WEST CHESTER, PA — Foreclosure activity increased nationwide in February while Chester County’s housing market remained relatively stable, supported by strong home prices and homeowner equity, according to a report from property data firm ATTOM.
ATTOM reported 38,840 U.S. properties with foreclosure filings in February, down 4 percent from January but up 20 percent from a year earlier, marking the 12th consecutive month of annual increases.
“Foreclosure activity in February marked the twelfth consecutive month of annual increases, extending a gradual upward trend that began early last year,” ATTOM CEO Rob Barber said. “Even with the continued rise, overall foreclosure levels remain well below historic norms.”
Nationwide, one in every 3,701 housing units had a foreclosure filing during the month.
States with the highest foreclosure rates included Indiana, South Carolina, and Florida, while Delaware and Illinois also ranked among the top five.
Among large metropolitan areas, Lakeland, Florida, recorded the highest rate, followed by Punta Gorda, Florida; Indianapolis; Evansville, Indiana; and Columbia, South Carolina.
Lenders initiated foreclosure proceedings on 25,928 properties in February, down 2 percent from January but up 14 percent year over year.
Texas, Florida, and California recorded the highest number of foreclosure starts, according to the report.
At the same time, some major metropolitan areas saw declines in foreclosure starts compared with a year earlier, including Philadelphia, where filings dropped from 743 in February 2025 to 482 in February 2026.
Completed foreclosures also increased annually, with lenders repossessing 4,077 properties nationwide in February.
That figure represents a 14 percent decline from the previous month but a 35 percent increase from a year earlier.
Pennsylvania recorded 234 completed foreclosures, placing it among the states with the highest number of repossessions, though its foreclosure rate remained moderate at approximately one in every 4,180 housing units.
In Chester County, local housing conditions appear to be limiting the impact of rising foreclosure activity.
The median home sale price in the county reached $526,000 in February, a 5.2 percent increase from a year earlier, reflecting continued demand and constrained inventory.
Homes spent a median of 40 days on the market, a slight increase that suggests a shift toward more balanced conditions compared with the intense competition seen in prior years.
Market data indicates that elevated homeowner equity has served as a key buffer against foreclosure, reducing the likelihood that distressed properties move through the full foreclosure process.
A sheriff sale held Thursday, February 19, included a range of distressed properties, representing the final stage of foreclosure proceedings.
Some properties carried relatively low outstanding debts, including one listing with a judgment of $1,565.19, according to local records.
The auction was conducted online through Bid4Assets, which facilitates sheriff sales for distressed properties.
Despite the national rise in foreclosure filings, Chester County continues to be characterized as a seller’s market, with foreclosure levels remaining below historical norms.
Analysts attribute that stability to tighter lending standards, sustained buyer demand, and a resilient local economy.
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