“January inventory activity increased year-over-year for the eleventh consecutive month, continuing a trend that has already begun in early 2026,” said Rob Barber, CEO of ATTOM, in the report. “Foreclosure starts are up 26% from last year, while completed sales are up nearly 59%.
“Although foreclosure activity has been on the rise, overall levels remain below historic peaks, suggesting that the majority of homeowners are still in a stable position as higher housing costs and economic pressures put pressure on certain pockets of the market.”
Nationwide, one in every 3,547 homes was on file for sale in January.
The states with the highest foreclosure rates were Delaware, which affected one in every 1,612 homes; Nevada, one in 1,983; in Florida, one in 2,067; In South Carolina, one in 2,351; and in Maryland, one in 2,430.
Among metropolitan areas with at least 200,000 residents, Trenton, New Jersey, posted the highest number of foreclosures, with one filing for every 1,087 homes. It was followed by Punta Gorda, Florida (one in every 1,187 houses); Fayetteville, North Carolina (one in 1,257); Lakeland, Florida (one in 1,262); and Vallejo, California (one in 1,287).
Lenders started foreclosures on 26,369 properties across the country in January, down 7% from the previous month but up 26% from a year ago.
Florida recorded the highest number of foreclosures with 3,523, followed by Texas (3,116), California (2,790), Georgia (1,351) and New York (1,304).
Among metro areas with a population of more than 200,000, New York City had the biggest jump at 1,295, followed by Chicago (1,053), Houston (1,040), Miami (851) and Los Angeles (781).
Mortgage servicers facing a high volume of foreclosures will need to adjust their operating models, said Mirza Hodzic, the organization’s managing director and founder. BlackWolf Advisory Group.
“The 11-month foreclosure process is a kind of slow wave that expands workforce capacity, not just in foreclosure departments but throughout the entire automation ecosystem,” Hodzic said in a statement. “As foreclosure transfers increase, pressure increases on access to borrowers, loss mitigation reviews, default management, and all offerings become bottlenecks if workflows are not robust.”
He added that difficulties often arise first in compliance-driven changes.
“Employees don’t need a big queue. They need a smart operating model with high automation, including pre-planning and segmentation, tight controls on data quality and timelines, and automation of routine steps,” he said.
“When volumes increase, small process gaps such as missing documents, missed deadlines and vendor delays, quickly turn into backlogs that drive higher costs, higher risks and slower resolution times,” he added.
Lenders also took 4,714 properties in January through foreclosures, or owner-occupier (REO) actions. That’s down 21% from December but up 59% from last year.
Texas led the nation in REOs with 573, followed by California (415), Florida (327), Pennsylvania (311) and Illinois (267).
Among major metropolitan areas, Chicago recorded the most completed foreclosures with 248 REOs. Philadelphia followed with 165, Houston with 152, Dallas with 122 and New York with 114.
