Foreclosure Filings Jump 32% From a Year Ago—These 2 Tourism States Rank Among the Highest in the Country

Foreclosure filings remain elevated across the country, up 32% from a year ago. This includes default notices, scheduled auctions, and bank repossessions. There were a total of 40,534 U.S. properties with foreclosure filings—with Delaware, Nevada, and Florida topping the list.

"Foreclosure activity in January rose year over year for the 11th straight month, continuing a trend that has now carried into early 2026,” says Rob Barber, CEO of ATTOM, a leading curator of land, property, and real estate data.

Foreclosure starts were up 26% from a year ago, while completed foreclosures increased 59%.

Nationwide, 1 in every 3,547 housing units had a foreclosure filing in January 2026, according to the firm's latest report.

"Although foreclosure activity has been rising steadily, overall levels remain well below historic peaks, suggesting that most homeowners are still on stable footing even as higher housing costs and broader economic pressures create stress in certain pockets of the market," adds Barber.

ATTOM’s report incorporates documents filed in all three phases of foreclosure: default and notice of default; notice of foreclosure; and real estate–owned or REO properties, defined as properties that have been foreclosed on and repurchased by a bank.

Worst foreclosure states

The state with the worst foreclosure rate in January 2026 was Delaware, with 1 in every 1,612 housing units with a foreclosure filing.

In Delaware, the median listing price is $480,950 and homes stay on the market an average of 77 days, according to Realtor.com® data.

"The reasons I have heard for people foreclosing on their properties mainly is due to the increase in property taxes combined with the costs going up for your everyday things needed for a person to survive," Delaware real estate agent Carol Quattrociochi, with eXp Realty, who specializes in foreclosed properties, tells Realtor.com.

Don Ash of Alliance Realty in Delaware tells Realtor.com that a recent reassessment is to blame for property taxes skyrocketing in the state.

"We hadn't had a reassessment in 40 years—1984 was the last time," he says. "A lot of people's property taxes have now increased, some by 50%, and they're just not able to afford those payments."

Ash says he currently has two foreclosed properties that are under contract and five more in the pipeline.

Behind Delaware on the list are Nevada (1 in every 1,983) and Florida (1 in every 2,067).

Nevada has a median listing price of $479,000, with homes staying on the market an average of 75 days. Meanwhile, Florida has a median listing price of $425,000, with homes staying on the market an average of 86 days.

"Nevada and Florida have economies tied closely to tourism, which is often the first industry severely impacted when consumer spending pulls back amid periods of uncertainty, as we are experiencing now," says Joel Berner, senior economist at Realtor.com.

"This leads to job loss and struggles with paying mortgages. Also, both of these states have high rates of condo ownership, and as our recent research has shown, condos are experiencing more expensive monthly fees that could hinder owners' ability to make mortgage payments. In Florida, rising insurance costs could be preventing successful payments as well."

Rounding out the top five were South Carolina (1 in every 2,351) and Maryland (1 in every 2,430).

The median listing price in South Carolina is $350,000, with a median time on the market of 79 days. In Maryland, the median listing price is $399,999 and the median time on the market is 60 days.

Metros with the most foreclosures

In terms of metro areas with populations of 200,000 or more, Trenton, NJ, fared the worst, with 1 filing for every 1,087 housing units. 

In Trenton, the median listing price is $415,000 and homes stay on the market an average of 65 days.

Following Trenton were Punta Gorda, FL (1 in every 1,187), and Fayetteville, NC (1 in every 1,257 ).

Punta Gorda has a median listing price of $385,000 and a median time on the market of 93 days. In Fayetteville, the median listing price is $289,000 and the median time on the market is 71 days.

"The story with these metros is the ancillary costs of homeownership," says Berner. "New Jersey has high property tax rates, and Florida has high insurance and HOA costs. Fayetteville, NC, was a metro that appreciated sharply during the post-pandemic buying frenzy as buyers sought out affordable locations, so the increased property values could be resulting in increased property tax bills that are hindering mortgage payments."

Rounding out the top five were Lakeland, FL (1 in every 1,262), and Vallejo, CA (1 in every 1,287).

The median listing price in Lakeland is $335,000, which is $230,000 less than Vallejo's $565,000.

The median time on the market was 91 days in Lakeland and 67 days in Vallejo.

Two of the cities in the top five were in Florida.

"In Florida, a lot of foreclosures are happening because the cost of owning a home has jumped fast," real estate agent and investor Ron Myers, of Ron Buys Florida Homes, tells Realtor.com. "Property taxes are up, and in some cities, insurance premiums have doubled. Once homeowners fall behind, it’s hard to catch back up."