US Foreclosures Surge 42% as Homeowners Struggle

Foreclosure activity in the United States saw a substantial increase in August, with lenders repossessing 42% more homes compared to the same month in 2025. Data from real estate analytics firm ATTOM revealed that 5,794 properties were completed through foreclosure in August, a rise of 22% from July. Overall, 40,277 U.S. properties received some form of foreclosure filing, including default notices, scheduled auctions, and bank repossessions. This figure represents a 13% increase from August 2025, continuing a trend of elevated foreclosure activity.

Florida led the nation in foreclosure starts with 3,189, followed closely by Texas with 3,126 and California with 2,565. Illinois and Georgia also reported high numbers of foreclosure starts.

The number of completed foreclosures was particularly pronounced in Texas, which recorded 1,835 in August. This figure is more than three times the 589 completed foreclosures in California. North Carolina, Arizona, and Alabama also saw significant numbers of repossessions.

Houston topped the list of major metropolitan areas with the most completed foreclosures, with 448 properties. Dallas followed with 402, and San Antonio with 256. Phoenix and Baltimore also reported a high volume of repossessions.

South Carolina experienced the highest foreclosure rate nationwide in August, with one in every 1,547 housing units receiving a filing. Nevada ranked second with a rate of one in 1,920 homes, and Florida was third at one in 2,397. Texas and Maryland also had high foreclosure rates.

Nationwide, one in every 3,569 housing units received a foreclosure filing in August. Rob Barber, CEO of ATTOM, noted that while the increase reflects a return to more normal foreclosure levels after several quiet years, rising costs are also impacting homeowners. "Homeowners are navigating a range of financial pressures, including higher insurance costs, borrowing costs and everyday living expenses, which could be adding strain to some household budgets," Barber said. He added, however, that overall foreclosure activity remains below pre-pandemic levels.

While foreclosure starts dipped 3% from July to 25,894 properties in August, they remained 7% higher than the previous year. Barber cautioned that starts and completed foreclosures represent different stages and do not always move in tandem. He stated that the data does not point to a specific factor for the sharper increase in completions but indicated that the current situation does not resemble the foreclosure crisis seen after the Great Recession.

For the first half of 2026, 227,548 U.S. properties received foreclosure filings, a 21% increase from the same period in 2025. Completed foreclosures rose 33% and foreclosure starts increased by 18% during that six-month period.