The numbers are in, and the trend is unmistakable. According to ATTOM’s latest Foreclosure Market Report, February 2026 marked the twelfth consecutive month of year-over-year increases in foreclosure activity across the United States. That’s a full year of steady, upward momentum — and for property preservation vendors, it’s time to pay attention.
The Numbers Behind the Trend
In February 2026, a total of 38,840 U.S. properties had a foreclosure filing — down 4 percent from January’s seasonal peak, but up 20 percent from a year ago. Foreclosure starts rose 14 percent year-over-year to 25,928, while completed foreclosures (REOs) jumped 35 percent annually to 4,077.
The states seeing the highest REO completions tell a familiar story: Texas led with 453, followed by Michigan (432), Florida (364), California (335), and Pennsylvania (234). If you’re operating in any of these markets, your phone should be ringing more than it was this time last year.
This isn’t a spike — it’s a sustained climb. Foreclosure starts were up 26 percent in January, and completed foreclosures surged nearly 59 percent that same month. The pipeline is growing at every stage, from notices of default through bank-owned inventory.
What’s Driving the Increase
Several factors are converging to push these numbers higher. Elevated interest rates continue to squeeze borrowers who took on adjustable-rate mortgages or stretched to buy during the pandemic boom. Insurance premiums have surged in key markets — particularly Florida and Texas — adding hundreds of dollars per month to housing costs. Rising HOA fees and stagnant wages in some regions compound the problem.
Meanwhile, the post-pandemic forbearance protections have fully expired. Borrowers who were previously shielded are now moving through the default pipeline, and servicers are processing those cases at an accelerating pace.
What This Means for Vendors
For property preservation companies, a 12-month foreclosure uptrend translates directly into increased work volume. More foreclosure starts mean more initial property inspections, more lock changes, and more securing work. More REO completions mean more full preservation scopes — debris removal, winterization, lawn maintenance, and ongoing property upkeep.
Here’s what vendors should be doing right now:
1. Capacity planning. If your crews have been running lean, now’s the time to build your bench. The volume increase is gradual, which gives you time to recruit and train — but don’t wait until you’re turning down work orders.
2. Tighten your QC process. More volume means more opportunity for errors, chargebacks, and re-inspections. Make sure your photo documentation is bulletproof, your timelines are tight, and your submissions are clean. Servicers have zero patience for sloppy work, especially when they have options.
3. Watch the HUD updates. FHA recently published Mortgagee Letter 2026-03, updating requirements for bidding at foreclosure sales and Claims Without Conveyance of Title (CWCOT). There’s also a temporary waiver on Minimum Property Standards elevation requirements running through February 2027. These policy shifts directly affect how properties move through the pipeline and what preservation work is required.
4. Strengthen servicer relationships. Rising volume means servicers need reliable vendors more than ever. If you’ve been delivering consistent, quality work with complete documentation, now is the time to have conversations about expanding your coverage area or taking on additional service lines.
The Bottom Line
Twelve consecutive months of rising foreclosure activity isn’t a blip — it’s a market shift. The property preservation industry is entering a period of sustained growth, and the vendors who prepare now will be the ones capturing that work. Focus on quality, build your capacity, and stay current on regulatory changes.
At Ridgestone Services, we track these trends closely because they directly inform how we operate. Our commitment to 100% photo documentation, 24-hour rush response, and zero tolerance for incomplete work positions us — and our partners — to handle whatever the pipeline sends our way.