Foreclosure filings rose 21%, starts climbed 18%, and bank repossessions jumped 33% in the first half of 2026.
Legal inquiries hit their highest level since 2020, pointing to more filings over the next two quarters.
But the growing distress is creating negotiation before forced sales.
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Pandemic-era buyers are turning to short sales as lost equity traps them in weakening markets.
Bankrupt retailers are rejecting leases, while lenders restructured a $1.8B office loan after two defaults.
Here’s where stress is becoming foreclosure inventory, discounted sales, lower rents, and reworked debt:
🏚️ Foreclosure Filings Jump 21%
⚖️ Foreclosure Inquiries Hit 2020 High
📉 Short Sales Rise as Equity Shrinks
🏬 Retail Bankruptcies Force Lease Talks
🏢 $1.8B Office Loan Avoids Foreclosure
Video of the Week: Midwest Value, Growth & Distress in 2026
Chart of the Week: CMBS loans in special servicing increased in June to $66.76 billion
Podcast of the Week: The Housing Market Just Took a Strange Turn
Foreclosure Filings Rise 21% in First Half
U.S. foreclosure starts climbed 18% and bank repossessions rose 33%, while Idaho, Colorado, and Georgia recorded some of the sharpest annual increases.
$1.8B Office Loan Pulled Back From the Brink
Columbia Property Trust restructured debt on a seven-building portfolio after two defaults, canceling foreclosures and extending the loan to 2028.
Video of the week

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