Foreclosures spike across California — as new hotspots are revealed

California foreclosures are at their highest levels since the COVID-19 pandemic, according to the latest June 2026 numbers.

The Golden State ranked nine out of the top 10 in worst foreclosure rates last month in the nation with one in every 3,205 housing units foreclosed. The top three states were Florida, South Carolina and Indiana.

Nationwide, one in every 3,656 housing units had a foreclosure fling, according to ATTOM Data.

A foreclosed home up for sale in Altadena, California. Getty Images

While the national June numbers are an improvement from May, foreclosure rates are still higher than last year’s numbers.

Of California’s 14,644,735 housing units, around 4,500 foreclosed last month. Lake, Shasta, Sutter and Mendocino counties saw the worst foreclosure rates.

More broadly, in the first half of this year, California had 21,543 homes in various levels of foreclosure activity.

It’s the third-highest total among the states, accounting for 9% of the nation’s 227,548, only ranking after Texas and Florida.

However, experts told The California Post that there shouldn’t be much to worry about. Realtor.com senior economist Jake Krimmel said the idea of a foreclosure crisis or housing crash “is very far from the case.”

Instead, Krimmel argued the rise in foreclosures is actually a market “normalization” due to pandemic-era relief programs like mortgage forbearance and payment deferral recently ending.

“We’ve come off really historic lows that any uptick is going to draw some attention,” Krimmel said.

A foreclosure sign hangs on a fence in front of a foreclosed home on April 6, 2011 in Richmond, California. Getty Images

These foreclosures may actually have a bright spot: They help to discount homes especially in California’s uber-expensive housing market, by up to around a 27% price drop, especially if those foreclosed homes are not in the best shape.

“If it’s selling for 20–30% less than it otherwise would just because it has the foreclosure label on it, for the right first-time buyer it could be a solution in a high-cost market like California,” Krimmel told The Post.

Additionally, the data shows that California’s uptick in foreclosures is still relatively modest compared to other states.

The state had the 12th-smallest rise in foreclosures in the last two years, while mortgage payments are surging in states like Colorado or Wyoming.

According to ATTOM analysts, the national monthly decline in foreclosure activity was driven by fewer foreclosure starts, while completed foreclosures continued to increase.

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