Key facts
- Foreclosure auctions rose 25% year-over-year in Q3 2026, reaching a post-pandemic peak.
- FHA-insured loans drove the increase, with their auction volume up 73% and accounting for 43% of total volume.
- Loans originated in 2022 or later represented 46% of foreclosure auction activity.
- REO auction volume increased 18% year-over-year.
- The foreclosure auction sales rate was 45.5% in Q3, down 5% from Q2 but flat year-over-year.
- Foreclosure auction buyers paid an average of 65.3% of estimated retail market value in Q3.
Completed foreclosure auctions in the US surged 25% year-over-year in the third quarter of 2026, reaching the highest quarterly total since the first quarter of 2020, according to Auction.com's Q3 2026 Auction Market Dispatch. This marks the seventh consecutive quarter of annual volume gains. Loans insured by the Federal Housing Administration (FHA) were the primary driver of this increase, with their auction volume rising 73% year-over-year and now representing 43% of all foreclosure auction volume. Mortgages originated in 2022 or later also contributed significantly, accounting for 46% of activity. Real estate-owned (REO) auction volume increased 18% from a year ago. Scheduled volume for the fourth quarter indicates continued growth.