Foreclosures in California Reach New Heights

According to recent data from June 2026, California is experiencing its highest rate of foreclosures since the onset of the coronavirus pandemic.

Last month, the state was ranked ninth for the worst foreclosure rates in the country, with approximately 1 in every 3,205 homes facing foreclosure. The states leading the list were Florida, South Carolina, and Indiana.

Nationally, about 1 in 3,656 housing units are under foreclosure, as per the latest reports.

While the June figures show a slight improvement compared to May’s, foreclosure rates are still higher than they were last year.

In California, around 4,500 of the 14,644,735 homes were foreclosed last month. The counties most affected included Lake, Shasta, Sutter, and Mendocino.

For the first half of this year, a total of 21,543 homes in California were recorded in various stages of foreclosure, placing it as the third highest among all states. This accounted for roughly 9% of the nation’s total of 227,548 foreclosures, following Texas and Florida.

Yet, some experts suggest there’s no immediate cause for concern. Jake Krimmel, a senior economist at Realtor.com, mentioned that the notion of a foreclosure crisis or a housing crash is “far from reality.” He posited that the uptick in foreclosures represents a “normalization” of the market as pandemic-related relief programs like mortgage forgiveness and forbearance have come to an end.

“We’re at a really historic low,” Krimmel added, “and any rally would be interesting.”

Interestingly, these foreclosures could potentially benefit some. Prices of foreclosed homes might drop by around 27%, which may provide opportunities for first-time buyers in California’s high-cost market, especially if the properties are in less-than-perfect condition.

“If a home is listed for 20 to 30 percent less simply because it’s categorized as a foreclosure, that might be a solution for the right buyer,” Krimmel shared.

Additionally, California’s increase in foreclosures is relatively modest when compared to other states. In fact, it had the 12th smallest rise in foreclosures over the last two years, even as mortgage payments surge in states such as Colorado and Wyoming.

According to ATTOM analysts, the decline in nationwide monthly foreclosures can be attributed to fewer foreclosure actions being initiated, while the number of completed foreclosures is still on the rise.