U.S. Foreclosure Filings Jump 32% in January 2026 — What It Means for Buyers and Investors

New data from property analytics firms confirm that foreclosure activity continues to rise across the United States, extending a year-over-year growth trend into early 2026. According to the latest market reports, 40,534 U.S. properties recorded foreclosure filings in January — a 32% increase from the same month last year. 

Foreclosure filings — which include default notices, scheduled auctions, and bank repossessions — were down about 10% from December, indicating some seasonal fluctuation, but the annual rise continues a broader pattern of growing distressed activity. This marks the eleventh consecutive month that foreclosure activity has increased compared with the previous year. 

States with some of the highest foreclosure rates include Delaware, Nevada, and Florida, underscoring that markets across diverse regions are feeling the effects of economic pressures and tighter homeowner budgets. 

While foreclosure starts are up significantly, completed foreclosures rose even more sharply, suggesting that more properties are advancing all the way through the process. At the same time, overall foreclosure levels remain well below long-term historical peaks, highlighting that the market is normalizing rather than entering a crisis comparable with past housing downturns. 

What this means for buyers and investors:

• The increase in foreclosure filings may translate to a wider selection of discounted opportunities in coming months.
• Investors and bargain-hunters may find more options as properties move to auction or bank-owned status.
• For traditional homebuyers, this trend could ease competition for entry-level housing, particularly in markets where inventory has been tight for years.

As the housing market continues to balance between high home prices, interest rate considerations, and evolving inventory trends, keeping an eye on foreclosure activity offers valuable insight into where opportunities may be emerging in 2026.

By Elías DaSilva | February 16, 2026