgage rates, rising ownership costs and affordability constraints persist. At the same time, foreclosure volumes remain well below historical norms, indicating that the housing market continues to show resilience despite these challenges.”
One in every 3,562 housing units nationwide had a foreclosure filing in May. Florida recorded the worst foreclosure rate in the country, with one in every 2,110 housing units having a foreclosure filing. South Carolina ranked second (one in every 2,287 housing units), followed by Maryland (one in every 2,369 housing units), Nevada (one in every 2,386 housing units), and Indiana (one in every 2,516 housing units).
Among metro areas with populations of 2 million or more, Cleveland recorded the worst foreclosure rate in May, with one filing for every 1,524 housing units. Following Cleveland were Baltimore (one in every 1,804); Tampa, Fla. (one in every 1,878); Riverside, Calif. (one in every 1,980 housing units); and Orlando, Fla. (one in every 2,034).
Lenders initiated the foreclosure process on 27,304 properties in May, down 4 percent from the previous month but up 13 percent from a year ago.
Texas led the nation in foreclosure starts in May (3,590 foreclosure starts), followed by Florida (3,315); California (2,530); Georgia (1,161); and Illinois (1,150).
Contrary to the national trend, among metropolitan areas with a population of at least 200,000 with at least 20 foreclosure starts, the following saw the largest year-over-year declines in foreclosure starts in May: Santa Rosa, Calif. (decrease from 93 foreclosure starts in May 2025 to 21 in May 2026); Honolulu (decrease from 68 to 30 foreclosure starts); Seattle (decrease from 196 to 99); Visalia, CA (decrease from 39 to 22); and Greeley, Colo. (decrease from 78 to 45).
Lenders repossessed 4,092 properties through completed foreclosures (REOs) in May, down 20 percent from the previous month but up 6 percent from a year ago.
States with the highest number of REOs in May were Texas (519 REOs); California (427); Florida (340); Illinois (223); and Michigan (222).
Those major metropolitan statistical areas (MSAs) with a population greater than 200,000 that saw the highest number of REOs in May included: Chicago (204 REOs); Detroit (124); Houston (122 REOs); Dallas (88 REOs); and New York (84 REOs).