Texas has the highest number of completed foreclosures in the United States, according to new national data released this month. The report from ATTOM, a real estate data firm, found that 227,548 properties nationwide had foreclosure filings in the first half of 2026, a 21% increase from the same period in 2025. Completed foreclosures rose even faster, with lenders repossessing 27,983 properties nationally, up 33% from the previous year. Texas accounted for 3,322 of those, more than any other state.
The rise in foreclosures coincides with an increase in bankruptcy filings. The Administrative Office of the U.S. Courts reported 591,850 bankruptcy filings for the twelve months ending March 31, 2026. Chapter 13 filings, which are often used to save a home, increased by 8% in the first quarter of the year.
Marcus Leinart, founder of Leinart Law Firm in Dallas, says many homeowners are unaware of how quickly the foreclosure process moves in Texas. Unlike many other states, Texas uses a nonjudicial foreclosure process governed by Chapter 51 of the Texas Property Code. This means no lawsuit is filed and no judge reviews the case. A homeowner can go from notice to sale in roughly six weeks. The servicer must give a homestead owner 20 days to cure the default, followed by 21 days' notice before the sale, which is held on the first Tuesday of the month at the county courthouse.
"People call us on a Monday about a sale scheduled for the next morning, and sometimes we can still help them," Leinart said. "But the options are much better six weeks earlier. What homeowners in Texas often don't realize is how little has to happen before a house is sold. There's no courtroom, no hearing, no judge."
Leinart, a Dallas bankruptcy lawyer with more than 20 years of experience, emphasizes that filing for bankruptcy can stop a foreclosure sale immediately. The automatic stay takes effect the moment a bankruptcy case is filed, which can halt a sale even if it is set for the following Tuesday. Chapter 13 bankruptcy allows homeowners to repay past-due amounts over three to five years, and Texas's homestead exemption has no value limit, so qualifying homeowners can usually keep their homes.
The firm, which has offices in Dallas and Fort Worth, has filed thousands of bankruptcy cases since opening in 2005. Leinart says the recent increase in filings is a sign that many Texas homeowners are struggling to keep up with mortgage payments, and he urges them to seek help early. "A filing stops the sale immediately, and Chapter 13 gives a family a structured way to catch up while staying in the home," he said.
For more information on foreclosure trends and bankruptcy options, visit the ATTOM mid-year foreclosure report at https://www.attomdata.com/news/market-trends/foreclosures/midyear-2026-foreclosure-report/ and the Administrative Office of the U.S. Courts at https://www.uscourts.gov/statistics-reports/analysis-reports/bankruptcy-filings.
