Aligning with typical seasonal patterns, the number of U.S. residential properties with foreclosure filings declined in April but continued to march higher on an annual basis as affordability pressures build.

Foreclosure filings fell 8% over the month to 42,430, which was 18% higher than a year ago, according to real estate market analytics firm Attom.

The end of pandemic-era emergency loss mitigation tools last year has also fueled the sustained rise in foreclosure activity, which included a 12% annual increase in foreclosure starts and 42% jump in real estate owned (REO) sales or lender repossessions in April.

Attom CEO Rob Barber said in a statement that the year-over-year increases “suggest lenders may be working through distressed inventory as higher borrowing costs and affordability challenges impact some homeowners.”

Foreclosure inventory had risen to its highest level in six years in March, according to data from ICE Mortgage Technology, with approximately 154,000 more borrowers in serious delinquency or active foreclosure compared to a year ago.

“Even so, foreclosure activity remains significantly below pre-pandemic levels,” Barber added in Thursday’s report.

Delaware, South Carolina and Florida had the worst foreclosure rates in the nation last month. One in every 3,388 housing units nationwide carried a foreclosure notice in April, compared to 1 in 1,739 units in Delaware, 1 in 1,745 units in South Carolina and 1 in 2,092 units in Florida.

Florida and Texas posted the largest volume of foreclosure starts in April. Of the 28,414 properties on which lenders initiated foreclosure proceedings last month, 3,505 — or more than 12% — were in Florida. Slightly more than 11% of foreclosure starts were in Texas, which claimed 3,154. California had the third-highest volume at 2,786.

Steadily growing stress among some homeowners has also steadily increased the number of REO sales, which represent completed foreclosures on properties ultimately repurchased by the mortgage lender or servicer. The 5,098 REO transactions in April reflect a 3% decline from March but 42% rise from year-ago levels.

Texas recorded the most REO sales in April with 640, while California and Florida followed with 515 and 381 apiece. Attom reported last month that REO sales during the first quarter were 45% higher than a year ago, underscoring the persistence of the trend in early 2026.