For years, foreclosure rates have remained fairly steady. But recent data shows that this is no longer the case. A combination of pandemic-era forbearance, FHA loss-mitigation subsidies, and government-backed mortgage relief artificially kept millions of distressed borrowers in their homes — holding back what one analyst called “the flood behind the dam.”
That dam appears to be breaking or at least showing a few cracks. The Trump administration has wound down the Biden-era federal foreclosure protection program that allowed struggling homeowners to reduce or temporarily cover their mortgage payments.
📐119K properties received foreclosure notices in Q1 2026 (ATTOM)
⚙️Year-over-year foreclosure filings increased 26% in Q1 2026 (ATTOM)
⚒️Price declines in 30 out of 50 U.S. housing markets in January 2026 (Realtor.com)
These are not the catastrophic numbers of 2008 since loan-to-value ratios are much lower overall. But the trajectory appears to be upward. And this presents an opportunity for plugged-in investors to find new deals.
Where Foreclosures Are Hitting Hardest
Unlike the 2008 crisis, which was concentrated in overleveraged Sunbelt markets, today’s foreclosures are showing up across the country.
Indiana--> Highest rate in the nation, with 1 in every 739 housing units receiving a filing in Q1 2026
South Carolina--> Second-highest filing rate nationally, with elevated activity across multiple counties
Florida--> Third-highest rate, with high property tax and insurance rates exacerbating the problem
National Average--> 1 in every 1,211 housing units received a foreclosure filing in Q1 2026
The Individual Investor’s Opportunity
But what does all this data mean for YOU? With more distressed properties hitting the market, you’ll have more choices for a solid fix-and-flip deal. Of course, you’ll need to pay attention to price fluctuations in your market and be realistic about your ARVs. With more foreclosures in the mix, that is putting downward pressure on housing prices. Be smart about bidding and run your numbers before signing on the dotted line.
You may be wondering, now, just how to find a good foreclosure.
01. Build relationships with foreclosure attorneys, trustees, and court staff
Often, it’s not what you know but who you know. Pre-foreclosure filings and Notices of Default are public record, but the real edge goes to investors who learn about distressed situations before they’re widely known. Attorneys handling estate sales, bankruptcies, and divorces often know of motivated sellers weeks ahead of any public filing. So start networking!
02. Focus sourcing on FHA-heavy submarkets
The delinquency surge is concentrated in FHA-backed loans, which allow higher debt ratios and smaller down payments. Focus on these areas to find the most distressed inventory. County records and ATTOM market reports can help you identify these zones.
03. Show up consistently at courthouse auctions and online platforms
Look for foreclosures online and in person. Some auctions require you to show up on the courthouse steps, while others allow digital bidding. Platforms like Foreclosure.com and Connected Investors make searching easy with geographic filters and property-specific data.
04. Secure fast, flexible capital before you need it
This is where Navigator Private Capital comes in. Conventional financing timelines often don’t work at courthouse steps or in competitive pre-foreclosure negotiations. Establishing a private lending relationship — with clear terms, an understood draw process, and a lender who knows your strategy — gives you the credibility to execute when the right deal pops up.
We Are In Your Corner
For the individual investor who has been patient, conditions are shifting in your favor. Take advantage of new opportunities by setting up your financing now. Reach out to your NavCap loan officer to discuss your options or call 888.444.3160 to be put in touch.