Over the past several months, foreclosure activity across the United States has continued trending upward. While we are nowhere near 2008-style levels, the data clearly shows that distressed property activity is steadily increasing again. For real estate agents, BPO agents, investors, and REO professionals, this is something worth paying attention to.
According to ATTOM’s latest April 2026 foreclosure report, foreclosure filings rose 18% year-over-year nationwide, with more than 42,000 properties receiving foreclosure filings in April alone. Foreclosure starts also increased 12% from the same period last year, while completed foreclosures (REOs) jumped 42% annually. (HousingWire)
The increase appears tied to several factors happening at the same time:
- Higher mortgage rates
- Rising insurance and property tax costs
- Affordability pressure on homeowners
- Increased consumer debt delinquencies
- The expiration of many pandemic-era loss mitigation programs
The Mortgage Bankers Association reported today that mortgage delinquencies increased again during the first quarter of 2026, with foreclosure inventory also moving higher. (mba.org)
In simple terms, more homeowners are beginning to struggle.
Interestingly, foreclosure activity still remains below pre-pandemic levels nationally, but the trend direction matters. Markets such as Florida, Texas, South Carolina, Delaware, and parts of the Midwest are seeing some of the sharpest increases in foreclosure starts and REO activity. (HousingWire)
For agents who complete Broker Price Opinions (BPOs), occupancy checks, inspections, and valuation work, this is important because distressed inventory often creates increased demand for:
- Exterior BPOs
- Interior BPOs
- Property condition reports
- Occupancy inspections
- REO valuation updates
- QC review work
Historically, valuation volume tends to increase before distressed inventory becomes highly visible to the public. Lenders and servicers start reviewing portfolios, monitoring delinquent assets, and increasing valuation activity long before properties officially become bank-owned.
We are already seeing signs of that shift happening.
At the same time, today’s environment is very different from the 2008 housing crash. Lending standards over the past decade have generally been much stronger, and many homeowners still hold significant equity. This likely limits the probability of a full-scale foreclosure crisis. However, rising affordability pressure and higher carrying costs are clearly beginning to stress portions of the market. (Reuters)
For real estate agents, this creates both challenges and opportunities.
Agents heavily dependent on traditional closings may continue experiencing inconsistent transaction flow if rates remain elevated and buyers stay cautious. But agents involved in valuation work, BPOs, inspections, and REO-related services may see continued increases in assignment opportunities throughout 2026.
The key takeaway is simple:
The market is shifting again.
And agents who understand how to operate within the valuation and distressed property side of the business may be better positioned for consistent income during periods of market uncertainty.
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