These 5 States Have the Worst Foreclosure Rates Right Now (April 2026 Data) #foreclosure

Macro / Market Context

Foreclosure activity is rising alongside broader economic stressors, including:

• “Layoffs are going up”
• “Interest rates might be going up”
• General cost pressure (e.g., “gas…blood pressure going up”)

The presenter frames the data as part of a worsening housing credit cycle, though no formal macro series (e.g., Fed funds, mortgage rates) is cited.

Forecasting / Investing Angle: A 3-Phase Foreclosure Framework

The speaker describes a 3-phase foreclosure process and uses it as an investment framework:

1. Phase 1: Homeowner falls behind → Notice of Default
   • Typically filed about ~3 months after falling behind
2. Phase 2: Auction scheduled
3. Phase 3: If the home doesn’t sell at auction → goes back to the bank as REO (Real Estate Owned)

Key Numbers (April 2026 Foreclosure Activity)

• Total properties in foreclosure process (April 2026): 42,430

  • Up 18% vs. the prior year

• Foreclosure starts (new filings / Phase 1 for April 2026): 28,414

  • Down 6% vs. March
  • Up 12% vs. last year

• Completed foreclosures / REO repossessions (Phase 3) for April 2026: 5,980

  • Up 42% vs. last year
  • Described as “almost 50%” higher
  • Also noted that typical levels are usually ~3,000–4,000/month

Worst Foreclosure “Rates” by State (April 2026)

Top five (as stated):

1. Delaware — ranked #1 (“nation’s worst foreclosure rate”)
2. South Carolina
3. Florida — stated as #3
4. Indiana
5. Illinois

Highest Foreclosure Rates by City (April 2026)

Cities named:

• Lakeland, Florida
• Columbia, South Carolina
• Charleston, South Carolina
• Bakersville, California (spelled as shown in subtitles)
• Cape Coral, Florida

States with the Most Foreclosure Starts (April 2026)

Top states by foreclosure-start counts (as shown/stated):

• Florida: 3,550
• Texas: 3,154
• California: 2,786
• Georgia: 1,47 (likely 1,147 based on context)
• Illinois: 1,366

Timing / Investing Note

• Auction timing highlighted: “first Tuesday of the month”
• Upcoming cycle mentioned: June 6 (first Tuesday)
• “Big big auction week” for Texas/Georgia

Largest Year-over-Year Increases in Foreclosure Starts (Metropolitan Areas)

Cities with the biggest YoY jumps mentioned:

• Pittsburgh, Pennsylvania: 82 → 215
• Austin, Texas: 158 → 396
• Raleigh, North Carolina: 68 → 146
• Lakeland, Florida: 99 → 199
• Akron, Ohio: 60 → 117 (subtitles show “Akran”)

REO Concentration by State (Completed Foreclosure / REO Inventory)

Top states by REO properties (April 2026):

• Texas: 640
• California: 515
• Florida: 381
• Pennsylvania: 346
• Illinois: 340

Investment / Procurement Details (REO and Auctions)

Auction Mechanics / Caution (Explicit)

Key auction rule emphasized:

• Auctions require certified funds (e.g., cashier’s check) for the full winning bid amount
  • Example: if the winning bid reaches $100,000, you need $100,000 in certified funds—“you can’t phone a friend.”

Presenter anecdote about a property that did not sell:

• Opening bid was too high
• Property was described as landlocked
• Result: the home goes back to the bank (REO)

How to Buy REOs (Process-Level)

Where to find REOs:

• HUD HomeStore
• HomePath
• HomeSteps

Financing mentioned:

• Traditional financing
• FHA 203k
• Conventional

Due diligence / recovery expectations:

• “They’re not going to do any repairs,” but you can negotiate
• You can obtain an inspection

Performance Metrics Mentioned (Presenter Activity)

These are activity counts and revenue for the presenter’s business (not investment returns):

• March: ~38 reports, $1,820
• April: 60 reports, $2,643
• May (as of May 24): 120 BPO reports, $6,047

BPO definition given:

• Valuation-style field estimates (photos, comps, occupancy/condition via drive-by)
• Sent to an asset manager

Large batch anecdote:

• Received a “bundle” of 96 properties, completed in ~72 hours (with assistance)

Disclosures / Advice Framing

Homeowner guidance (mortgage delinquency)

The presenter gives guidance to homeowners behind on mortgages (communication and timing), with no explicit “not financial advice” disclaimer shown in the subtitles.

Foreclosure “tips” to borrowers

• Contact the lender immediately; stop avoiding calls; ask about assistance.
• Auction date is not the move-out date.
• Investors may offer “cash for keys.”
• If refused, buyers may pursue court eviction.

Presenters / Sources Mentioned

• Presenter: Ashley Pickkins (referred to as “auction mama,” “your auction mama”)
  • Based in Memphis, Tennessee
• Source/Implied report: “Adam’s report” (used for foreclosure statistics)
• REO listing platforms named: HUD HomeStore, HomePath, HomeSteps