Top 10 U.S. States with the Largest Annual Increase in REO’s in the First Half of 2026
Industry Update
July 31, 2026
Source: ATTOM
According to ATTOM’s just released Mid-Year U.S. Foreclosure Market Report, a total of 227,548 U.S. properties had foreclosure filings, including default notices, scheduled auctions, and bank repossessions, during the first six months of 2026. That figure was up 21 percent from the first half of 2025 and up 28 percent from the same period in 2024.
ATTOM’s latest foreclosure market analysis reveals that nationwide, 0.16 percent of all housing units, or one in every 632, had a foreclosure filing in the first half of 2026. The states with the worst foreclosure rates during the first six months of 2026 were Florida (0.27 percent of housing units with a foreclosure filing), South Carolina (0.26 percent), Indiana (0.25 percent), Delaware (0.25 percent), and Illinois (0.23 percent).
The report notes that a total of 27,983 U.S. properties were repossessed by lenders (REO) in the first half of 2026, up 33 percent from the same period in 2025, but still 26 percent below the level recorded in the first half of 2020.
The analysis also indicates that states with the highest number of REO properties in the first half of 2026 were Texas (3,322 REOs); California (2,644 REOs); Florida (2,070 REOs); Pennsylvania (1,893 REOs); and Illinois (1,543 REOs).
In this post, we take a closer look at the states that posted the largest year-over-year increases in lender repossessions (REOs) during the first half of 2026. Among states with at least 500 REO properties in the first half of 2026, Colorado recorded the largest annual increase, with REOs rising 176.7 percent from 215 in the first half of 2025 to 595 in the first half of 2026. Florida followed (up 83.8 percent from 1,126 to 2,070), followed by Minnesota (up 83.1 percent, from 326 to 597), Alabama (up 51.1 percent, from 470 to 710), Texas (up 50.5 percent, from 2,207 to 3,322), California (up 47.0 percent, from 1,799 to 2,644), Arizona (up 46.4 percent, from 364 to 533), Virginia (up 44.3 percent, from 386 to 557), North Carolina (up 32.8 percent, from 671 to 891), and Pennsylvania (up 29.6 percent, from 1,461 to 1,893).
For full report, please click the source link above.