Lenders repossessed 5,794 U.S. homes in August 2026, up 22 percent from July and 42 percent from August 2025, according to ATTOM’s latest foreclosure report. Overall foreclosure filings—covering default notices, scheduled auctions, and completed repossessions—hit 40,277 properties. That was up 1 percent from the prior month and 13 percent from a year earlier, extending a months-long rise above 2025 levels.

Florida led in new foreclosure starts with 3,189, followed by Texas at 3,126 and California at 2,565. Illinois and Georgia rounded out the top five. Completed repossessions were heaviest in Texas, which recorded 1,835—more than three times California’s 589. North Carolina, Arizona, and Alabama followed. Among major metros, Houston saw 448 completed foreclosures, Dallas 402, and San Antonio 256.

South Carolina posted the nation’s highest foreclosure rate, with one filing for every 1,547 housing units. Nevada ranked second (one in 1,920), followed by Florida (one in 2,397), Texas (one in 2,445), and Maryland (one in 2,530). Nationwide, the rate was one filing per 3,569 housing units. New York ranked far lower, at 29th among states.

ATTOM CEO Rob Barber attributed part of the increase to the market returning toward more typical foreclosure levels after several unusually quiet years of pandemic-era forbearance and relief programs. He also pointed to higher insurance costs, borrowing costs, and everyday living expenses straining some budgets. “Even with those pressures, overall foreclosure activity remains below pre-pandemic norms,” Barber said, describing the pattern as pockets of financial stress rather than broad distress. Foreclosure starts actually dipped 3 percent from July to 25,894 but remained 7 percent higher than a year earlier.

The first half of 2026 showed the same direction: 227,548 properties received filings, up 21 percent from the same period in 2025, with completed foreclosures up 33 percent.

These figures remain well below Great Recession peaks. Lending standards are tighter, homeowner equity is far higher than in 2008–2010, and most distressed loans are working through residual pandemic distortions rather than a new systemic collapse. Still, the sharper rise in completed repossessions shows more borrowers who fell behind are now reaching the end of the process.

Higher insurance premiums—especially in coastal and high-litigation states—and elevated mortgage rates tied to the inflation fight continue to pressure households even when principal-and-interest payments are fixed. Property taxes and general living costs have added further strain. In places like Florida, insurance costs have been a documented driver of distress; state tort reforms have begun easing some rate pressure after years of lawsuit-driven spikes, though the effects are uneven. Texas’s high absolute numbers largely reflect its size, rapid population growth, and faster judicial timelines rather than uniquely severe distress.

The data indicate a gradual normalization after artificial suppression during the pandemic years, not a return to crisis conditions. Homeowners facing layered cost increases are the ones most exposed. Volumes remain modest by historical standards, and the broader market continues to show resilience, supported by stronger underwriting and substantial equity cushions.

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