‘Zombie’ home foreclosure numbers in second quarter increase in 38 states

The headline refers to a new ATTOM/Q2 2026 “Vacant Property and Zombie Foreclosure” report showing that the number of zombie homes rose quarter‑over‑quarter in 38 states and D.C, even though zombies remain a tiny share of the overall housing stock and vacancy rate.

What the new report says

ATTOM’s latest Q2 2026 vacancy and zombie foreclosure release notes that zombie properties (vacant homes in the foreclosure process) increased in most of the country. Specifically, the number of zombie homes rose quarter‑over‑quarter in 38 states and the District of Columbia, while the national overall residential vacancy rate held steady at about 1.3 percent.

ATTOM also reports that the share of foreclosures that are “zombie” ticked up to around 3.4 percent nationally, indicating a modest increase in abandoned-in-foreclosure properties, not a systemic wave.

Scale of the problem

The ATTOM data and related coverage emphasize that zombie foreclosures remain a very small slice of the U.S. housing market. The national vacancy rate is flat, and zombies account for only a low‑single‑digit percentage of homes in the foreclosure pipeline—far from the kind of distressed‑inventory overhang seen post‑2008.

Moreover, even where quarter‑over‑quarter changes are large in percentage terms, the absolute numbers are small; for example, past ATTOM releases and commentary have highlighted that many states are still dealing with counts in the low hundreds of zombie properties.

States with the largest increases

Among states with at least 100 zombie properties, ATTOM flags several with the largest Q2 2026 quarter‑over‑quarter jumps. Those include:

• Georgia: Up roughly 98 percent, to about 101 zombie properties.

• North Carolina: Up about 67.2 percent, to around 102 zombie homes.

• Indiana: Up about 42 percent, to roughly 294 zombies.

• Iowa: Up about 35.5 percent, to about 126 zombies.

• South Carolina: Up about 15.4 percent, to around 150 zombies.

By contrast, only two states with at least 50 zombie homes saw declines: Washington (down about 13.1 percent to roughly 53) and New York (down about 2.2 percent to about 1,352).

Context versus prior quarters/years

ATTOM and trade coverage frame this as part of a normalization rather than a new crisis. In earlier reports, zombie foreclosures had shrunk to historically low levels—about 6,945 such properties in Q2 2024, decreasing in 30 states quarter‑over‑quarter and 38 states year‑over‑year.

By Q2 2025, the number of zombie homes in pre‑foreclosure had edged up to 7,329, about 3.3 percent of pre‑foreclosure properties, with modest statewide increases and decreases. The current Q2 2026 uptick to roughly 3.4 percent and the fact that 38 states and D.C saw increases suggest a continuation of that gradual move toward more “normal” post‑forbearance foreclosure activity, rather than a sudden deterioration.

Implications for lenders, servicers, and regulators

Commentary around the ATTOM release stresses that the increase likely reflects courts, servicers, and investors working through a backlog and returning to more typical enforcement of delinquent loans after years of pandemic‑era distortions. From a risk perspective, the concentration in relatively small absolute numbers and the stable overall vacancy rate means limited direct systemic risk, but local effects (blight, code issues, property‑tax base) can be meaningful in certain counties or neighborhoods.

Given your focus, this trend is likely to intersect with:

• Operational planning: Higher foreclosure throughput and a slightly larger zombie share can affect property preservation, REO management, and local compliance workloads.

• Policy narrative: Expect renewed local discussions about vacancy, neighborhood impact, and whether municipal or state programs should target zombie properties, similar to post‑GFC initiatives.

• Data and reporting: ATTOM’s framing—that this is a normalization, not a crisis—will likely show up in regulatory and media narratives, tempering “wave of zombie foreclosures” headlines.