Foreclosure Rates Are Rising in 2026: What Texas Homeowners Should Know 

Foreclosure activity has been increasing across the U.S. in 2026. While foreclosure levels are still below historical highs, more properties are entering the foreclosure process compared to last year.

For Texas homeowners, these trends are a good reminder of the importance of staying ahead of housing expenses, including property taxes. Understanding what is contributing to the increase and knowing what options are available can help homeowners address financial challenges before they become more serious.

Foreclosure Activity in 2026 

Foreclosure activity increased during the first half of 2026 compared with the same period last year.

Here are a few key numbers:

• Foreclosure activity increased 21% compared with the first half of 2025.
• 164,566 properties entered the foreclosure process, an 18% increase from the previous year.
• Bank repossessions increased 33% during the first half of the year.
• The average foreclosure took 563 days, the fastest processing pace since 2013.

Even with these increases, foreclosure activity remains below historical pre-pandemic levels.

Factors Contributing to Rising Foreclosures 

There is no single reason homeowners fall behind. A combination of higher costs and financial challenges can make it harder to keep up with the expenses that come with owning a home.

Some of the factors affecting homeowners include:

• Higher mortgage rates
• Rising property taxes
• Increasing homeowners’ insurance costs
• Higher everyday living expenses
• Job loss or changes in household income
• Unexpected financial emergencies

When several expenses increase at the same time, homeowners may find it more difficult to stay current on their payments.

Putting the Increase in Perspective 

Although foreclosure activity is increasing, current levels remain well below those seen during the housing crisis. Many homeowners also have significant equity in their homes, which can provide additional options when financial difficulties arise.

Still, the increase is something homeowners should pay attention to. Addressing financial problems early can help prevent them from becoming more difficult and expensive to resolve.

Property Taxes and Foreclosure in Texas 

Falling behind on property taxes can create additional financial pressure for Texas homeowners. When property taxes become delinquent, penalties and interest begin to accumulate on the unpaid balance. The property can also become subject to a tax lien and eventually foreclosure proceedings. The longer property taxes remain unpaid, the more the balance can grow. This can make an already difficult financial situation harder to manage.

Options for Homeowners with Delinquent Property Taxes 

Homeowners who are struggling with delinquent property taxes may have several options available depending on their situation.

These can include:

• Working with the county on a payment arrangement
• Determining whether they qualify for a tax deferral
• Paying the delinquent balance before additional costs accumulate
• Exploring a property tax loan that allows the balance to be repaid through monthly payments

Acting early can provide more flexibility and help prevent additional penalties, interest and other costs from accumulating.

How Johnson & Starr Can Help 

Johnson & Starr works with Texas property owners who need help addressing delinquent property taxes. A property tax loan can pay off the delinquent tax balance and allow the property owner to repay the loan through manageable monthly payments.

For homeowners concerned about falling further behind, exploring available options early can make a significant difference.

Contact Johnson & Starr to learn more about property tax loan options and find a solution that works for your situation.