Nationwide, foreclosures ticked up 1% month over month and 10% year over year.
Foreclosures continued to tick up last month, and foreclosure rates are highest in Nevada, South Carolina, and Florida.
Although foreclosures remain below 2019 levels, July's foreclosure count of 39,906 properties was up 1% from June and 10% from a year ago, according to the latest U.S. Foreclosure Market Report from real estate analytics firm ATTOM.
Nevada, South Carolina, and Florida saw the highest foreclosure rates in the nation last month.
Nationally, 0.03% of homes had a foreclosure filing last month, but Nevada's average was double that at 0.06%. In South Carolina, 0.05% of housing units had a foreclosure filing, and in Florida the rate was 0.04%.
These three states "have some characteristics that can make foreclosure activity more visible, but I think it’s important not to look at the foreclosure rate in isolation," says Mike Sibley, CPA and a partner at James Moore, an accounting and tax firm with offices across Florida.
"What’s really happening underneath the numbers is a combination of housing costs, affordability, local economic conditions, household cash flow, and how much financial pressure homeowners are carrying."
Homeowners in Florida have struggled recently with rising insurance premiums and falling home prices, increasing the risk of going underwater on a mortgage for owners who bought at peak prices.
"Homeowners have less room to absorb an unexpected job loss, higher mortgage payment, or other financial disruption," says Sibley.
The worst cities for foreclosures
Among major metropolitan areas with populations of 200,000 or more, Punta Gorda, FL, where the median listing price is $370,000, recorded the nation's highest foreclosure rate in July 2026, with 1 filing for every 899 housing units. Killeen, TX, followed with 1 in every 1,359 units, while Las Vegas saw 1 in every 1,394.
All three are located in the Sun Belt, an area disproportionately affected by rising property insurance premiums due to climate disasters. Additionally, cities reliant on tourism and hospitality—such as Las Vegas—tend to experience amplified financial strain during broader macroeconomic cooling periods or inflationary cycles, directly affecting household cash flow.
Meanwhile, Tulsa, OK, topped the list of cities with the greatest decline in foreclosures, dropping from 138 foreclosure starts in July 2025 to 41 in July 2026. Spokane, WA, saw a decrease from 43 to 20 foreclosure starts in the same period; and Fayetteville, NC, decreased from 61 foreclosure starts in July 2025 to just 31 this past month.
Completed foreclosures remain elevated
The U.S. recorded 4,764 completed foreclosures in July 2026, about on par with 4,773 in June 2026, but up 23% from July 2025, when lenders repossessed 3,866 properties.
At the state level, Texas had the highest number of completed foreclosures in July 2026, with 1,265 repossessions. Meanwhile, California (616) and North Carolina (299) ranked second and third, respectively.
Three of the top five cities with the most completed foreclosures were in Texas. Houston had 405, Dallas had 223, and San Antonio had 128. Baltimore, MD, with 164, and Washington, DC, with 131, rounded out the list.
Despite these annual increases, industry experts emphasize that the broader real estate market remains fundamentally resilient, with foreclosure volumes staying below pre-pandemic averages.
"The increase in foreclosure starts and completed foreclosures compared to last year shows that financial pressures remain a factor for some homeowners,” said Rob Barber, CEO at ATTOM. But "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."