According to ATTOM, foreclosure filings reached more than 35,000 properties in November, marking the ninth straight month of year over year increases. The Mortgage Bankers Association also reported that the share of loans in foreclosure rose to 0.50 percent in Q3. These are still modest numbers by historical standards, but the trend line matters more than the headline count. What was an ultra quiet pipeline is slowly filling again.
And that means something different for every corner of the industry.
What Rising Foreclosures Suggest About 2026
1. A distressed pipeline that grows slowly, not explosively
Every major forecast points to stability rather than a price collapse. Zillow projects home values up about 1 percent in 2026 and existing home sales up more than 4 percent. Redfin calls 2026 the beginning of a multiyear housing reset where incomes start catching up to prices. This environment does not create a flood of REO, but it does support a steady rise in non-performing loans as days on market stretch and borrower cures slow down.
That type of environment places more risk on collateral quality than on macro price shocks.
2. More disorder in loan performance
Serious delinquency rates remain near historic lows, but there are early signs of migration. Loans linger longer in delinquency before resolution. Some of what used to cure through a fast retail sale is now rolling into deeper buckets because inventory sits longer in certain MSAs.
These conditions tend to create selective pockets of distressed inventory rather than a national surge, which makes property level visibility more important than portfolio assumptions.
3. Investors will find opportunity, but only with strong ground truth
More distressed inventory usually means more deal flow for SFR operators, fix and flip buyers, and distressed asset funds. But buying in a stable price environment with rising foreclosure activity is tricky. The risk is not the comp set. The risk is the actual condition of the asset you cannot see yet.
Is it occupied. Is there storm damage. Has vandalism occurred. Are there plumbing or mechanical issues that never made it into a listing. A small oversight at acquisition can turn a discounted buy into a capital drain.
Why Real Time Condition Data Matters More In 2026
When prices remain steady, lenders and investors cannot rely on equity cushions to absorb mistakes. File level visibility becomes the difference between a profitable acquisition and a write down.
That is why the industry is moving toward faster, more standardized property data. Servicers need accurate exterior checks before a foreclosure proceeding. Investors need rapid verification before bidding. Asset managers need interior visibility to model capex and ARV. And risk teams need real time proof that a property’s condition aligns with the reported value.
This shift is exactly where ProxyPics becomes a strategic advantage.
How ProxyPics Supports Foreclosure Workflows And Distressed Asset Strategies
ProxyPics provides nationwide, same day or next day property condition reporting supported by a trained, tiered network of more than 395,000 data collectors. That scale is difficult to replicate and even harder to coordinate without a dedicated platform.
In a market where foreclosure activity is rising and 2026 depends on precision underwriting, ProxyPics helps teams:
1. Validate collateral quickly
Exterior PCRs with geo verified photos give lenders and servicers immediate clarity on occupancy status, visible damage, neighborhood conditions, and overall curb appeal. These reports support pre foreclosure decision making and help eliminate common blind spots when access is limited.
To further reduce valuation risk, ProxyPics AVM + PCR pairs automated valuation insights with a same day or next day Property Condition Report captured on site. This ensures valuation assumptions are grounded in current, verified property conditions rather than averages or outdated data.
Instead of relying on public records, stale MLS photos, or borrower representations, lenders, investors, and asset managers receive real time exterior or interior condition data aligned directly to valuation outputs. This allows teams to pressure test value assumptions, assess loss severity exposure, and move capital with greater confidence.
2. Onboard REO assets with confidence
Full interior and exterior condition reports, panoramic views, and floor plans help asset managers and SFR operators estimate rehab needs and prioritize disposition strategies. They also help risk teams adjust ARV or BPO assumptions using current conditions rather than stale imagery.
3. Evaluate NPL pools accurately
Targeted data collection on select loans helps reveal which assets carry condition-based risk that could impact loss severity. This is essential when buying or selling scratch and dent or non-performing pools where valuation swings depend heavily on real property condition.
4. Scale decisions with verified data
National coverage and rapid deployment create a consistent workflow across markets. Teams no longer wait weeks for inspection windows. They get data within hours when needed, which is crucial for distressed asset markets that move quickly.
The Bottom Line
Foreclosure activity is rising at a controlled but consistent pace. 2026 is shaping up to be a year defined by operational risk rather than price collapse. The players who win will be the ones who use real time condition intelligence to stay ahead of distress instead of reacting to it.
ProxyPics is positioned to support that shift. Faster decisions. Cleaner data. Nationwide reach. Same day or next day verified condition insight that keeps teams aligned with what is actually happening at the property level.
If your 2026 strategy involves foreclosure diligence, NPL evaluation, REO onboarding, or acquisition screening, now is the time to equip your workflow with real time field data.
