U.S. Foreclosures Rise 18% as Homeowners Struggle With Mortgages

More U.S. properties have received foreclosure filings over the past year. Despite a slight 8% dip in foreclosures from March 2026 to April 2026, year-over-year foreclosures increased 18% from April 2025 to April 2026, according to Attom data. 

How many properties faced foreclosure activity in April? Attom’s U.S. Foreclosure Market Report said there were 42,430 U.S. properties with foreclosure filings in April, a category that includes default notices, scheduled auctions, and bank repossessions.

Foreclosure is a process and lenders started foreclosure proceedings on 28,414 U.S. properties during April 2026. This was down 6% from March and up 12% from a year earlier. Lenders completed foreclosures repossessing 5,098 properties in April 2026. This was down 3% from the previous month but up 42% from April 2025.

Nationally, 1 in every 3,388 housing units had a foreclosure filing. But some states are worse off than others in this category. The states with the worst foreclosure rates were Delaware (1 in every 1,739 HU), South Carolina (1 in 1,745 HU), Florida (1 in 2,092 HU), Indiana (1 in 2,129 HU), and Illinois (1 in 2,262 HU), according to Attom. 

Homeowners are facing high borrowing costs and affordability challenges and some homeowners are struggling to stay current on their mortgage payments. But strong equity in homes and relatively tight underwriting are two factors limiting foreclosure pressure, according to Attom. 

“Foreclosure activity continued its gradual trend higher in April, with both foreclosure starts and completed foreclosures posting annual gains,” said Rob Barber, Chief Executive Officer at Attom, in a press release. 

“While overall filings declined from the previous month, the year-over-year increases suggest lenders may be working through distressed inventory as higher borrowing costs and affordability challenges impact some homeowners. Even so, foreclosure activity remains significantly below pre-pandemic levels.”

The foreclosure process differs from state to state. There are generally two ways to move forward with a foreclosure when a borrower falls a few months behind on a mortgage payment. A judicial foreclosure requires a lawsuit. 

But in some states a lender may foreclose on a property without going to court. This is called a non-judicial foreclosure and is carried out in a series of steps including written notices, according to the Consumer Financial Protection Bureau.

Consumers struggling with mortgage payments should reach out to lenders as soon as possible and ask about assistance. It is also important to act promptly on any notices from a lender regarding a mortgage.

The U.S. Department of Housing and Urban Development offers tips about avoiding foreclosure. One tip is reading loan documents that will explain what a lender may do if mortgage payments are missed. So take a close look at a mortgage loan and find out just what will happen if any payments are missed.

Prioritizing spending is another important tip. Once healthcare is paid, paying a mortgage should be a top priority. Look over finances and search for spending, such as entertainment, that can be cut. 

Use assets. This is the time to assess assets and sell those that will help cover the costs of mortgage payments. Selling a second car or some jewelry could provide the money needed to get a mortgage payment back on track. Getting a second job is another way to boost income enough to meet mortgage payments. 

Avoid working with for-profit companies that promise to negotiate with a mortgage lender in exchange for hefty fees, often worth two to three months of mortgage payments.

Watch out for foreclosure recovery scams. In these schemes, a company will claim it can stop a foreclosure if the homeowner signs a document giving the company the right to act on a homeowner’s behalf. Don’t fall for this. By signing such a document, a homeowner may actually be handing over the title of their home. 

U.S. properties with foreclosure filings reached 42,430 in April. This was an 8% decrease from March but an increase of 18% from April 2025. High borrowing costs and affordability challenges are impacting foreclosure rates.

Prioritizing spending, selling assets, and getting a second job are ways to shore up the money needed for mortgage payments. Steer clear of companies that promise to negotiate with a mortgage lender but charge a hefty price tag. 

Beware of companies that claim they can stop a foreclosure if a homeowner signs a document giving the company the authority to act on a homeowner’s behalf. These are scams.