🚨 Supply Surges 48%, Demand Hits 6-Year Low
Conversion rate hits 26.6% as mortgage delinquencies accelerate across 43 states
Foreclosure auction volume jumped 48% year over year while the auction sales rate fell to a 23-quarter low, creating the widest supply-demand gap since early pandemic levels.
More scheduled foreclosures are converting to completed auctions, with the roll rate rising to a 14-quarter high of 26.6% as late-stage delinquencies climbed 18.6% year over year.
Properties are moving through the distressed pipeline faster while fewer buyers compete for them at auction.
Credit bid-to-value jumped 351 basis points year over year, widening the spread between what sellers need to recover and what buyers will pay.
Forty-three states posted year-over-year gains in auction volume, led by Florida at 176%, Georgia at 140%, and Texas at 92%.
Here’s where auction supply is concentrating and what today’s pricing tell us about this market:
In this edition of the AltReports:
🏚️ Foreclosure Auctions Surge
📉 Homeowners Fall Behind
🏦 Lenders Tighten, Liquidations Rise
Video of the Week: Here’s How to Profit from Pre-Foreclosures in 2026
Chart of the Week: Foreclosure Auction Demand by State
Podcast of the Week: How to Win at Foreclosure Auctions: Expert Tips & Strategies
Foreclosure Auction Volume Reaches 23-Quarter High
Foreclosure properties brought to auction (BTA) rose 7% quarter over quarter and 48% year over year in Q4 2025, according to Auction.com.
Forty-three states recorded year-over-year increases in foreclosure BTA volume. Texas led with 92% growth, followed by Florida (176%), Georgia (140%), and Illinois (41%).
Late-Stage Mortgage Delinquencies Rise 18.6% Year Over Year
The delinquency rate has risen for five consecutive months, with December marking the highest level since early 2023.
Mortgage delinquencies are now growing faster than other consumer credit categories, signaling specific stress in housing finance.
Mortgage Defects Stabilize as Lenders Face New QC Challenges
As lenders tighten quality control and clean up loan books, fewer files are being kicked down the road.
The bias is shifting from extend-and-pretend toward resolution. In practice, that means more assets moving from servicing limbo into liquidation channels.