U.S. homeowners face growing financial pressure as the number of properties lenders repossessed jumped 42% year over year in August, signaling increased strain among some borrowers facing foreclosure, Realtor.com reports.
Lenders repossessed 5,794 properties through completed foreclosures in August, up 22% from July and 42% from August 2025, according to real estate data firm ATTOM. Overall, 40,277 U.S. properties received a foreclosure filing, including default notices, scheduled auctions, and bank repossessions. That was up 1% from July and 13% from a year earlier.
Texas recorded the most completed foreclosures, with 1,835, followed by California with 589, North Carolina with 356, Arizona with 296, and Alabama with 286. Among major metropolitan areas, Houston led the nation with 448 completed foreclosures, followed by Dallas with 402 and San Antonio with 256.
South Carolina had the nation’s highest foreclosure rate, with one in every 1,547 housing units receiving a filing. Nevada followed at one in 1,920, while Florida ranked third at one in 2,397. Nationwide, one in every 3,569 housing units received a foreclosure filing in August.
Foreclosure proceedings were initiated on 25,894 properties, down 3% from July but up 7% from August 2025. Florida recorded the most foreclosure starts with 3,189, followed by Texas with 3,126 and California with 2,565.
ATTOM CEO Rob Barber said homeowners continue to contend with financial pressures, including higher insurance and borrowing costs and elevated everyday expenses. Despite the increases, the data does not necessarily signal a return to the widespread housing distress seen during the Great Recession.
Foreclosure activity remains below pre-pandemic levels, according to ATTOM, with Barber describing the current market as experiencing pockets of financial strain rather than widespread distress.
Still, the August figures extend a broader upward trend in 2026. During the first half of the year, 227,548 U.S. properties received foreclosure
filings, up 21% from the same period in 2025. Completed foreclosures increased 33%, while foreclosure starts rose 18%, underscoring the mounting financial challenges facing some homeowners even as overall foreclosure activity remains historically contained.RELATED CONTENT: Research Shows Foreclosure Activity Is Up—Here’s Why