If you're behind on your mortgage — or worried that you soon will be — you've probably asked yourself: Is now even a good time to consider a short sale? The honest answer is: it depends on your situation. But the 2026 housing market has created some real opportunities for homeowners who act sooner rather than later.

According to ATTOM's latest data, foreclosure filings have risen year over year for twelve consecutive months as of February 2026, with nearly 39,000 properties receiving filings in that month alone — up 20% compared to a year ago. Foreclosure starts are up 14% year over year, and completed repossessions have jumped 35%. While Utah’s foreclosure rates are better than the national averages, we are still not immune and should be aware of nationwide market trends.

That might sound alarming. But here's what the numbers also show: overall foreclosure activity is still well below the crisis-era peaks of 2008-2012. What we're seeing is a gradual normalization — meaning more homeowners are finding themselves in difficult situations, but the market hasn't tipped into free-fall (thank goodness).

For struggling homeowners, this is actually important timing. When foreclosure activity is rising but home values are still holding steady, that window is often the best moment to explore a short sale.

Here's some genuinely good news: home prices in 2026 remain elevated. Fannie Mae and the National Association of REALTORS® are both forecasting modest price growth of 2-4% this year. That means many homeowners who are behind on payments may still have more equity — or less negative equity — than they realize. This is especially true in the Utah market where values are up around 3% annually.

A short sale works best when home values are high enough to satisfy (or get close to) what you owe. Right now, that math is more favorable than it was a few years ago when interest rate hikes first pushed some homeowners underwater.

A short sale makes sense when you're experiencing a genuine hardship — job loss, divorce, medical bills, or a mortgage you simply can no longer afford — and your home's value is at or below what you owe. The 2026 market offers a window where lenders are actively processing short sale approvals, buyers are still purchasing homes, and values haven't crashed.

Waiting — hoping things improve on their own — is often the riskiest move. Once you're deep into the foreclosure process, your options narrow quickly.

If you're wondering whether a short sale might be the right path for you, don't wait until the decision is made for you. Reach out to a short sale specialist today to explore your options — there's no obligation, and the conversation could change everything. The views expressed are for information purposes and do not constitute as legal or financial advice.