Zombie Foreclosures Rise in 38 US States

Zombie foreclosures, where homeowners abandon properties before bank repossession, increased in 38 US states in early 2026.

Zombie Foreclosures Rise in 38 US States

Image: zerohedge.com

According to a report from ATTOM Data Solutions, zombie foreclosures—properties where homeowners have vacated before the bank completes repossession—rose in 38 US states during the first quarter of 2026. The report, released on May 20, 2026, analyzed foreclosure data across the country.

Nationally, zombie foreclosures accounted for 1.2% of all residential properties in foreclosure, up from 0.9% in the same period last year. States with the highest rates included Florida, New York, and Illinois, each seeing increases of over 15% compared to Q1 2025.

ATTOM's report attributed the rise to lingering effects of the pandemic-era mortgage forbearance programs ending and rising property taxes. 'Many homeowners are still struggling to catch up on payments,' said Todd Teta, chief product officer at ATTOM. 'When they leave before foreclosure is finalized, it creates blight in neighborhoods.'

The total number of zombie foreclosures nationwide was approximately 7,200 properties, up from 6,100 in Q1 2025. However, this remains below the peak of 12,000 seen in 2019.

❓ Frequently Asked Questions

What is a zombie foreclosure?

A zombie foreclosure occurs when a homeowner abandons a property before the bank completes the foreclosure process, leaving the property vacant and often in disrepair.

Which states saw the biggest increase in zombie foreclosures?

Florida, New York, and Illinois had the highest increases, each rising over 15% in Q1 2026 compared to Q1 2025.

Why are zombie foreclosures rising now?

ATTOM Data Solutions attributes the rise to the end of pandemic-era mortgage forbearance programs and increasing property taxes, which strain homeowners financially.

📰 Source:
zerohedge.com →
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