06/15/2026
History repeating itself. We as NRBA brokers are here and ready to help with our experience and expertise to help
THE MAY FORECLOSURE NUMBERS ARE IN!
THE DISTRESS CYCLE ISN'T COMING... IT'S ALREADY HERE.
ATTOM's latest foreclosure report showed May foreclosure activity was down slightly from April. Some will look at that and conclude the market is stabilizing - I see it differently.
There has always been a slight seasonal slowdown in foreclosure filings as we move into the summer months, and it is not necessarily a reflection of market conditions.
Historically, many lenders, servicers, law firms, courts, and asset management companies begin operating with reduced staffing levels due to vacation schedules, which naturally slows the flow of paperwork, approvals, referrals, and new assignments. We see this almost every year.
In fact, July has traditionally been one of the slowest months of the year for new REO assignments. That doesn't mean the market is improving. It simply means the operational pipeline tends to move a little slower during the summer.
When you look beyond normal seasonal fluctuations, the larger trend remains unchanged. Foreclosure activity continues to run well ahead of last year's levels, with foreclosure starts remaining elevated, and distressed property activity continues to build. The cycle is still moving in the same direction as it has been for the past several months.
Foreclosure starts are up.
REO activity is up.
Foreclosure filings continue to trend higher year-over-year.
That's the story.
Seasonal fluctuations happen every year. A small monthly decline isn't unusual. What matters is the longer-term trend, and that trend has now been pointing in the same direction for many months.
We've been talking about this inside the NRBA membership for quite some time. Rising insurance costs, property taxes, HOA fees, affordability issues, loan modification failures, payment shocks, and growing consumer debt are creating financial pressure on homeowners across the country.
The result?
More distressed inventory - Not just REO -Not just foreclosures.
Short sales.
Coordinated sales.
Pre-foreclosure opportunities.
Loss mitigation solutions.
The professionals who understand distressed property today will have a significant advantage over the next several years.
That means many of tomorrow's foreclosure files can become today's short sale or coordinated sale opportunity.
Leading states in foreclosure starts in May 2026 were Texas (3,590 foreclosure starts); followed by Florida (3,315 foreclosure starts); California (2,530 foreclosure starts); Georgia (1,161 foreclosure starts); and Illinois (1,150 foreclosure starts).
Additionally, 1,848,000 properties are now past due but not yet in foreclosure. With 577,000 of them already being “seriously delinquent” and now headed towards foreclosure.
The market is changing.
The question is - who the winners and losers will be?
The winners will be the agents and brokers who recognize it and learn how to profit from it – ahead of everyone else.
