Certain states and cities see sharp spikes in foreclosure rates
US foreclosure activity reached its highest point of the year in July, with filings rising 13% compared with the same month in 2024, according to ATTOM’s latest US Foreclosure Market Report. The data showed 36,128 properties with foreclosure filings—including default notices, scheduled auctions and bank repossessions—marking an 11% increase from June.
“July’s foreclosure activity continues to trend upward year-over-year, with increases in both starts and completions,” said Rob Barber, CEO at ATTOM. “While rising home prices are helping many owners maintain equity, the steady climb in filings suggests growing pressure in some markets.”
States with the highest foreclosure rates
Nationwide, one in every 3,939 housing units had a foreclosure filing in July. Nevada posted the highest rate, with one in every 2,326 housing units affected. Florida (one in 2,420), Maryland (one in 2,566), South Carolina (one in 2,588), and Illinois (one in 2,727) rounded out the top five.
Among metropolitan areas with populations over 500,000, Bakersfield, Calif., recorded the worst rate, with one in every 1,538 units in foreclosure. Other high-ranking metro areas included Cape Coral, Fla.; Lakeland, Fla.; Columbia, S.C.; and Deltona, Fla.
For metro areas with over 1 million residents, Houston, Texas, had the highest foreclosure rate at one in every 1,882 housing units, followed by Jacksonville, Fla.; Las Vegas, Nev.; Riverside, Calif.; and Cleveland, Ohio.
Foreclosure starts and completions
Lenders began foreclosure proceedings on 24,302 properties in July, an increase of 12% from June and 11% from a year ago. Texas led with 3,600 starts, followed by Florida (2,891), California (2,830), Illinois (1,177), and Ohio (1,029).
In large metro areas, Houston recorded the highest number of foreclosure starts at 1,406, ahead of Chicago, New York, Miami, and Dallas.
Lenders repossessed 3,866 properties through completed foreclosures in July—a 1% decline from June but an 18% jump from July 2024. Texas had the most repossessions at 377, followed by California (360), Florida (241), Michigan (236), and Illinois (223). Chicago, New York, Detroit, Houston, and Los Angeles topped the list among major metro areas.
The report is based on foreclosure filings from more than 3,000 counties, representing over 99% of the US population.
What are your thoughts on the latest findings? Share your insights in the comments below.
