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Nearly Half of Recent Foreclosure Sales Were Loans Made Since 2022. Here’s Why Newer Buyers Feel the Squeeze

Loans made in 2022 or later made up 43% of foreclosure starts and 49% of completed sales in September 2026. Here's why recent buyers are more stretched, and what helps.

By · Updated · 4 min read

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Foreclosures are still low by historical standards, but a new pattern stands out. In September 2026, loans made in 2022 or later accounted for 43% of foreclosure starts and 49% of completed foreclosure sales, according to ICE’s monthly mortgage data.

In plain English: newer homeowners, who bought at higher prices and higher rates, are a growing share of those in trouble. If that’s you, the good news is there are more ways out than most people think, and acting early matters most.

Quick answers

  • National delinquency rate: 3.66% in September 2026, still 34 basis points below September 2019 (ICE).
  • Foreclosure sales: 8,200 in September, up 14.5% from a year earlier. Foreclosure inventory hit its highest level since early 2019.
  • Loans from 2022 onward: 43% of foreclosure starts and 49% of completed sales.
  • Federal rules generally bar your servicer from starting foreclosure until you’re more than 120 days behind, which gives you time to ask for help.

What the latest data shows

ICE’s First Look report for September 2026 found the national delinquency rate rose 12 basis points to 3.66%, about in line with normal seasonal patterns. Serious delinquencies (90+ days late) were 1.04% of loans, similar to pre-pandemic averages but up 21% from a year earlier.

The bigger shift is in foreclosures. Foreclosure starts were about 40,000, slightly lower than a year ago. But the number of homes sitting in the foreclosure process rose 35.5% year over year to about 303,000, and completed sales were up 14.5%. ICE noted that the foreclosure pipeline is shifting toward recent loans.

Myth buster“A foreclosure wave is here.” The data doesn’t say that. Delinquencies are below 2019 levels, and most owners have solid equity. What’s rising is a smaller group of stressed borrowers, many with recent loans.

Why recent buyers are more stretched: we ran the numbers

Compare the same $320,000 loan at different rates. Many owners who bought or refinanced before 2022 locked in around 3%. Since late 2022, 30-year rates have mostly been above 6%; Freddie Mac’s average was 7.18% on Nov. 5, 2026.

30-year fixed rate Monthly P&I on $320,000 vs. a 3% loan
3.0% $1,349 —
6.0% $1,919 +$570
6.5% $2,023 +$674
7.0% $2,129 +$780
7.18% $2,168 +$819

Recent buyers often have three pressures at once: a higher payment, less equity built up (because they bought recently and early payments are mostly interest), and rising costs for taxes and insurance that flow through escrow. Less equity also means fewer easy exits; selling may not cover the loan plus selling costs.

Fun factOn a new 30-year loan at 7%, only about $262 of the first $2,129 payment goes to principal. The rest is interest. That’s why equity builds slowly in the first few years. See it month by month in our amortization calculator.

If you’re worried about falling behind

  1. Call your servicer before you miss a payment, if you can. Ask about forbearance, a repayment plan, payment deferral or a loan modification.
  2. Know the 120-day rule. Under CFPB rules, servicers generally can’t make the first foreclosure filing until you’re more than 120 days delinquent. Use that time to apply for help; a complete application can pause the process.
  3. Talk to a HUD-approved housing counselor. Counseling is free or low-cost. Search the counselor list on consumerfinance.gov.
  4. Watch for scams. Never pay upfront fees to someone promising to “save your home.”

We cover every option in detail in Can’t pay your mortgage? Your options and where to get free help.

What this means for you

  • Bought in 2022–2026 and doing fine: build a cash cushion of a few months of payments. Check if a future refinance would pay off if rates drop.
  • Escrow payment jumped: ask your servicer for the escrow analysis and check your insurance and tax bills for errors.
  • Thinking of buying now: stress-test your budget with a payment a bit higher than you expect. Our affordability calculator and DTI guide help.
  • Already behind: act now. Every option is easier earlier.

FAQ

Are foreclosures rising in 2026?

Completed foreclosure sales were up 14.5% year over year in September 2026, and foreclosure inventory reached its highest level since early 2019. Overall delinquency is still below pre-pandemic levels.

How late do you have to be before foreclosure?

For most home loans, federal rules say the servicer can’t make the first foreclosure filing until you’re more than 120 days behind. State rules then set the rest of the timeline.

Why are newer loans more likely to be in foreclosure?

They tend to have higher rates, higher payments and less equity. ICE reported that loans made in 2022 or later were 43% of September foreclosure starts.

Will missing one payment hurt my credit?

A payment 30+ days late is usually reported to credit bureaus and can lower your score. Call your servicer as soon as you know a payment will be late. See our credit score guide.

Sources: ICE First Look, September 2026 data; Consumer Financial Protection Bureau; Freddie Mac PMMS via FRED; Keys & Coffee calculations. This article is general education, not financial or legal advice. Keys & Coffee is not a lender.

Shivam Kaushik (IMSHIVA)

Written by

Shivam Kaushik· IMSHIVA

Founder & Director, QuibbleTech Solutions Pvt Ltd · Editor, Keys & Coffee

Shivam Kaushik is the founder of QuibbleTech Solutions Pvt Ltd and the editor of Keys & Coffee. He is not a licensed loan officer or financial adviser. Every guide here is written in plain English and checked against official sources such as the CFPB, HUD, Fannie Mae, Freddie Mac and the Federal Reserve. For advice on your own loan, talk to a licensed lender.

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Keys & Coffee is an independent education site. We are not a lender or mortgage broker, we do not take loan applications or payments, and nothing here is financial advice. This site is not affiliated with Axia Home Loans, Axia Financial, LLC, or Planet Home Lending. Rates and rules change often — always confirm details with a licensed loan officer and check any lender on the NMLS Consumer Access site.

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