Foreclosures climb 21% in first half of 2026, pushed by higher stress in FHA, VA mortgages
U.S. foreclosure activity rose again in the first half of 2026, with 227,548 properties receiving filings, up 21% from the same period in 2025, according to ATTOM’s midyear foreclosure report.
The recent surge in foreclosures is a concerning trend for the housing market, particularly for leaseholders and property owners who may be impacted by the increased activity. With 227,548 properties receiving foreclosure filings in the first half of 2026, up 21% from the same period in 2025, it's clear that lenders are becoming more aggressive in pursuing action against borrowers who are struggling to make payments.
The stress in FHA and VA mortgages is a key driver of this trend, as these government-backed loans are often used by first-time homebuyers and veterans who may be more vulnerable to economic shocks. As foreclosure activity continues to rise, leaseholders and property owners should be aware of the potential risks and take steps to protect their interests. This may include closely monitoring their own mortgage payments, as well as keeping an eye on the condition of neighboring properties that may be at risk of foreclosure.
As the foreclosure landscape continues to evolve, it's essential to watch for signs of stabilization or decline in foreclosure activity. The next key indicator to watch will be the number of foreclosure starts and completions in the third quarter of 2026, which will provide further insight into whether the trend is continuing or beginning to reverse. Additionally, policymakers and industry stakeholders will likely be keeping a close eye on the FHA and VA mortgage markets to see if targeted interventions are needed to support borrowers who are struggling to make payments.
Originally reported by housingwire.com. LeaseNews adds analysis for real estate & property readers.