The last time California foreclosures were this high was pre-pandemic, in 2019.

However, if you see this as a signal that hordes of California homeowners are going to lose their homes to foreclosure, just like the last real estate crash, you may be waiting a while.

My trusty spreadsheet reviewed a report from the real estate tracker Attom on who paid their home loans in the first half of 2026. The study tracks all foreclosure activity, from homes just entering the foreclosure process to those lost to a foreclosure sale.

Yes, California had 21,543 homes in various levels of foreclosure activity in the first half. Yes, the last time there were more was seven years ago.

And yes, that’s the third-highest total among the states, accounting for 9% of the nation’s 227,548 — also a seven-year high.

But really, how high is this? Well, the only states with more foreclosure activity were the nation’s two other economic giants and California’s archrivals: Florida at 27,494 and Texas at 22,000.

California’s housing market has plenty of headaches, including a sales pace slower than during the Great Recession’s lows. However, the number of Californians missing their mortgage payments does not appear to be a serious concern in mid-2026.

History lesson

If those 21,543 troubled borrowers in California look like a large flock, let me offer a harsh perspective.

California started 2026 with 93% fewer foreclosure filings than the average pace between 2008 and 2012, when troubled borrowers were everywhere in the darkest days of the Great Recession and its real estate fallout. Only Nevada had a bigger drop (94%) among the states.

Nationally, foreclosures are running 83% below their ugliest era. Just two states, both tiny, are seeing foreclosures above the 2008-12 level: North Dakota, up 53%, and Vermont, up 20%.

And Texas? It’s 60% below the Great Recession, but the 17th smallest dip. Florida is down 86%, the 14th biggest decline.

Foreclosures remain historically low because mortgages today are harder to get, unlike the easy-money bubble days of another era that exploded into the Great Recession.

The folks who bought in recent years appear to be financially well qualified to own. Plus, the economy has been meek but stable, keeping the paychecks that pay the lender flowing.

Foreclosure frequency

Let’s not totally dismiss the pain of 2026’s troubled borrowers, given that California has a noteworthy share of these bill-paying problems.

Ponder these foreclosures compared with the number of homes owned in a state. Across California, you could find a house in foreclosure for every 374 homes in 2026’s first half.

That ranks the Golden State’s foreclosure frequency as the 14th-highest among the states. Nationally, there’s a foreclosure for every 415 homes.

The District of Columbia had the highest foreclosure rate: one for every 235 homes. Next came Florida (250) and South Carolina (274). Texas had a foreclosure for every 347 homes, the nation’s 10th highest.

Where are foreclosures rare? Vermont had one for every 2,641 homes, West Virginia’s 1,736 and South Dakota’s 1,644.

Growing troubles

It’s hard to ignore that foreclosures are on the rise, and it’s certainly a trend to watch.

Fortunately for the California market, the latest upswing is modest. Foreclosures have risen 13% in two years as much of the help for troubled borrowers ended, and the economy cooled.

It’s worth noting California had the 12th-smallest rise among the states. Its gain is far below the nation’s 28% jump over two years.

Problems with making mortgage payments are surging in Montana (up 127%), Colorado (up 121%), and Wyoming (up 104%).

Meanwhile, foreclosures actually dipped in four states over the past two years: Connecticut by 38%, Massachusetts 20%, D.C. 7%, and Rhode Island 2%.

Perhaps Californians can take some pride in their mortgage-paying skills compared with their major competitors.

Texas foreclosures are up 41% in two years, the nation’s 21st-largest increase. Florida rose 37%, ranking No. 24.

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com

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