Mortgage Foreclosures Increase
Mortgage foreclosures in the U.S. have been increasing over the past year, although they are still well below the levels seen during the 2008 housing crisis and generally remain below pre-pandemic norms.
Some recent data:
Q1 2026 foreclosure filings were up 26% year-over-year, reaching nearly 119,000 properties.
April 2026 foreclosure filings were up 18% from a year earlier.
Foreclosure starts (the beginning of the process) increased 12% year-over-year in April and 20% year-over-year in Q1.
Bank repossessions (REOs) rose 42% year-over-year in April.
Why are foreclosures increasing?
The biggest factors appear to be:
Higher mortgage rates and housing costs
Rising property taxes and homeowners insurance premiums
Increased HOA and condo fees in some markets
The end of many pandemic-era mortgage relief programs
Financial pressure from other debts (credit cards, auto loans, student loans)
What does this mean for investors?
For real estate investors and property managers, the increase is creating more opportunities in:
Pre-foreclosures
Short sales
REO/bank-owned properties
Distressed multifamily assets in markets where values have softened
However, this is not currently a broad housing crash scenario. Most homeowners still have significant equity, which often allows them to sell before a foreclosure is completed
Here’s a practical investor-focused snapshot of what I'm seeing in Monmouth, Ocean, and Middlesex Counties as of June 2026.
Monmouth County
Approximately 533–558 homes are currently in pre-foreclosure, representing about 0.25%–0.26% of residential properties.
More than 5,200 involuntary liens have been recorded countywide.
There are currently over 120 scheduled foreclosure auctions being tracked in the county.
Despite the increase in distress, over 81% of homeowners still have substantial equity, which means many distressed owners can sell before reaching sheriff's sale.
Investor takeaway: Monmouth remains more of a pre-foreclosure and equity-sale market than a deep-discount foreclosure market. Towns such as Howell, Freehold, Middletown, and Neptune tend to generate the largest pools of distressed single-family opportunities.
Ocean County
Ocean currently shows roughly 728–794 pre-foreclosure properties, a noticeably higher count than Monmouth.
Distressed properties account for about 0.29%–0.31% of the housing stock.
More than 9,700 involuntary liens are recorded countywide.
Property records indicate about 1,000 pre-foreclosure filings affecting 971 properties during the past 2.5 years.
Investor takeaway: Ocean County currently offers the largest volume of distress among the three counties. Areas such as Toms River, Brick Township, Lakewood, and Manchester Township are worth monitoring for foreclosure, tax lien, and estate-sale opportunities.
Middlesex County
Property records show approximately 947 properties entering pre-foreclosure over the past 2.5 years, making Middlesex comparable to Ocean in raw volume.
Activity appears concentrated in communities such as Woodbridge, Edison, South Amboy, and Carteret.
Investor takeaway: Middlesex tends to produce more opportunities in older suburban housing stock and small multifamily properties than the Shore counties. Because of proximity to employment centers and commuter rail, distressed properties often attract aggressive competition from investors.
