Foreclosure activity continued to climb in July 2026, with 39,906 U.S. properties receiving foreclosure filings—default notices, scheduled auctions, or bank repossessions—up 1% from June and 10% from July 2025, according to ATTOM’s July 2026 U.S. Foreclosure Market Report released August 27. Foreclosure starts increased 10% year over year to 26,648 properties, while completed foreclosures rose 23% to 4,764, the sharpest annual jump in bank repossessions reported this year.
The data extends a broader pattern that has unfolded throughout 2026: foreclosure activity is rising steadily from historically low pandemic-era levels, driven in part by mounting financial pressure on homeowners facing surging property insurance premiums, rising property taxes, and higher escrow payments. Yet foreclosure activity remains relatively low by historical standards, and the increases suggest normalization rather than crisis, industry analysts say.
Nationwide, one in every 3,603 housing units had a foreclosure filing in July 2026. The trajectory mirrors the first half of the year, when 227,548 properties received foreclosure filings, up 21% from the same period in 2025 and 28% from 2024.
The numbers
Where foreclosures are rising fastest
Nevada, South Carolina, and Florida posted the highest foreclosure rates in the nation last month.
Nevada led the nation with one foreclosure filing for every 1,703 housing units in July—more than double the national rate. South Carolina ranked second with one filing per 2,085 housing units, followed by Florida at one per 2,232, Delaware at one per 2,579, and Texas at one per 2,653.
Among the nation’s largest metro areas, Punta Gorda, Florida, recorded the worst foreclosure rate in July with one filing for every 899 housing units. Killeen, Texas, followed with one in every 1,359 units, Las Vegas posted one in every 1,394, Vallejo, California, saw one in every 1,432, and Lakeland, Florida, recorded one in every 1,501. All five metros are located in the Sun Belt, an area disproportionately affected by rising property insurance premiums due to climate disasters.
By volume, Texas led the nation in foreclosure starts in July with 3,306 new filings, followed by Florida with 3,277, California with 2,540, Illinois with 1,243, and Georgia with 1,217.
Completed foreclosures by state
Texas recorded the most bank repossessions (REOs) in July with 1,265 properties, followed by California with 616, North Carolina with 299, Maryland with 272, and Virginia with 263. Among major metros, Houston had the most completed foreclosures with 405, followed by Dallas with 223, Baltimore with 164, Washington, D.C., with 131, and San Antonio with 128. You can view the full July 2026 report and state-by-state data on ATTOM’s official website.
What’s driving it
Rising costs squeeze homeowners with fixed-rate mortgages
Insurance premiums and property taxes are pushing monthly payments higher—even for borrowers who locked in low rates.
Rob Barber, CEO of ATTOM, said in a statement that “the increase in foreclosure starts and completed foreclosures compared to last year shows that financial pressures remain a factor for some homeowners.” But he emphasized that “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 pressure is not coming from mortgage interest rates alone. Mortgage delinquencies rose to 1.89% in the first quarter of 2026, up from 1.77% a year earlier, according to Federal Reserve data. But the root cause is often hidden in the escrow portion of the monthly payment. Even if you have a fixed-rate mortgage, higher property taxes and homeowners insurance premiums can increase your mortgage payment. When these costs go up, you pay more in escrow, though the principal and interest part of your mortgage payment stays the same.
Homeowners insurance accounted for 14% of the average monthly mortgage payment in 2025, up from 10% in 2013, according to analysis from the Federal Reserve Bank of Dallas. Homeowners insurance premiums rose by approximately 70% between 2019 and 2025. Research published by the Dallas Fed in March 2026 found that increases in annual insurance premiums raise the likelihood of falling behind and becoming delinquent on mortgage payments, and that premium increases pushed roughly 31,000 mortgages into delinquency in 2022.
In states where property taxes and homeowners insurance costs are rising the fastest, there has been a spike in the number of people who are delinquent on their mortgages, according to real estate analytics firm Cotality. For many homeowners who stretched their budgets to afford their original mortgage payment, a surprise escrow increase can create real financial jeopardy.
The foreclosure process timeline
Properties foreclosed in the second quarter of 2026 spent an average of 563 days in the process—the shortest timeline since 2013, down 2% from Q1 2026 and 13% lower than Q2 2025. Louisiana recorded the longest average at 3,491 days for homes foreclosed in Q2, followed by Hawaii at 2,293 days, New York at 2,007 days, Connecticut at 1,626 days, and Nevada at 1,507 days. The quickest states were Texas at 155 days, New Hampshire at 157 days, Wyoming at 173 days, West Virginia at 196 days, and Alaska at 199 days.
For buyers
What this means if you’re shopping for a home
Foreclosure inventory remains limited, but understanding the risks can protect your own finances.
Despite the uptick in foreclosures, foreclosure activity remains below pre-pandemic levels, suggesting the housing market remains relatively resilient even as some homeowners face financial pressures. For prospective buyers, this means distressed inventory is not flooding the market the way it did during the Great Recession. Foreclosed homes and short sales are not widely available in most markets, and competition for traditionally financed homes remains intense in many areas.
If you’re buying in Florida, Texas, California, Nevada, or South Carolina—the states with the highest foreclosure rates or volumes—pay close attention to your total monthly housing cost, not just the mortgage payment. Ask your lender for a detailed breakdown of property taxes, homeowners insurance, HOA fees, and any other escrow items. In high-risk areas for hurricanes, wildfires, or floods, insurance can add hundreds of dollars per month to your payment, and premiums can jump sharply at renewal.
Before you make an offer, get insurance quotes from at least three carriers. If you’re buying in a high-risk zone, ask whether the property is insurable in the private market or whether you’ll need to use a state-run insurer of last resort (like Florida’s Citizens or California’s FAIR Plan), which typically costs more and offers less coverage. Factor that real number into your budget. If the insurance cost pushes your total payment above what you can comfortably afford, walk away or negotiate a lower purchase price.
If you’re a first-time buyer or have limited savings, explore down payment assistance programs and zero-down loan options to preserve cash reserves. A healthy emergency fund can help you weather an unexpected escrow increase or insurance premium spike without missing a mortgage payment.
Quick answers
Foreclosures in 2026: common questions
Why are foreclosures rising if most people have low mortgage rates?
Most homeowners who bought or refinanced between 2020 and 2022 locked in historically low interest rates, which protects the principal and interest portion of their payment. But property taxes and homeowners insurance are part of the monthly mortgage payment too, collected through escrow. Those costs have surged—insurance premiums are up roughly 70% since 2019 in many markets—and even a fixed-rate borrower can see their total payment jump by hundreds of dollars per month when their escrow account is recalculated. For households that were already stretched thin, that increase can trigger a delinquency and eventually foreclosure.
Which states have the highest foreclosure rates right now?
Nevada had the highest foreclosure rate in July 2026, with one filing for every 1,703 housing units—more than double the national average. South Carolina ranked second (one in 2,085 units), followed by Florida (one in 2,232), Delaware (one in 2,579), and Texas (one in 2,653). By volume, Texas, Florida, and California had the most foreclosure starts, driven by their large populations.
Are foreclosures going to crash the housing market?
No. Foreclosure activity is rising from historically low levels, but it remains well below pre-pandemic norms and far below the levels seen during the 2008–2012 housing crisis. The current increases reflect a gradual return to more typical foreclosure patterns after years of pandemic-era forbearance programs and payment moratoriums. ATTOM’s CEO emphasized that the market remains “relatively resilient overall” despite the uptick.
How long does the foreclosure process take?
It varies widely by state. Properties foreclosed in the second quarter of 2026 spent an average of 563 days (about 18.5 months) in the process nationwide. But Louisiana averaged 3,491 days (more than nine years), while Texas averaged just 155 days (about five months). Judicial foreclosure states like New York, Hawaii, and Connecticut have much longer timelines than non-judicial states like Texas, Georgia, and California.
What should I do if I’m falling behind on my mortgage?
Contact your mortgage servicer immediately. Do not wait. Most servicers offer loss mitigation options including payment plans, loan modifications, forbearance, or repayment agreements that can help you avoid foreclosure. If you’re struggling because of an escrow increase, ask your servicer to review the calculation—errors do happen. You may also qualify for assistance through your state housing finance agency or a HUD-approved housing counseling agency (find one at HUD.gov). The earlier you act, the more options you’ll have.
Can I buy a foreclosed home at a discount?
Sometimes, but foreclosed homes (REOs) are not as common or as discounted as they were during the Great Recession. In July 2026, lenders repossessed 4,764 properties nationwide—a small fraction of the overall housing market. Many foreclosed homes are sold at auction or through real estate agents at prices close to market value, and they often need significant repairs. If you’re interested, work with a real estate agent experienced in REO properties and get a thorough home inspection before you buy.