U.S. Foreclosures Reach Highest Level Since 2019 as Bargain Buyers Return

Foreclosure activity in the United States has climbed to its highest level since 2019, creating new opportunities for homebuyers seeking discounted properties, Claire Boston reported for Yahoo Finance.

Foreclosed homes are attracting bargain hunters as foreclosure activity rises to its highest level since 2019.

According to the report, the median foreclosed home sells for about 27% below the typical market value, reflecting lenders' preference for disposing of repossessed properties quickly.

Most foreclosed homes are sold "as is," meaning buyers assume responsibility for repairs and renovations.

With home prices remaining near record highs, such properties have become increasingly attractive to experienced buyers willing to take on renovation projects.

"There are a lot of risks and a lot of complications with buying these things, so it's not for everybody," Realtor.com Senior Economist Joel Berner told Yahoo Finance. "But it's becoming more of an option — it's a larger share of the market."

During the first half of 2026, approximately 228,000 U.S. homes received foreclosure filings—including default notices, scheduled auctions, or bank repossessions—representing a 21% increase from a year earlier and the highest level since 2019.

Homes owned and listed for sale by lenders accounted for 1.3% of all listings in April, the highest share for that month since 2020, according to Realtor.com.

Despite the increase, foreclosure rates remain well below the levels recorded during the 2008 subprime mortgage crisis. Industry experts also note that the foreclosure process can take months or even years before a property is ultimately sold.