Homeowners Shift from Online Searches to Legal Action as Costs Rise

LegalShield data shows foreclosure-related legal demands reach highest level since 2020 as households face payment shocks from insurance and tax hikes.

Apr. 13, 2026 at 10:38pm

Got story updates? Submit your updates here. ›

A minimalist illustration using bold geometric shapes and primary colors to conceptually represent the rising costs and financial pressures facing American homeowners, including home insurance, property taxes, and interest rates.Surging home costs and financial pressures push more homeowners to seek legal assistance.Lawrence Today

According to the LegalShield Consumer Stress Legal Index, foreclosure-related legal demands reached their highest level since March 2020 in the first quarter of 2026 as the Foreclosure Index increased over the previous year and ticked up in March. This shift from online research to legal action indicates homeowners are experiencing actionable financial pain rather than just general fear, with the Bankruptcy Index also more than doubling since 2022 as households face rising interest rates, inflation, and debt.

Why it matters

The rise in foreclosure-related legal demands and the Bankruptcy Index signal growing financial distress among homeowners, driven by factors like surging homeowner's insurance premiums and property tax increases that are causing payment shocks and pushing some households to the brink. This data provides an early warning sign of potential broader economic impacts if these trends continue.

The details

The LegalShield Consumer Stress Legal Index (CSLI) shows that in the first quarter of 2026, foreclosure-related legal demands reached their highest level since March 2020. The Foreclosure Index increased 20.3% over the previous year and rose 13.4% in March alone, reflecting households shifting from financial concern to legal action. Meanwhile, the Bankruptcy Index has more than doubled since the Federal Reserve started raising interest rates in 2022 and increased once more in the first quarter. Google Trends data also shows searches for 'help with mortgage' reached an all-time high in Q1, coinciding with the increase in foreclosure inquiries.

  • In the first quarter of 2026, foreclosure-related legal demands reached their highest level since March 2020.
  • The Foreclosure Index increased 20.3% over the previous year and rose 13.4% in March 2026.
  • The Bankruptcy Index has more than doubled since the Federal Reserve started raising interest rates in March 2022 and increased once more in the first quarter of 2026.

The players

Chris Peoples

A LegalShield provider lawyer in Lawrence, Kansas.

Matt Layton

SVP of Consumer Analytics for LegalShield.

Got photos? Submit your photos here. ›

What they’re saying

“Often times, people don't call a lawyer when the problem starts, they call when it becomes undeniable and time-sensitive.”

— Chris Peoples, LegalShield provider lawyer

“That behavioral shift is exactly what our data captures. Google searches tell you people are worried. Our Foreclosure Index tells you they've decided to act. Right now, both signals are elevated simultaneously. Historically, when legal calls reach this level, court filings follow within two quarters.”

— Matt Layton, SVP of Consumer Analytics

What’s next

Based on the historical lead time between LegalShield's intake data and actual court filings, bankruptcy filings are expected to rise meaningfully through mid-2026.

The takeaway

The rise in foreclosure-related legal demands and the Bankruptcy Index signal growing financial distress among homeowners, driven by factors like surging homeowner's insurance premiums and property tax increases that are causing payment shocks and pushing some households to the brink. This data provides an early warning sign of potential broader economic impacts if these trends continue.