States with the most foreclosure activity right now are beginning to stand out as housing stress resurfaces across parts of the U.S. According to recent data from foreclosure analytics firm ATTOM, which tracks default notices, scheduled auctions, and bank repossessions, foreclosure filings have been rising steadily into early 2026. While national foreclosure levels remain below pre-financial-crisis highs, certain states are seeing significantly higher activity relative to the size of their housing markets.
At the top of the list is Delaware, a small state where foreclosure filings represent a disproportionately high share of total housing units. Delaware’s position highlights an important trend: foreclosure “hot spots” are not always the largest real-estate markets, but often smaller states where economic pressure shows up faster in default and auction data. Investors watching foreclosure rates rather than raw listing counts have increasingly turned their attention here.
Nevada and New Jersey also rank among the states with the highest foreclosure activity. Nevada’s housing market, long known for boom-and-bust cycles, continues to show elevated levels of distressed properties as higher interest rates and affordability challenges weigh on homeowners. New Jersey, meanwhile, consistently reports one of the highest foreclosure rates per housing unit in the country, driven in part by high property taxes and elevated monthly ownership costs.
Rounding out the list is Florida, which stands out both for its foreclosure rate and sheer volume of filings. Florida frequently leads the nation in total foreclosure starts, reflecting its massive housing stock and rapid population growth over the past decade. Across multiple reports from late 2025 into early 2026, Delaware, Nevada, New Jersey, and Florida have repeatedly topped ATTOM’s foreclosure rankings, signaling where distressed inventory is most concentrated—and where foreclosure buyers and investors are likely to find the most activity right now.
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