Foreclosure activity continued its steady climb in July 2026, with lenders repossessing 4,764 properties nationwide—a 23% jump from July 2025, according to data released yesterday by ATTOM, the nation’s leading property data provider. Total foreclosure filings, which include default notices, scheduled auctions, and completed repossessions, reached 39,906 properties, up 10% year-over-year.
Texas dominated the foreclosure landscape, claiming three of the top five metro areas for completed repossessions and leading all states with 1,265 bank-owned properties in July. The surge reflects mounting financial pressure on some homeowners as elevated insurance costs, property taxes, and everyday expenses strain household budgets—even when mortgage payments themselves remain unchanged.
Despite the increases, ATTOM emphasized that foreclosure activity remains well below pre-pandemic norms, suggesting the housing market is gradually returning to historical patterns rather than entering crisis territory.
The numbers
Bank repossessions surge 23% as foreclosure starts rise
Lenders initiated more proceedings and completed more foreclosures than a year ago
ATTOM’s July 2026 U.S. Foreclosure Market Report, released August 27, shows 39,906 U.S. properties had foreclosure filings in July 2026, up 1 percent from June and 10 percent from a year ago. Foreclosure filings include any property that received a default notice, was scheduled for auction, or was repossessed by a lender during the month.
Foreclosure starts increased 10 percent year over year to 26,648, while completed foreclosures (REOs) rose 23 percent to 4,764, extending a pattern of annual increases that began in 2022 as pandemic-era protections expired. The 23% spike in REOs—properties that lenders have taken ownership of after foreclosure—represents the sharpest increase among all foreclosure categories.
Nationwide, one in every 3,603 housing units had a foreclosure filing in July 2026. Nevada led the nation with one foreclosure filing for every 1,703 housing units, followed by South Carolina, Florida, Delaware, and Texas.
July 2026 foreclosure data at a glance
39,906 total properties with foreclosure filings (up 10% year-over-year)
26,648 foreclosure starts (up 10% from July 2025)
4,764 completed foreclosures/REOs (up 23% from July 2025)
1 in 3,603 housing units nationwide had a foreclosure filing
Data covers filings entered in July 2026 from more than 3,000 counties representing over 99% of the U.S. population
Where it’s happening
Texas metros dominate completed foreclosures
Houston, Dallas, and San Antonio led major cities in bank repossessions
Texas led all states with 1,265 REOs in July 2026, followed by California (616 REOs), North Carolina (299 REOs), Maryland (272 REOs), and Virginia (263 REOs). Texas’s dominance stems partly from its fast-moving foreclosure process—the state uses a nonjudicial foreclosure system that averages just 155 days, the shortest timeline in the nation.
Among metropolitan areas with populations above 200,000, Houston recorded 405 REOs, Dallas had 223, Baltimore had 164, Washington, D.C., had 131, and San Antonio had 128. Three of the top five cities are in Texas, underscoring the state’s outsized role in the national foreclosure landscape.
For foreclosure starts—the first step in the process—Texas led the nation with 3,306 foreclosure starts in July 2026, followed by Florida (3,277), California (2,540), Illinois (1,243), and Georgia (1,217). These five states account for nearly half of all new foreclosure proceedings nationwide.
By foreclosure rate, Punta Gorda, Florida, recorded the worst rate among major metros, with one filing for every 899 housing units, followed by Killeen, Texas (one in 1,359), Las Vegas (one in 1,394), Vallejo, California (one in 1,432), and Lakeland, Florida (one in 1,501). If you’re buying in Texas, Florida, or Nevada, understanding local foreclosure trends can help you spot distressed inventory opportunities.
The bigger picture
What’s driving the increase—and what it means for buyers
Rising ownership costs are straining budgets even when mortgage payments stay flat
ATTOM CEO Rob Barber noted that “the increase in foreclosure starts and completed foreclosures compared to last year shows that financial pressures remain a factor for some homeowners. However, the broader context is important. Foreclosure activity remains relatively low by historical standards. While annual increases have become more common, current volumes indicate that the market remains relatively resilient overall.”
The rise isn’t driven by a wave of risky mortgages like the 2008 crisis. Instead, industry analysts point to “a mix of financial pressure and continued normalization after several years of unusually low foreclosure activity. Higher taxes, insurance, and everyday household costs are making it harder for some borrowers to recover once they fall behind, even when the mortgage payment itself has not changed”, according to Mirza Hodzic of BlackWolf Advisory Group.
Homeowners insurance premiums have climbed for five straight years, particularly in Florida and coastal markets exposed to climate risks. Property taxes have risen sharply in fast-growing metros. Inflation has increased the cost of groceries, utilities, and transportation. For households already stretched thin, a job loss or unexpected expense can quickly turn a manageable situation into a foreclosure filing.
For buyers, rising foreclosure activity can mean more distressed inventory entering the market, potentially at discounts. REO properties—homes the bank now owns—are often sold below market value to clear inventory quickly. If you’re shopping for a mortgage or exploring affordability strategies, foreclosed homes can offer savings, though they typically require cash or renovation financing and come with risks like deferred maintenance.
Context: Still below pre-pandemic levels
Despite the 23% annual jump in completed foreclosures, foreclosure activity remains below pre-pandemic norms. For the first half of 2026, 227,548 U.S. properties had foreclosure filings, up 21 percent from the same period a year ago and 28 percent from two years ago. Most analysts describe the current environment as a return to historical patterns rather than a crisis. Homeowners today hold record levels of equity, giving them options—like selling or refinancing—that weren’t available during the Great Recession.
What to do
Steps for homeowners and buyers
How to respond if you’re facing pressure or looking for opportunities
If you’re a homeowner feeling financial strain: Don’t wait until you miss multiple payments. Contact your servicer immediately to explore loss mitigation options like forbearance, loan modification, or repayment plans. Many servicers offer programs specifically for borrowers facing temporary hardship. If your situation is more permanent, selling before foreclosure starts protects your credit and gives you control over the timeline. Homeowners with equity can often sell and walk away with cash, avoiding foreclosure entirely.
If you’re a buyer looking at foreclosures: REO properties and pre-foreclosure listings can offer discounts, but they require due diligence. Inspect thoroughly—foreclosed homes are often sold as-is with deferred maintenance. Budget for repairs. Understand that competition can be fierce in hot markets, and cash buyers often have an advantage. Work with a real estate agent experienced in distressed properties, and make sure your financing is lined up before you make an offer.
Check your total housing cost: Even if you’re current on your mortgage, audit your full monthly housing expense—mortgage, insurance, taxes, HOA fees, and maintenance. If insurance or taxes have spiked, check your escrow account for shortfalls that could trigger a payment jump. Proactive planning now can prevent problems later.
First-time buyers and those with limited savings should explore down payment assistance programs and zero-down loan options that can ease upfront costs. If your credit score is a concern, see our guide on buying with bad credit for strategies to improve your position.
Quick answers
Foreclosure trends: common questions
Are foreclosures at crisis levels in 2026?
No. While foreclosure filings are up 10% year-over-year and completed foreclosures rose 23% in July 2026, activity remains well below the levels seen during the 2008–2012 housing crisis. ATTOM and most housing analysts describe the current trend as a gradual return to historical norms after several years of artificially low activity due to pandemic-era moratoriums and forbearance programs. Homeowners today also hold record levels of equity, giving them more options to avoid foreclosure than borrowers had during the Great Recession.
Why is Texas leading the nation in foreclosures?
Texas leads in both foreclosure starts and completed repossessions for several reasons: it’s the second-largest state by population, it uses a fast nonjudicial foreclosure process (averaging just 155 days, the shortest in the U.S.), and its major metros—Houston, Dallas, San Antonio—have seen rapid growth and rising property taxes. The speed of the foreclosure process means properties move from default to bank ownership faster in Texas than in judicial foreclosure states like Florida or New York, where timelines can stretch years.
What’s causing foreclosures to rise if mortgage rates were low for most homeowners?
The increase isn’t about mortgage payments—it’s about the total cost of homeownership. Homeowners insurance premiums have climbed for five consecutive years, especially in Florida and other climate-exposed states. Property taxes have risen sharply in fast-growing metros. Inflation has increased the cost of groceries, utilities, and transportation. For households stretched thin, these rising costs—combined with job losses or unexpected expenses—make it harder to stay current even when the mortgage payment itself hasn’t changed.
Should I buy a foreclosed home to save money?
Foreclosed homes (REOs) can offer discounts—sometimes 20% to 30% below market value—but they come with risks. They’re typically sold as-is, often with deferred maintenance or damage. You’ll need a thorough inspection, a budget for repairs, and financing that allows for renovations (many conventional lenders won’t finance homes needing significant work). Cash buyers have an advantage. If you’re prepared for the challenges, foreclosures can be a path to affordability, but they’re not a shortcut—they require expertise, patience, and capital.
Which states have the highest foreclosure rates right now?
By foreclosure rate (the share of housing units with a filing), Nevada had the worst rate in July 2026 at one in every 1,703 housing units, followed by South Carolina (one in 2,085), Florida (one in 2,232), Delaware (one in 2,579), and Texas (one in 2,653). By sheer volume, Texas, Florida, and California lead due to their large populations. For metro areas, Punta Gorda, Florida, had the highest rate (one in 899 units), followed by Killeen, Texas, and Las Vegas.
How long does the foreclosure process take?
It varies dramatically by state. Texas has the fastest process at an average of 155 days from start to completion. At the other extreme, Louisiana averages 3,491 days, Hawaii 2,293 days, and New York 2,007 days. Nationally, the average timeline in Q2 2026 was 563 days—the shortest since 2013. Nonjudicial foreclosure states (like Texas, California, and Georgia) move much faster than judicial states (like Florida, New York, and New Jersey), where court approval is required at each step.