ATTOM’s latest foreclosure market report dropped last month, and the numbers tell a clear story: the pipeline is growing. Q1 2026 saw 118,727 properties with foreclosure filings across the U.S. — a 26% increase from the same period last year and a 6% bump from Q4 2025.
For property preservation vendors, this isn’t just a headline. It’s a shift in workload, and it’s already showing up in the field.
The Numbers Behind the Surge
Foreclosure starts — meaning new properties entering the pipeline — hit 82,631 in Q1 2026. That’s up 20% year over year. But the real number to watch is bank repossessions (REOs), which climbed 45% compared to Q1 2025. Lenders took back 14,020 properties during the quarter.
March alone accounted for 45,921 filings, running 28% above March 2025. The trend line has been moving in one direction for eleven straight months of annual increases.
One positive data point for vendors: the average foreclosure timeline dropped to 577 days, down 14% from a year ago. Faster timelines mean properties are moving through the system quicker, which translates to more consistent work order flow rather than long gaps between initial secures and final disposition.
Where the Volume Is Concentrated
Texas led the country with 10,617 foreclosure starts in Q1. Florida came in second at 10,099, followed by California (7,985), Georgia (4,356), and New York (3,886).
The REO growth by state is even more telling. Florida saw REOs jump from 487 in Q1 2025 to 1,014 in Q1 2026 — more than doubling. Colorado went from 99 to 321, Alabama from 153 to 355, and Washington from 104 to 224. These are the markets where vendor demand is ramping up fast.
What This Means for Vendors on the Ground
A 45% REO increase means more initial secures, more recurring grass cuts, more debris removals, and more inspection volume coming through the national platforms. Vendors who are staffed and ready will pick up the work. Those who aren’t will watch it go to someone else.
Here’s what to focus on right now:
Lock in your subcontractor capacity. If you’re relying on the same two or three crews, start building your bench now. When volume spikes, the vendors who can turn work orders around in 24-48 hours will get priority from the nationals.
Tighten up your photo documentation. More volume means more QC reviews. Chargebacks eat into margins fast, and nationals are getting stricter. Make sure every job has clean before, during, and after photos that match the work order requirements exactly.
Watch the bid opportunities. REO properties often need more than standard preservation work — bigger debris removals, tree trimming, and sometimes repairs to get them market-ready. Bidding accurately and quickly on these jobs is where the real margin lives.
Consider expanding your territory. If you’re only covering a few counties, the rising volume in your state might justify adding coverage areas. More geographic reach means more work orders hitting your queue.
Industry Consolidation Adds Another Layer
Worth noting: Stewart Information Services closed its $330 million acquisition of MCS’s mortgage services division earlier this year. When a title company with Stewart’s resources backs a national preservation platform, it signals that institutional money sees long-term growth in this space. For field vendors, the practical impact is that platform expectations around technology, reporting, and turnaround times will likely keep tightening.
The foreclosure numbers are normalizing, not crashing. We’re still well below 2008-2012 levels, but the steady upward trend creates real opportunity for preservation vendors who are positioned to handle the work. At Ridgestone Services, we’re watching these numbers closely and scaling our operations to stay ahead of the curve.