🚨 Servicers Can't Clear What's Coming
Relief programs collapsed. Hidden inventory stacking. Nobody priced this in.
Foreclosure filings surged 16% in 2025 as lender relief programs finally collapsed.
Florida and New Jersey are getting slammed with distressed inventory that’s already dragging down prices.
At the same time, existing home sales cratered to 1995 levels because sellers are pulling listings rather than take a loss.
REO properties are stacking up faster than special servicers can clear them, while national inventory hit just 3.4 months of supply.
The sellers who yanked listings can’t move properties at current prices and can’t afford to hold much longer.
When that shadow inventory breaks loose in spring or summer, it hits a market already drowning in foreclosures and bank-owned homes.
In this edition of the AltReports:
📉 Foreclosure Filings Explode 16% Nationwide
🏚️ Home Sales Crater to 1995 Lows
💰 $200B Mortgage Rescue Plan Falls Flat
🔨 Flip Crisis: Profits Vanish, Foreclosures Coming
🤝 Merger Frenzy Forces CRE Portfolio Liquidation
📊 Sales Beat Forecast, Distressed Deals Disappear
Video of the Week: Top 10 Florida Cities That WILL CRASH in 2026
Chart of the Week: U.S. Multifamily Demand Hit an All-Time High in 2025
Podcast of the Week: How to Retire with the Fewest Rentals Possible in 2026
Foreclosure Filings Surge 16% as Relief Efforts Collapse
Foreclosure filings jumped 16% in 2025, proving lenders’ relief efforts are falling apart.
That spike is flooding the market with distressed properties and finally cooling prices in hotspots like Florida and New Jersey.
💡Investor Takeaway: Focus on Florida and New Jersey markets where foreclosure activity is highest.
Existing Home Sales Plunge to 1995 Lows as Sellers Yank Listings
Home resales hit their weakest level since 1995 as would-be sellers yank listings off the market and buyers are left stranded.
This pullback is freezing prices and building up a stash of hidden inventory, priming a midyear glut.
💡Investor Takeaway: Prepare for increased inventory in spring and summer when sellers who’ve been waiting may finally list their properties.
$200B Mortgage Buy Won’t Move the Needle
The recent plan to buy $200B in mortgages barely made a difference to interest rates.
With the Fed still playing hardball, money stays tight and loan defaults are primed to rise.
💡Investor Takeaway: Research distressed mortgage pools now before prices spike.
Fix-and-Flip Poised for 2026 Breakout
House flippers are getting hammered as high rates, cooling prices and scarce deals turn profits into losses.
In 2026, a flood of foreclosures and bank-owned homes paired with a Fed rate cut and looser lending will crash into the market.
💡Investor Takeaway: Line up your financing and a reliable contractor team now.
2026 Merger Mania Is Breaking Up CRE Portfolios
Big real estate firms are gearing up for a 2026 merger binge, and their existing property portfolios are about to come apart at the seams.
This scramble has consultants racing to cut underperformers and rebalance holdings as companies chase massive deals.
💡Investor Takeaway: Research which real estate companies are merger targets. They often sell underperforming properties quickly before deals close.
Existing Home Sales Outpace Forecast, Supply Drought Pinches Distressed Deals
The market’s still broken – sky-high mortgage rates are gutting affordability, yet existing-home sales closed 2025 at a 5.3 million pace, eclipsing the 5.1 million forecast.
That unexpected strength is draining inventory to just a 3.4-month supply and ratcheting up prices across the board.
💡Investor Takeaway: Look at smaller markets and rental property portfolios where tight inventory hasn’t pushed prices as high as major metros.