Foreclosure wave unlocks discounts for seasoned homebuyers

Foreclosures in the U.S. rose to the highest level since 2019 in the first half of 2026, with about 228,000 filings, up 21% year over year. Banks selling foreclosed properties are offering heavy discounts—roughly 27% below typical market value—but these homes often come ‘as‑is’ and require repairs, with limited opportunities to tour and longer closing timelines. While the surge signals normalization after pandemic-era relief, foreclosure activity remains well below 2008 levels and is concentrated in lower-cost areas. Experienced buyers and investors are the primary bidders, as some distressed households sell to avoid foreclosure and lenders seek quick turnovers.