Foreclosure filings across the United States have now risen year-over-year for twelve consecutive months, according to the latest data from ATTOM. In February 2026, 38,840 properties carried a foreclosure filing—up 20 percent from the same month a year ago. Foreclosure starts climbed 14 percent annually to 25,928, while completed foreclosures surged 35 percent to 4,077. For property preservation companies and field vendors, this sustained upward trajectory signals a growing volume of work orders, tighter timelines, and increased scrutiny from servicers.
The Numbers Behind the Trend
January 2026 set the pace with 40,534 properties in some stage of foreclosure—a 32 percent jump from the prior year. Foreclosure starts rose 26 percent, and completed foreclosures spiked nearly 59 percent. While February’s month-over-month totals dipped slightly, the year-over-year pattern remains firmly upward.
Geographically, the activity is concentrated in states that already carry heavy REO and default-servicing workloads. Texas led the nation with 3,390 foreclosure starts in February, followed by Florida (3,250), California (2,440), Georgia (1,331), and Indiana (1,197). Among metro areas, Lakeland, FL, posted the highest foreclosure rate at one filing per 1,075 housing units, with Punta Gorda, FL, Indianapolis, IN, Evansville, IN, and Columbia, SC, rounding out the top five.
Industry Consolidation Adds Another Layer
The growing pipeline coincides with significant consolidation at the top of the industry. Stewart Information Services closed its $330 million acquisition of Mortgage Contracting Services (MCS) in December 2025, absorbing one of the largest property preservation platforms serving top-30 mortgage servicers. MCS’s mortgage services division—covering property preservation, inspections, and asset management—now operates under the Stewart umbrella, while MCS retains its commercial, residential, and government services lines.
For vendors in the field, this consolidation often means changes to vendor management platforms, updated compliance requirements, and shifts in how work orders flow. Staying current on platform updates and maintaining strong profiles across multiple national service providers has never been more important.
What Vendors Should Do Now
1. Audit your capacity. Twelve straight months of rising foreclosure activity means preservation work orders will continue climbing through Q2 and beyond. If you are operating at or near capacity, now is the time to onboard reliable subcontractors, not when the rush order hits at 4 p.m. on a Friday.
2. Tighten your QC process. With more volume comes more chargebacks and more scrutiny on photo documentation. Review your inspection and completion photo standards. Make sure every property gets timestamped, geotagged photos that match the work order requirements to the letter.
3. Watch the high-volume states. If you service properties in Texas, Florida, California, Georgia, or Indiana, expect a disproportionate share of new orders. Vendors with coverage in secondary metros like Lakeland, Indianapolis, or Columbia should be positioned to capture additional work.
4. Stay ahead of platform changes. The Stewart-MCS integration is still unfolding. Keep a close eye on communications from any national service provider you work with. Requirements for onboarding documentation, insurance minimums, and technology platform access could shift with minimal notice.
5. Lock in pricing now. Rising volume gives vendors more leverage in bid negotiations. If your current allowables no longer cover material and labor costs, use the increased demand as a basis for conversations with your servicer contacts about rate adjustments.
At Ridgestone Services, we track these market shifts closely so we can deliver consistent, compliant property preservation work—regardless of how fast the pipeline grows. Staying ahead of the data is how we protect the assets our clients depend on.