Banks Are Taking More Houses - Foreclosures Jump 42 Percent Year Over Year (Video)

In this 8 October 2026 published video, host Michael Bordenaro talks about the increase in foreclosures and the more realistic home selling prices.

According to the latest data from real estate analytics firm ATTOM, lenders repossessed 5,794 U.S. properties through completed foreclosures (REOs), representing a 42 percent surge year-over-year. While the headline number sounds alarming, housing analysts emphasize that this indicates struggling homeowners are reaching the absolute end of an extended pipeline, rather than signaling a 2008-style housing market crash. Overall foreclosure filings—which bundle together default notices, scheduled auctions, and bank repossessions—totaled 40,277 properties, rising a more modest 13 percent annually.

The spike in bank repossessions reflects a compounding mix of mounting everyday costs, soaring home insurance premiums, and localized property tax hikes that are finally pushing severely delinquent borrowers out of alternative loan restructuring options. 

The concentration of distress is heavily localized, with specific states and metropolitan hubs driving the bulk of bank repossessions. Texas completely outpaced the rest of the nation with 1,835 completed repossessions. California followed in a distant second with 589 REOs, alongside North Carolina (356), Arizona (296), and Alabama (286). South Carolina recorded the worst statewide foreclosure rate in the country, tracking one filing for every 1,547 housing units. Nevada, Florida, Texas, and Maryland rounded out the top five highest-rate states. 

Despite the sharp percentage jumps, industry experts maintain that the broader housing market remains highly resilient. Current foreclosure activity is sitting at roughly 227,000 nationwide year-to-date, compared to the staggering 2.3 million foreclosures witnessed during the peak of the 2008 financial crisis. The average foreclosure timeline has expanded significantly to roughly 563 days due to robust post-pandemic government modification mandates and consumer protections. Furthermore, strict lending standards over the past decade mean the vast majority of current homeowners retain substantial home equity, giving most the flexibility to sell rather than face lender seizure.