The American housing market just flashed a warning signal that hasn’t been this bright since the early pandemic era. Foreclosure filings hit 118,727 properties in the first quarter of 2026, a 26% jump from the same period a year ago and the highest quarterly total since 2020.
The data comes from ATTOM Data Solutions’ Q1 2026 US Foreclosure Market Report, published on April 16. Beyond the headline number, the underlying trends paint an even more uncomfortable picture for certain pockets of the market.
The numbers behind the surge
Foreclosure starts, the initial legal filings that kick off the process, reached 82,631 in Q1. That’s a 20% increase compared to a year earlier.
But the sharpest spike came in completed foreclosures. Bank-owned real estate repossessions, known as REOs, totaled 14,020 for the quarter. That represents a 45% year-over-year increase, meaning lenders are not just filing more paperwork but actually taking back more homes.
