US Home Foreclosures Rise 26% in Q1 2026, Indiana Hit Hardest

Home foreclosures in the U.S. rose 26% from a year earlier as inflation and rising costs caught up with homeowners.

Indiana suffered the worst, with one foreclosure filing for every 739 housing units in the first quarter of 2026, according to property data firm ATTOM. That marked nearly two-thirds higher than the national rate of one in every 1,211 houses facing foreclosure during the period.

Data released in April showed red states bearing the brunt of the affordability crisis, with economic concerns weighing on voters and policymakers ahead of the 2026 midterm elections.

The three states with the highest foreclosure rates at the start of 2026 all backed President Donald Trump in the 2024 election. South Carolina ranked second with one filing per 743 properties, followed by Florida at one per 750 housing units.

Foreclosure activity climbed across the country but stayed far below 2008 housing crisis levels. Democrats highlighted affordability, inflation and housing costs in campaign messaging before November elections.

A total of 118,727 properties received foreclosure filings in the first quarter of 2026, up 6% from the prior quarter and 26% from a year before. March alone saw 45,921 filings, a rise of 18% from February and 28% from March 2025.

More homes entered foreclosure, with 82,631 properties starting the process, up 20% year over year. Lenders repossessed 14,020 properties, a 45% annual increase.

Blue states like Delaware and Illinois also posted high rates, showing the problem spans party lines. Among major metro areas, Cleveland, Ohio; Jacksonville, Florida; and Indianapolis, Indiana topped the list for foreclosure rates.

Spiking foreclosures coincided with broader housing strains. Experts pointed to rising mortgage rates, higher living costs and homeownership expenses that boosted monthly payments and strained some owners.

The average 30-year fixed mortgage rate hit 6.37% for the week ending May 7, up from 5.98% in late February.

ATTOM CEO Rob Barber said foreclosure levels remained below housing crisis peaks, but the uptick signaled growing financial pressure on homeowners.

The data indicated an overall stable housing market despite persistent affordability issues for some.