The American housing market has gone through dramatic changes over the past several years. Home prices surged during the pandemic housing boom, mortgage rates climbed rapidly, and many buyers felt completely priced out of the market.

But in 2026, something different is beginning to happen in certain parts of the country.

Foreclosure activity is slowly starting to rise again in several states. While the numbers are still far below the levels seen during the 2008 housing crisis, foreclosure filings are increasing in specific housing markets where affordability pressures have become too difficult for some homeowners.

For buyers and investors watching closely, this trend could create new opportunities to purchase homes below traditional market prices.

Here are 10 states where foreclosure activity is rising the fastest in 2026.

10. Nevada

Nevada has historically been one of the most volatile housing markets in the United States. During the last housing crash, cities like Las Vegas saw some of the highest foreclosure rates in the country.

In 2026, foreclosure filings have started rising again in parts of Clark County, where rapid home price growth pushed housing costs beyond what many local buyers could comfortably afford.

As mortgage payments reset and living expenses continue to rise, more distressed properties are slowly returning to the market.

9. Illinois

Illinois has quietly become one of the early states where foreclosure activity is beginning to climb again.

Several counties around Chicago and central Illinois have seen an increase in distressed property filings over the past year. In neighborhoods where home values rose quickly during the pandemic housing boom, some homeowners are now struggling with higher mortgage payments, property taxes, and insurance costs.

Historically, Illinois is often one of the first places where distressed housing inventory begins appearing during housing market shifts.

8. Florida

Florida has been one of the hottest housing markets in the country over the past several years. Rapid population growth pushed home prices higher across cities like Tampa, Orlando, and Miami.

However, rising insurance costs, property taxes, and HOA fees have started putting pressure on homeowners in some areas.

When housing markets cool after rapid price growth, distressed properties often begin appearing again, sometimes selling below recent peak prices.

7. New Jersey

New Jersey has one of the longest foreclosure processes in the United States, which means foreclosure trends can take longer to develop.

Recent housing reports show foreclosure filings increasing in several counties across the state as the housing market adjusts to higher interest rates.

In areas close to New York City, home prices rose dramatically over the past few years. That rapid appreciation has left some homeowners financially stretched, increasing the risk of distressed properties entering the market.

6. Ohio

Ohio has long been a state where distressed property markets appear earlier than in many other parts of the country.

Cities like Cleveland, Dayton, and Toledo have historically seen foreclosure activity fluctuate alongside economic shifts and housing affordability.

Because home prices remain relatively affordable compared to coastal states, foreclosure listings in Ohio can sometimes attract both investors and first time buyers searching for lower priced homes.

How to Find Foreclosure Listings in Your Area

If you are interested in buying a foreclosure home, one of the biggest challenges is simply finding properties before they appear on traditional real estate websites.

Many distressed homes first appear through foreclosure auctions, bank owned property listings, or pre foreclosure filings that are not always easy to track through standard home search platforms.

One of the tools many real estate investors use is Foreclosure.com, a platform that aggregates foreclosure listings from multiple sources across the United States.

The site tracks a wide range of distressed property opportunities including:

• foreclosure auctions
• bank owned homes
• pre foreclosure listings
• government owned properties

Because the platform collects listings from many different foreclosure sources, it can often provide a broader view of distressed properties that may not yet appear on traditional home search sites.

If you want to explore foreclosure homes currently available in your area, you can browse listings here.

For buyers and investors looking for potential real estate deals, monitoring foreclosure listings can sometimes reveal properties selling below typical market prices.

Foreclosure.com
A simple way to find a home. Better Data Better Analytics!

5. Texas

Texas has experienced one of the fastest housing expansions in the country during the past decade.

Cities like Austin, Dallas, Houston, and San Antonio saw massive population growth, pushing home prices significantly higher during the pandemic housing boom.

But rapid price growth can also lead to market corrections. As interest rates and property taxes rise, foreclosure filings have begun increasing in certain parts of the state.

Texas also has a relatively fast foreclosure process, which means distressed properties can move through the system quickly.

4. South Carolina

South Carolina has become one of the fastest growing states in the southeastern United States.

Cities like Charleston, Greenville, and Columbia have seen strong population growth as retirees and remote workers move to the region seeking lower costs of living.

However, rapid population growth combined with rising home prices can create financial pressure for homeowners. Foreclosure filings have begun increasing in several counties as the housing market adjusts.

3. New York

New York may surprise many people on this list.

While New York City is known for extremely high real estate prices, many parts of upstate New York have very different housing markets.

Several counties across the region have seen foreclosure activity gradually increase as housing affordability challenges grow and wages struggle to keep up with rising housing costs.

Because foreclosure timelines in New York are long, these trends often develop slowly but can create opportunities for buyers once distressed properties begin entering the market.

2. California

California remains one of the most expensive housing markets in the United States, but it is also historically one of the most sensitive to housing market shifts.

During the last housing downturn, California experienced some of the highest foreclosure rates in the country.

Recent reports show foreclosure activity beginning to rise again in several counties as extremely high home prices and rising mortgage costs place pressure on homeowners who purchased during the peak of the market.

1. Delaware

The state currently showing one of the highest foreclosure rates relative to its housing inventory is Delaware.

Because Delaware is a small state with limited housing supply, even a moderate increase in foreclosure filings can cause the state to rank among the highest foreclosure rates in the country.

For buyers watching distressed property markets closely, smaller states like Delaware sometimes appear near the top of foreclosure statistics simply because small inventory changes have a larger impact.

What Rising Foreclosures Mean for Buyers

Foreclosures are not happening evenly across the United States. Some housing markets remain extremely competitive, while others are beginning to show signs of stress as borrowing costs and ownership expenses continue rising.

For buyers who understand how foreclosure markets work, these shifts can sometimes create opportunities to purchase homes below traditional market prices.

If you want to explore foreclosure listings in your area, you can browse available properties here.

This platform tracks foreclosure auctions, bank owned homes, and pre foreclosure listings across multiple housing markets.