U.S. foreclosure activity increased in July 2026, with lenders starting more proceedings and repossessing more properties than a year earlier, signaling continued financial pressure on some homeowners even as the broader housing market remains far from the distress levels seen before the pandemic.<\/p>\n
A total of 39,906 U.S. properties had foreclosure filings in July, including default notices, scheduled auctions and bank repossessions, according to data released Wednesday by ATTOM. The figure rose 1% from June 2026, and up 10% from July 2025.<\/p>\n
The increase extends a broader pattern of rising foreclosure activity during the past year, as elevated housing costs, expensive borrowing and uneven household finances continue to put pressure on some homeowners.<\/p>\n
“The increase in foreclosure starts and completed foreclosures compared to last year shows that financial pressures remain a factor for some homeowners,” said Rob Barber, chief executive officer of ATTOM. “However, the broader context is important. Foreclosure activity remains relatively low by historical standards.”<\/p>\n
Florida, Nevada and South Carolina Among Hardest-Hit States<\/strong><\/p>\n Nationwide, one in every 3,603 housing units had a foreclosure filing in July.<\/p>\n Nevada recorded the highest foreclosure rate, with one filing for every 1,703 housing units, followed by South Carolina at one for every 2,085 and Florida at one for every 2,232.<\/p>\n Delaware and Texas rounded out the five states with the highest foreclosure rates, at one filing for every 2,579 and 2,653 housing units, respectively.<\/p>\n At the metropolitan level, Punta Gorda, Florida, posted the nation’s highest foreclosure rate among markets with populations of at least 200,000. The Florida market recorded one foreclosure filing for every 899 housing units.<\/p>\n Punta Gorda was followed by Killeen, Texas, at one filing per 1,359 housing units; Las Vegas at one per 1,394; Vallejo, California, at one per 1,432; and Lakeland, Florida, at one per 1,501.<\/p>\n Texas, Florida Lead Foreclosure Starts<\/strong><\/p>\n Lenders initiated foreclosure proceedings on 26,648 U.S. properties in July, up 2% from June and 10% from a year earlier.<\/p>\n Texas led the country with 3,306 foreclosure starts, narrowly ahead of Florida with 3,277. California followed with 2,540, while Illinois and Georgia recorded 1,243 and 1,217, respectively.<\/p>\n The rise, however, was far from universal.<\/p>\n Among metropolitan areas with populations of at least 200,000 and at least 20 foreclosure starts, Tulsa, Oklahoma, recorded one of the sharpest annual declines, falling from 138 starts in July 2025 to 41 this year. Spokane, Washington, dropped from 43 to 20, while Fayetteville, North Carolina, declined from 62 to 31.<\/p>\n Toledo, Ohio, fell from 98 foreclosure starts to 49, while Greeley, Colorado, dropped from 47 to 24.<\/p>\n Completed Foreclosures Jump 23 Percent<\/strong><\/p>\n The number of properties actually repossessed by lenders remained elevated.<\/p>\n Lenders took possession of 4,764 properties through completed foreclosures, known as real estate owned, or REO, in July. That was essentially unchanged from June but 23% higher than a year earlier.<\/p>\n Texas accounted for the largest number of lender repossessions, with 1,265 REOs, followed by California with 616, North Carolina with 299, Maryland with 272 and Virginia with 263.<\/p>\n Houston recorded the most REOs among major metropolitan areas, with 405, followed by Dallas with 223, Baltimore with 164, Washington, D.C., with 131 and San Antonio with 128.<\/p>\n The increase in completed foreclosures is notable because it represents the point at which distressed properties move from delinquency and foreclosure proceedings into lender ownership, potentially adding inventory to local housing markets.<\/p>\n Distress Is Rising — But Not Yet a Crisis<\/strong><\/p>\n The July numbers underscore a housing market in which foreclosure activity is gradually normalizing after the extraordinary lows recorded during the pandemic.<\/p>\n Foreclosure filings were up 10% from a year earlier, foreclosure starts climbed 10%, and completed foreclosures surged 23%. Yet ATTOM said overall activity remains below historical norms, suggesting that the increase is better characterized as a gradual rebuilding of foreclosure activity than a return to the housing crisis conditions of the late 2000s.<\/p>\n That distinction is important for investors and housing-market participants. Rising foreclosure activity can create additional distressed inventory and pressure prices in vulnerable markets, but the national data do not currently indicate a broad-based wave of homeowner distress.<\/p>\n For now, the July 2026 figures point to a housing market absorbing higher financial stress without yet tipping into a systemic foreclosure crisis.<\/p>\n\n