Nearly 40,000 US Property Foreclosures Were Filed in July

In July, 39,906 properties across the United States filed for foreclosure, up 1 percent from June and 10 percent from a year ago.

One in every 3,603 housing units nationwide submitted a foreclosure filing last month, according to an Aug. 27 report from real estate analytics company ATTOM.

Nevada had the highest foreclosure rate, followed by South Carolina, Florida, Delaware, and Texas.

In metro areas with populations of 200,000 or more, Punta Gorda, Florida, had the highest foreclosure rate, with filings submitted for one in 899 housing units.

This was followed by Killeen, Texas; Las Vegas, Nevada; Vallejo, California, and Lakeland, Florida.

Nationwide, foreclosure starts and completions were both up from a year ago.

“The increase in foreclosure starts and completed foreclosures compared to last year shows that financial pressures remain a factor for some homeowners,” Rob Barber, CEO at ATTOM, said in the statement.

“However, the broader context is important. 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.”

July’s higher foreclosure filings continue the trend from the first half of 2026, when filings rose by 21 percent from the same period last year, according to ATTOM.

Mortgage rates have remained elevated over the past several years, putting pressure on homeowners’ finances.

Since September 2022, the weekly average rate on a 30-year fixed-rate mortgage has consistently remained at or above the 6 percent level, except for a brief dip in late February this year, according to data from Freddie Mac.

In a July 2026 report, financial services company Truework said that mortgage payments were forcing many recent homeowners into financial risk.

The findings were based on a survey of 1,000 Americans who bought a home in the previous 24 months.

In the survey, 85 percent of homebuyers with a mortgage said that refinancing within the next three years is important to maintaining their financial health, up from 56 percent in a 2025 survey.

In the recent poll, 50 percent said their mortgages would become unsustainable unless the rates dropped.

In addition, 40 percent said they would have to get a second job if they’re unable to refinance their mortgages in three years.

Almost nine out of 10 said a common financial setback could jeopardize their ability to pay the monthly mortgage amount.

Truework said that many recent homebuyers bought properties when mortgage rates were between 6 and 7 percent, without expecting the rate or monthly payment to remain elevated.

“We’re calling this ‘Conditional Affordability’: a payment that works today, but only through continued financial sacrifice, and long-term finances that depend, at least in part, on a future rate drop,” the report said.

“How much a buyer’s finances depend on rates falling often predicts financial strain better than income, age, or first-time buyer status, making rate expectations a signal worth watching even for buyers who look financially secure on paper.”

As rates and monthly payments remain high and strain homebuyers, it is more likely that foreclosures will increase in the near future.

Meanwhile, for homebuyers who may be under financial pressure and are looking to sell their properties, the current housing market may not be conducive to getting the highest possible price for their homes.

Demand for homes is declining, according to an Aug. 27 report from real estate brokerage Redfin.

A decline in demand can result in lower negotiating power for a seller.

Potential buyers are sitting on the sidelines due to elevated home prices and mortgage rates.

Some are waiting to see if mortgage rates dip over the coming months, while others are avoiding the market due to economic uncertainty, the report said.

“Sellers should resist the urge to price based on what a neighbor got a year or two ago: Pricing a home correctly from the start can be the difference between attracting a serious buyer and lingering on the market,” said Chen Zhao, Redfin’s head of economics research.