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Foreclosure auctions climb again in Q2 2026, FHA loans lead
Completed auctions reached 66% of Q1 2020 levels in Q2 2026, and loans originated in 2022 or later made up 45% of completed auctions.
Foreclosure auction activity rose again in the second quarter of 2026, according to Auction.com data cited by HousingWire. Completed foreclosure auctions came in at 66% of first-quarter 2020 levels, up 23% year over year, while scheduled auctions increased to 71% of Q1 2020 levels, up 13% annually.
HousingWire reports that FHA-insured loans and mortgages originated after the COVID-19 housing boom were a major driver of the quarter’s activity. It said FHA loans reached 95% of pre-pandemic levels, up 47% year over year, and that 2022+ loan vintages accounted for 45% of all completed foreclosure auctions during the quarter, the largest share among the vintages analyzed.
The report also found activity was strongest among government-backed loans. Completed auctions involving VA-insured loans reached 106% of Q1 2020 levels, up 14% from a year earlier, and conventional loans backed by Fannie Mae and Freddie Mac were at 68% of Q1 2020 levels, up 27% annually.
HousingWire adds that both scheduled and completed foreclosure auction volumes have increased annually for six consecutive quarters. It said bank-owned, or real estate-owned (REO), auction volume fell 3% from the first quarter but remained 11% higher than a year earlier, while buyer demand strengthened across both foreclosure and REO auctions.