U.S. foreclosure activity increased in July 2026, with lenders starting more foreclosure proceedings and repossessing more properties than they did a year earlier. The rise points to continued financial pressure on some homeowners, even though the broader housing market remains well below the distress levels seen before the pandemic.
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 by ATTOM. The total was 1% higher than in June 2026 and 10% above July 2025.
The increase continues a wider trend of rising foreclosure activity over the past year. At the same time, high housing costs, expensive mortgage borrowing and uneven household finances are creating additional pressure for some homeowners across the country.
“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. He also noted that foreclosure activity remains relatively low compared with historical levels.
Florida, Nevada and South Carolina Face Higher Rates
Across the country, one in every 3,603 housing units had a foreclosure filing in July. However, the rate varied widely between states, with several markets experiencing much higher levels of activity.
Nevada recorded the highest foreclosure rate in the nation, with one filing for every 1,703 housing units. South Carolina followed with one filing for every 2,085 units, while Florida ranked third at one filing for every 2,232 housing units.
Delaware and Texas completed the five states with the highest foreclosure rates. Delaware recorded one filing for every 2,579 housing units, while Texas reported one for every 2,653 units.
At the metropolitan level, Punta Gorda, Florida, had the highest foreclosure rate among markets with populations of at least 200,000. The market recorded one foreclosure filing for every 899 housing units.
Punta Gorda was followed by Killeen, Texas, with one filing per 1,359 housing units. Las Vegas recorded one per 1,394, Vallejo, California, reported one per 1,432, and Lakeland, Florida, recorded one per 1,501.
Texas and Florida Lead Foreclosure Starts
Lenders initiated foreclosure proceedings on 26,648 U.S. properties in July. That represented a 2% increase from June and a 10% increase from the same month a year earlier.
Texas recorded the largest number of foreclosure starts, with 3,306 properties entering the process during July. Florida followed closely with 3,277 starts, while California recorded 2,540.
Illinois and Georgia also ranked among the states with the highest numbers of foreclosure starts. The two states recorded 1,243 and 1,217 starts, respectively, showing that foreclosure pressure remains concentrated in several large housing markets.
However, the increase was not seen everywhere. Some metropolitan areas experienced significant annual declines in foreclosure starts during the same period.
Among metropolitan areas with populations of at least 200,000 and at least 20 foreclosure starts, Tulsa, Oklahoma, recorded one of the sharpest declines. Foreclosure starts there dropped from 138 in July 2025 to 41 in July 2026.
Spokane, Washington, also recorded a notable decline, falling from 43 starts to 20. Fayetteville, North Carolina, dropped from 62 to 31, while Toledo, Ohio, declined from 98 to 49.
Greeley, Colorado, also saw foreclosure starts fall substantially. The number dropped from 47 in July 2025 to 24 in July 2026, highlighting the uneven nature of foreclosure trends across the country.
Completed Foreclosures Jump 23%
The number of properties actually repossessed by lenders remained elevated in July. Completed foreclosures, also known as real estate owned or REO properties, increased sharply from a year earlier.
Lenders took possession of 4,764 properties through completed foreclosures during the month. The total was essentially unchanged from June, but it was 23% higher than in July 2025.
Texas recorded the largest number of lender repossessions, with 1,265 REO properties. California followed with 616, while North Carolina recorded 299.
Maryland reported 272 lender repossessions, followed by Virginia with 263. These figures show that completed foreclosures remain concentrated in a relatively small group of states.
At the metropolitan level, Houston recorded the highest number of REOs among major markets, with 405 properties taken by lenders. Dallas followed with 223, while Baltimore recorded 164.
Washington, D.C., reported 131 REOs, and San Antonio recorded 128. As more properties move through the foreclosure process, these homes can eventually return to local housing markets as lender-owned inventory.
The increase in completed foreclosures is particularly important because it marks the stage when distressed properties move from delinquency and foreclosure proceedings into lender ownership. As a result, rising REO activity could create additional housing inventory in markets where foreclosure levels are already elevated.
Distress Is Rising, But No Crisis Yet
The July figures show a U.S. housing market in which foreclosure activity is gradually returning toward more normal levels after reaching unusually low levels during the pandemic.
Foreclosure filings increased 10% from a year earlier, while foreclosure starts also climbed 10%. Completed foreclosures recorded an even larger annual increase of 23%.
Still, the numbers remain below historical norms. According to ATTOM, the current level of foreclosure activity does not suggest a return to the widespread housing distress seen during the financial crisis of the late 2000s.
That distinction is important for homeowners, investors and other housing-market participants. Rising foreclosure activity can increase the supply of distressed properties and place pressure on home prices in vulnerable markets.
At the same time, additional distressed inventory could create opportunities for investors seeking properties below traditional market prices. However, the scale of the current increase remains far smaller than the foreclosure wave that accompanied the previous housing crisis.
For now, the July 2026 data suggest that financial stress is becoming more visible in the U.S. housing market. Yet the latest numbers point to a gradual normalization of foreclosure activity rather than a broad-based collapse.
The increase in U.S. foreclosure activity will be worth watching in the coming months, particularly as homeowners continue to face elevated borrowing costs and high housing expenses. For now, foreclosure levels are rising, but the national market has not reached crisis conditions.
