Foreclosures Rising in 2026: What a 42% Jump in Repossessions Means

Are foreclosures really surging in 2026?

Yes, from a low base. According to figures presented by real estate broker and YouTube creator Wayne Turner, foreclosure filings rose about 21% in the first half of 2026 versus the same period of 2025, and bank repossessions in August were up 42% year over year. Both numbers are real increases, and they point to more delinquent loans working all the way through the legal process.

They are also not a replay of 2008. The same data shows 2025 filing activity was roughly 25% below 2019, and far below the post-crisis peak. For most buyers and sellers, the sensible reading is "distress is normalizing and rising in pockets," not "a wave of forced sales is about to flood the market."

This article walks through the figures, the likely causes, the states under the most pressure, and what to do about it. For broader context on credit stress, see our look at whether a mortgage crisis is coming.

The numbers behind the headline

Turner's figures break down as follows. He does not name the data provider for the filing counts, but the format resembles the monthly foreclosure reports published by ATTOM, so it is worth checking the original release before quoting them.

Growth has accelerated gradually. Turner says filings rose 14% in 2025 versus 2024, then 21% in the first half of 2026 versus the first half of 2025, with August up 13% year over year. By simple arithmetic, the monthly pace in early 2026 ran roughly a quarter above the 2025 average, and August was about 30% above it.

Filings versus repossessions

These two measures are easy to confuse. A foreclosure filing is a legal step, such as a default notice or auction notice, and many filings never end in a sale because the borrower catches up, sells or modifies the loan. A repossession, often called real estate owned (REO), means the lender actually took the property back.

The 42% jump applies to repossessions. Turner's interpretation is that more cases are finishing the process. That fits with the lower filing growth rate, though one month of data can swing on court calendars and processing backlogs.

What is driving the increase

Turner stresses that there is no single national cause. He points to a stack of pressures that tend to hit the same households at once.

• Higher payments for recent buyers. People who bought when rates were elevated carry larger monthly costs and have less room to absorb a shock.
• Life events. Job injury, illness or divorce can turn a one-income household into one that cannot carry the mortgage, especially with little equity to sell into.
• Consumer debt. He cites record credit card balances plus auto and student loans. The New York Fed's quarterly household debt report is the standard place to verify those totals.
• Escrow shocks. Property tax and homeowners insurance increases raise the monthly bill even when the mortgage rate is fixed and low.
• Thin equity. In markets where prices have flattened, recent buyers who put little down may be unable to sell or refinance their way out of trouble.

The new-construction escrow trap

One mechanism Turner raises is less widely discussed. He says some buyers of new homes have escrow payments set using the value of the land rather than the finished house, so the bill jumps by several hundred dollars a month after the first reassessment. He cites $600 to $900 as a typical swing, though this is his characterization rather than a published statistic.

The general lesson holds regardless: before closing on new construction, ask the lender to estimate taxes on the completed value. Our piece on Florida new construction resale losses shows how thin equity compounds this problem.

Reverse mortgages and heirs

Turner also notes that when an older borrower with a reverse mortgage dies, heirs may find little or no equity and choose to hand the property back. That is a niche source of foreclosures, but a real one.

Delinquency data points to stress in newer and FHA loans

Turner cites the Mortgage Bankers Association's second-quarter 2026 National Delinquency Survey. In his account, 4.37% of residential mortgages were delinquent, up from 3.93% a year earlier. He also gives a figure of 67% for loans in foreclosure; given the scale, that is almost certainly 0.67% of loans, so verify it against the MBA release. He adds that FHA serious delinquencies rose by 2.27 points year over year, and that the MBA flagged labor-market weakness, consumer debt and stretched affordability as warning signs.

Two more figures stand out:

• FHA foreclosure auction volume rose 73% year over year, according to an October 2026 market report he cites.
• Loans originated in 2022 or later made up 46% of foreclosure auction activity.

Why that matters: FHA loans allow low down payments, so borrowers often start with little equity. Loans from 2022 onward were also written at higher prices and rates than earlier vintages. That helps explain why distress is showing up among recent buyers instead of only long-time owners. For the jobs angle, see how the job market affects housing demand.

Where foreclosures are highest, and why timelines vary

Turner lists the five states with the highest foreclosure filing rates in the first half of 2026 as Florida, South Carolina, Delaware, Illinois and Indiana. He adds that Texas is seeing a sharp increase, though he links it to the fourth quarter, which has not fully played out as of early November.

State law shapes how fast a case moves. Judicial states require a court process; non-judicial states let lenders sell through a trustee. Turner quotes a national average of about 563 days from first missed payment to repossession, and these state averages:

The pattern is plausible, with fast non-judicial states at the top and slow judicial ones below. But figures near 3,000 days, more than eight years, look unusually high and may reflect a different measure than the 563-day national average. Treat them as directional until checked against the source.

What it means for prices and inventory

Turner says foreclosure sales do pull down values nearby, but that condition of the property matters a lot, and that appraisers and agents can account for it. That matches general market practice: comparable sales that are distressed or in poor condition are typically adjusted or weighed differently than ordinary resales.

He cites an average foreclosed-home price of $341,000, about $100,000 below the typical American home. That gap is not purely a discount. Foreclosed homes skew toward certain regions, price tiers and conditions, and many need repairs. Do not assume a $100,000 bargain on a comparable house.

For inventory, the scale is the issue. A few thousand additional repossessions a month nationally is small compared with the overall housing stock and monthly sales. The effect is concentrated in specific counties and neighborhoods where several distressed sales land close together. Our explainer on why home prices haven't dropped covers why most owners are not forced sellers.

Why this is not 2008, and what could change that

Turner does not expect a crash, arguing the numbers are far below 2008 to 2010, when he says roughly 2.5 million homes were foreclosed on over an 18-month stretch. That is a rough recollection; use ATTOM or Federal Reserve data if you need exact historical counts. The broader point is sound: lending standards since 2010 limited exotic loans, and many owners still hold large equity cushions.

Limits of the video's view

• The headline percentages compare against low bases. A 42% rise on a small number is still a small number.
• One month of repossessions, or a single quarter of auction data, can reflect court backlogs rather than a trend.
• National averages hide wide state and metro gaps; a Florida condo market and an Indiana suburb can behave very differently.
• Insurance and tax strain is real, but the video offers no data on how much of the increase it explains.
• The video also promotes a foreclosure-listing subscription and a referral network. Those are commercial interests worth keeping in mind.

What this means for you

If you are a buyer

Bank-owned homes can offer lower prices, but they often sell as-is, may have deferred maintenance, and can involve auctions that require cash. Get inspections where allowed, price in repairs, and compare against standard resales. Watch local inventory rather than the national headline.

If you are a seller

Nearby foreclosure sales can influence appraisals. Price using recent comparable sales and be realistic about condition. If you are stretched, selling before a default is usually less costly than selling after one.

If you are a homeowner

Turner's practical tips are reasonable general guidance: review your property tax assessment and appeal it if it looks too high, get several homeowners insurance quotes, and consider a higher deductible if you can afford the risk. If you are behind on payments, contact your servicer and a HUD-approved housing counselor early, since loss mitigation options are widest before foreclosure begins. This is general information, not personal financial advice.

What to watch next

• The next monthly foreclosure report from ATTOM, to see whether August's repossession spike repeats.
• The MBA's third-quarter delinquency survey, especially FHA and recent-vintage loans.
• Mortgage rates from Freddie Mac's weekly survey, which shape both refinance options and buyer demand.

The bottom line: foreclosures are rising, driven by newer, thinly capitalized loans and household cost pressure, but they remain below pre-pandemic levels. It is a trend worth watching, not yet a market-wide break.