---
title: US Foreclosures Rose Again in July but Stayed Near Historic Lows
description: US foreclosure filings rose 10% year over year in July 2026 but remain historically low, with distress concentrated in a few states and FHA and VA loans.
author: Darie Nani (Editor-in-Chief)
updated: 2026-08-27T19:19:34.819Z
canonical: https://richdadmagazine.com/article/us-foreclosures-july-2026-still-historic-lows
image: https://cdn.nanimediahouse.com/us-housing-foreclosure-market-215800.webp
categories: Real Estate
content_type: News
region: United States
publication: Rich Dad Magazine
schema_type: Article
---

Foreclosure filings went up again in July, and the year-over-year number looks steep at first glance. ATTOM, the property data firm, reported 39,906 U.S. homes with a foreclosure filing in July 2026, counting default notices, scheduled auctions, and bank repossessions. That was up 1% from June and up 10% from a year earlier.

That increase is rising off a very low floor. For most of the years since 2020, foreclosure activity was held down by pandemic-era protections and forbearance programs, which kept filings far below normal. The increases showing up now are largely a return toward that normal level, not a swing back toward 2008. Nationally, just 1 in every 3,603 housing units had a foreclosure filing in July, still a small slice of the market.

The mid-year picture tells the same story. ATTOM counted 227,548 properties with foreclosure filings in the first half of 2026, up 21% from the same stretch of 2025, and described the shift as [normalizing levels of mortgage distress](https://www.housingwire.com/articles/us-foreclosures-rise-2026-midyear-attom-report/) rather than a fresh emergency. The average foreclosure now takes 563 days to work through the system, the lowest on record. In a real crisis, backlogs stretch those timelines out; they do not shorten them.

> "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."
> — Rob Barber, CEO of ATTOM

## Where the Distress Is Concentrated

The national rate hides a lot of spread. By foreclosure rate, Nevada led in July at 1 in every 1,703 housing units, followed by South Carolina at 1 in 2,085 and Florida at 1 in 2,232. Delaware and Texas rounded out the top five.

The metro numbers are sharper. Punta Gorda, Florida had the highest rate among metros with at least 200,000 people, at 1 in 899 units, followed by Killeen, Texas at 1 in 1,359, Las Vegas at 1 in 1,394, and Vallejo, California at 1 in 1,432. By raw count of new foreclosure starts, Texas and Florida led with 3,306 and 3,277, and California followed at 2,540. Those are big states with big housing stocks, so the counts run high, but the rate rankings show the pressure is genuinely heavier across the Sun Belt.

It is not moving one way everywhere. Several metros saw starts fall hard from a year ago. Tulsa, Oklahoma dropped from 138 starts to 41, Toledo, Ohio from 98 to 49, and Spokane, Washington from 43 to 20. A rising national number can sit on top of a lot of local improvement.

## The Loan Type Behind Much of the Rise

The mid-year data points to one clear source of stress: government-backed mortgages. ATTOM tied much of the increase to higher trouble in FHA and VA loans, which tend to serve buyers who put less money down and carry thinner cushions. Conventional borrowers who built up equity over the last few years are in a different position. With the 30-year fixed rate sitting around 6.84%, homeowners who bought or refinanced at lower rates have little reason to walk away, and plenty of equity to sell into if they need out.

If you own in Nevada, Florida, Texas, or one of the metros above, expect more listings and a bit more negotiating room as distressed homes move through. If you hold an FHA or VA loan and money is tight, this is the moment to call your servicer about a loan modification before a missed payment starts the clock, because the process moves faster now than it used to. And if you are a small investor, the deals will show up in specific markets and specific loan books, not across the board.

## FAQ

**Q: Is this like the 2008 foreclosure crisis?**
No. The 2008 crisis saw foreclosure filings many times higher, with timelines stretching for years as courts and lenders were overwhelmed. July 2026 saw under 40,000 filings, roughly 1 in 3,603 homes, and average timelines have fallen to 563 days, the lowest on record. Completed repossessions were up 23% from a year ago but still numbered only 4,764 for the month. The direction is up; the scale is not comparable.

**Q: What is a foreclosure start versus a completed foreclosure?**
A foreclosure start is the point where a lender formally begins the process after missed payments, with a default notice or a scheduled auction. There were 26,648 of those in July. A completed foreclosure, or REO, is when the bank takes the property back at the end of the process. Many starts never reach that stage, because the owner sells, refinances, or works out a modification first.