Foreclosures are climbing again
Foreclosure activity in the U.S. has now risen year over year for well over a year, and 2026 is running hotter than 2025. ATTOM counted 227,548 properties with a foreclosure filing in the first half of 2026, up 21% from the same period last year and 28% from two years earlier.
The trend held into late summer. ATTOM’s August 2026 report showed 40,277 properties with filings, up 13% year over year, with completed foreclosures (REOs) up 42%. Lenders repossessed 27,983 properties in the first half alone, a 33% annual jump.
This is not 2008. Most owners hold real equity, and ATTOM’s CEO describes the market as returning to more normal patterns. But for a real estate investor whose loan is coming due, “normal” foreclosure volume is still one too many.
Florida and the Southeast carry the most pressure
Florida posted the nation’s worst foreclosure rate in the first half of 2026, followed by South Carolina, Indiana, Delaware and Illinois. Florida also led the country in foreclosure starts in August, ahead of Texas and California.
| Measure (ATTOM) | Period | Figure |
|---|---|---|
| Properties with filings, U.S. | Aug 2026 | 40,277 (+13% YoY) |
| Properties with filings, U.S. | H1 2026 | 227,548 (+21% YoY) |
| Foreclosure starts, U.S. | H1 2026 | 164,566 (+18% YoY) |
| Completed foreclosures (REO), U.S. | H1 2026 | 27,983 (+33% YoY) |
| Foreclosure starts, Florida | Aug 2026 | 3,189 (most of any state) |
| Fastest-rising states, filings | H1 2026 | Idaho +59%, Colorado +57%, Georgia +52% |
For investors in Florida and across the Southeast, the takeaway is simple: lenders are moving faster, and foreclosure timelines in 2026 are the shortest since 2013.
Why rental investors are exposed right now
Most foreclosure headlines are about homeowners, but investors face their own squeeze. The usual trouble isn’t a missed payment at first; it’s a loan that ends before the business plan does.
- Bridge and hard-money maturities. Short-term loans used to buy or renovate come due in 12 to 24 months. If the property isn’t sold or refinanced by then, default follows fast.
- Higher-for-longer rates. Many investors bought expecting rates to fall below 6% in 2026. That hasn’t fully happened, so the planned exit refinance looks different on paper.
- Rising costs. Insurance and property taxes, especially in Florida, cut into cash flow and make some properties look weaker to traditional lenders.
- Income paperwork. Self-employed investors often show low taxable income after write-offs, which can disqualify them for conventional refinances even when the rental performs.
How a DSCR refinance can be the off-ramp
A DSCR (debt service coverage ratio) loan qualifies the property, not the borrower’s tax return. The lender compares the rent to the full monthly payment, including taxes, insurance and any HOA dues.
DSCR = \frac{\text{Monthly rent}}{\text{Principal + interest + taxes + insurance + HOA}}A ratio of 1.0 means the rent covers the payment; many programs want 1.0 to 1.25, and some allow lower with tighter terms. For an investor staring at a bridge maturity, that changes the question from “Does my income qualify?” to “Does the rental pay for itself?”
Refinancing into a long-term DSCR loan can replace a short-term balloon with a 30-year payment, and a cash-out option may free up capital to catch up on reserves or repairs. It works best when there is equity and time, so the refinance has to start well before a default notice turns into an auction date.
Not every property will qualify, and no refinance is guaranteed. But the earlier an investor checks, the more options they have.
How CR Equity AI’s technology speeds the refinance
When a maturity date or default notice is on the calendar, time is the scarcest resource. CR Equity AI built its platform to take days out of the parts of a DSCR refinance that usually stall.
- Instant DSCR check. Enter the property, rent and current loan, and the platform calculates the ratio and estimated payment before anyone pulls paperwork.
- AI pricing and program matching. The system screens the deal against multiple DSCR and investor loan programs to find terms the property can actually support, including options for ratios under 1.0.
- Faster document intake. Leases, rent rolls, insurance and payoff statements are collected and reviewed digitally, so missing items surface on day one, not week three.
- Clean handoff to the lender. Loan data moves in industry-standard formats, cutting re-keying and back-and-forth during underwriting.
- A human on every deal. Technology narrows the options; our team works the file, talks to the borrower and keeps the closing on schedule.
For an investor racing a balloon date, that speed can be the difference between a refinance and a foreclosure filing.
[Rob: confirm feature names, ratio minimums and any turn-time claims before publishing.]
What investors should do now
Start 90 to 120 days before any maturity, and sooner if a payment has already been missed.
- Find the exact maturity date and any extension options in your current note.
- Pull your current lease or a market rent estimate, plus taxes, insurance and HOA.
- Run a DSCR check to see where the property stands.
- Order a payoff statement so the refinance amount is clear.
- If you’ve received a default notice, tell your loan officer right away; it changes the timeline.
Get a DSCR refinance check
If your investment property loan is maturing or you’ve fallen behind, send the deal to deals@crequity.ai or visit crequity.ai. We’ll run the numbers and tell you plainly whether a DSCR refinance fits.
Robert Stewart, Founder and CEO, CR Equity AI Inc.
CR Equity AI Inc., Tallahassee, FL. NMLS #2797309. DSCR loans are for non-owner-occupied investment properties only. This article is for information only and is not a commitment to lend. All loans are subject to credit, property and underwriting approval; rates, terms and programs may change without notice. Borrowers facing foreclosure on a primary residence should contact their servicer or a HUD-approved housing counselor.
Sources
- ATTOM, Mid-Year 2026 U.S. Foreclosure Market Report (July 16, 2026)
- ATTOM, August 2026 U.S. Foreclosure Market Report (Sept. 17, 2026)
- ATTOM, Top 10 states by increase in foreclosure starts, H1 2026
- ATTOM, Top 10 states by increase in REOs, H1 2026
- HousingWire, U.S. foreclosures rise in 2026 midyear ATTOM report
- Newsweek, Housing roundup on rising foreclosures
- Yahoo Finance article provided by Rob (link)