ATTOM’s U.S. foreclosure market report for August reveals foreclosure filings decreased 1% since the month prior, but are 18% higher than last year’s total.
For the month of August, there were a total of 35,697 properties with foreclosure filings including default notices, scheduled auctions and bank repossessions.
“August marked the sixth consecutive month of year-over-year increases in U.S. foreclosure activity and the third straight month with double-digit annual growth,” said ATTOM CEO Rob Barber. “While overall levels remain below those seen before the pandemic, the ongoing rise in both foreclosure starts and completions suggests that some homeowners may be experiencing added financial strain in the current high-cost and high-interest-rate environment.”
Although the average 30-year fixed-rate mortgage fell to 6.50% last week, rates remain relatively elevated—sparking debates as to whether the Federal Reserve will lower them further at its Federal Open Market Committee (FOMC) meeting next week.
Southern states lead the nation with the worst foreclosure rates. Nationwide, one in every 3,987 housing units had a foreclosure filing in August—or about 0.025%. Nevada had the worst rate of one in every 2,069 homes, or 0.048%. South Carolina and Florida followed suit both at one in every 2,152 housing units, or 0.046%.
Cities throughout the South and Midwest had even worse rates of foreclosure. Researchers examined 225 metropolitan areas with populations of at least 200,000, and found that the cities with the worst foreclosure rates were:
- Lakeland, Florida: one in every 1,212 (0.082%)
- Columbia, South Carolina: one in every 1,347 (0.074%)
- Chico, California: one in every 1,545 (0.065%)
- Cleveland, Ohio: one in every 1,755 (0.057%)
- Ocala, Florida: one in every 1,816 (0.055%)
Each of these cities had a foreclosure rate that was worse than the national average. Excluding Cleveland, cities with populations greater than 1 million and the worst foreclosure rates in August were:
- Las Vegas, Nevada: one in every 1,817 (0.055%)
- Jacksonville, Florida: one in every 2,057 (0.049%)
- Houston, Texas: one in every 2,195 (0.046%)
- Orlando, Florida: one in every 2,210 (0.045%)
As with other reports and trends, data from Texas, Florida and California indicate a struggling housing market. In a recent report from Homes.com, California had the highest average home price in the nation at $1.5 million.
A similar trend is apparent in the number of foreclosure starts for August. The report states that, “Lenders started the foreclosure process on 24,254 U.S. properties in August 2025, down slightly at 0.2% from last month but up 16.9% from a year ago.”
Texas had the greatest number of foreclosure starts for August at 2,982. It was followed by Florida (2,803), California (2,558), New York (1,207) and Illinois (1,170). Major cities with populations greater than 1 million in each of these states had significant portions of foreclosure starts:
- New York, New York: 1,431
- Houston, Texas: 1,178
- Chicago, Illinois: 1,009
- Los Angeles, California: 862
- Miami, Florida: 748
In August alone, lenders repossessed 4,077 properties through foreclosures—also known as REOs—which is a 5% increase since July. It is also a 41% increase compared to August of last year.
The same states with the greatest number of foreclosures also had the highest number of REOs: Texas (476), California (343), New York (319), Florida (276) and Illinois (232).
Chicago, New York and Houston had the greatest number of REOs for cities with populations greater than 1 million. Other Texas cities in the top five were San Antonio and Dallas.
Foreclosure activity continues upward as August marked the sixth consecutive month of year-over-year growth and the third straight month of double-digit increases, according to the report. Supported by ATTOM’s latest housing risk report, Southern states will likely continue to see struggling homeowners and a divided market.
For the full report, click here.
