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Indiana has the worst foreclosure filing rate of all states in the U.S., according to new property data, contributing to a gradual upward trend in foreclosure rates that began last year. Two cities — Indianapolis and Evansville — rank in the top five of all U.S. major metropolitan areas.
In February, there was one foreclosure for every 1,597 housing units in Indiana.
Indiana’s Feb. 2026 ranking comes from the national property data research firm ATTOM, which collects foreclosure filing data directly from more than 3,000 county assessor offices nationwide. The company says the data accounts for about 99% of the U.S. population. It combines defaults, auctions and real estate-owned properties (REOs) to calculate total foreclosure filings.
South Carolina and Florida had the next highest rankings last month. In December, Indiana ranked sixth of all states.
For major metropolitan areas, Indianapolis ranked third and Evansville fourth highest for cities with more than 200,000 residents.
More foreclosures can limit opportunities for local families to build generational wealth, according to Amy Nelson, executive director of the Fair Housing Center of Central Indiana.
"Far too often, when these homes end up going into foreclosure, they end up being purchased by out-of-state investors, who then flip them into expensive rentals," she said.
WFYI reached out for comment to spokespeople for Gov. Mike Braun, Indianapolis Mayor Joe Hogsett and Evansville Mayor Stephanie Terry. They were not available by publication.
An FHCCI analysis of property data in January 2025 found that out-of-state investors owned over 20,000 homes — or about one in four homes — in five Central Indiana counties.
The foreclosure report from ATTOM says that the 38,840 properties across the U.S. foreclosure filings were down 4% from the 40,534 filings in Jan. 2026 but still up 20% from filings a year ago.
“Foreclosure activity in February marked the twelfth consecutive month of annual increases, extending a gradual upward trend that began early last year,” said Rob Barber, CEO at ATTOM. “Even with the continued rise, overall foreclosure levels remain well below historic norms.”
Nelson said Indiana has ranked high recently due to a combination of reasons.
“It is rising escrow costs, for instance. Although your mortgage payment very often hasn’t changed much, it’s the other costs that have, and that can be home insurance rates, which have been escalating, and utility costs and property taxes, all of which can have a significant impact.
The FHCCI released a report last year that examined the rising number of foreclosures in Marion County and found the top five neighborhoods with highest foreclosure rates were: Crown Hill, Near Northwest-Riverside, Maywood, Near Southside, and Martindale Brightwood.
The Far Eastside, which ranked 9th in foreclosure filings in Marion County, has been targeted by out-of-state investor-owners, Nelson said.
“The first thing we need to do is start recognizing that the problem is here, and start talking about it and trying to figure out what it is we can do,” she said.
Contact WFYI data journalist Zak Cassel at zcassel@wfyi.org