News Desk / Foreclosures and distress
FHA delinquencies near 12%: how agents can help owners before foreclosure
More than one FHA loan in nine was behind on payments in mid-2026, and loans are moving into later stages of delinquency. Here is what the numbers say and how agents can help an owner before the lender sets a sale date.
The numbers
Mortgage delinquencies eased a little in the spring but are clearly higher than a year ago, and the pressure is concentrated in FHA loans. The Mortgage Bankers Association's National Delinquency Survey, released August 13, 2026, put the seasonally adjusted delinquency rate for one- to four-unit homes at 4.37% at the end of June: down 0.07 points from the first quarter and up 0.44 points from a year earlier.
| Loan type, Q2 2026 | Delinquent (30+ days) | Change from a year earlier |
|---|---|---|
| FHA | 11.79% | +1.22 pts |
| VA | 4.89% | +0.57 pts |
| Conventional | 2.72% | +0.12 pts |
| All loans | 4.37% | +0.44 pts |
Source: MBA National Delinquency Survey, Q2 2026, as reported by HousingWire on August 13, 2026.
The more important number is the seriously delinquent rate, loans 90 or more days late or already in foreclosure. It rose to 2.06%, up 0.49 points in a year and higher for the fourth quarter in a row; for FHA loans it was up 2.27 points. MBA's Marina Walsh said some loans are "continuing to move to later stages of delinquency." Loans in foreclosure reached 0.67% of all loans, up about 0.19 points.
Why FHA borrowers, and why it matters to agents
FHA loans serve buyers with smaller down payments and lower credit scores, so recent FHA buyers often have little equity, especially where prices have flattened. Many bought in the last few years with 3.5% down. That is the group where a listing agent is most likely to meet an owner who owes close to what the home is worth.
The three paths, in plain words
- Pre-foreclosure sale (equity sale). The owner is behind but the home is worth more than the payoff, arrears, fees and selling costs. A normal listing, priced to sell before the foreclosure sale date, pays off the loan and the owner keeps the rest. Time is the enemy; the calendar comes from the lender and state law.
- Short sale. The home is worth less than what is owed. The lender must approve the price and agree to take less. It takes longer, needs a hardship package from the owner and patient buyers, and any remaining debt or tax effects are questions for the owner's attorney and tax adviser.
- REO. The foreclosure is complete and the lender owns the home. ATTOM counted 5,794 completed foreclosures in August 2026, up 42% from a year earlier. These are listed by the lender's chosen agents and sold mostly as-is.
Before any of these, the owner should talk to the servicer about loss mitigation: repayment plans, loan modifications and, for FHA loans, options set by HUD's rules. A HUD-approved housing counselor (800-569-4287 or hud.gov/findacounselor) helps for free. Anyone charging an upfront fee to "save" a home is a red flag, and many states have rules for agents and others who work with owners in foreclosure; know yours before you call.
“Call early, be kind and bring numbers. An owner who is behind doesn't need a sales pitch. They need to know what the house will sell for, what they owe and how much time they have.”
What to tell your clients
The first conversation: listen first, then three numbers: likely sale price, estimated payoff with arrears, and the date of any scheduled sale. Write them down for the owner.
If there is equity: price to sell quickly, not to test the market. A price cut three weeks before the sale date costs the owner more than starting at the right price.
If there is not: explain what a short sale involves, how long it can take, and that the lender decides. Refer legal and tax questions out, every time.
Today's numbers
Where the market stands now
The story above is dated October 21, 2026. These update on their own as the publishers release new data.
Questions
Quick answers
What is the FHA delinquency rate?
11.79% of FHA loans were 30 or more days past due at the end of the second quarter of 2026, up 1.22 points from a year earlier, per the MBA National Delinquency Survey.
What is the difference between a pre-foreclosure sale and a short sale?
In a pre-foreclosure sale the home sells for more than is owed, so the loan is paid off and the owner keeps the equity. In a short sale the home sells for less than is owed and the lender must approve the deal.
Where can a homeowner get free foreclosure help?
A HUD-approved housing counselor, at 800-569-4287 or hud.gov/findacounselor. HUD-approved agencies do not charge to review options for a homeowner behind on a mortgage.
Sources
- Mortgage Bankers Association, as reported by HousingWire, “Mortgage delinquencies eased in Q2, still higher than 2025,” August 13, 2026. www.housingwire.com
- Mortgage Bankers Association, “Mortgage Delinquencies Decrease Slightly in the Second Quarter of 2026,” August 13, 2026. www.mba.org
- ATTOM, “Foreclosure Activity Remains Above Year-Ago Levels in August 2026,” September 17, 2026. www.attomdata.com
- U.S. Department of Housing and Urban Development, “Find a HUD-approved housing counselor,” Accessed October 21, 2026. www.hud.gov
Written by the AgentCOS News Desk in our own words from the sources above. Numbers are as published on the dates shown; publishers sometimes revise them later.