Florida, Texas, and California Lead the Nation in Foreclosure Starts

by Julie Gerstein

Foreclosure activity continued an upward trajectory in August, with data showing both monthly and annual increases—although foreclosures remain well below crisis levels.

Overall, 40,277 properties were involved in foreclosure filings in August—up 1% from July 2026 and 13% from August 2025—according to the August 2026 U.S. Foreclosure Market Report released by property data provider ATTOM. These properties either received default notices, were scheduled for auction, or were repossessed by banks.

“August’s data shows that foreclosure activity continues to trend above year-ago levels, particularly in completed foreclosures, which saw a notable annual increase,” said Rob Barber, CEO of ATTOM. He noted that “overall foreclosure volumes remain well below historical norms and the broader housing market continues to demonstrate resilience.”

On the state level, Florida led the nation in new foreclosure starts with 3,189 filings, followed closely by Texas with 3,126 starts and California with 2,565 starts. Illinois and Georgia rounded out the top five states for foreclosure starts, recording 1,192 and 1,189 starts, respectively.

Meanwhile, South Carolina, Nevada, and Florida had the highest per capita foreclosure rates. South Carolina had 1 filing for every 1,547 housing units, Nevada had 1 filing for every 1,920 housing units, and Florida saw a foreclosure start rate of 1 in every 2,397 housing units.

Texas and Maryland completed the top five states with the highest overall concentration of distress, recording 1 foreclosure filing for every 2,445 and 2,530 housing units, respectively. Nationally, 1 in every 3,569 housing units had a foreclosure filing in August 2026.

Among major metro areas with populations of at least 200,000, Columbia, SC, had the highest foreclosure rate in the country, with 1 foreclosure filing for every 1,232 housing units.

Punta Gorda, FL—the metro with the highest foreclosure rate in July—followed closely, with 1 filing for every 1,249 housing units. Spartanburg, SC, saw 1 foreclosure for every 1,262 units; Fayetteville, NC, had 1 for every 1,458 units; and Charleston, SC, had 1 for every 1,501 units.

Some metro areas recorded foreclosure declines, however. Among metropolitan areas with populations of at least 200,000 and at least 50 foreclosure starts, Cleveland saw the largest year-over-year decline, dropping from 281 starts in August 2025 to 175 in August 2026. Other notable metro areas seeing declines included Washington, DC; Providence, RI; Raleigh, NC; and Kansas City, MO.

A front door with a foreclosure notice on it — Overall, 40,277 properties were involved in foreclosure filings in August—up 1% from July 2026 and 13% from August 2025. (stock image) (Getty Images)

Meanwhile, bank repossessions—known as REOs or completed foreclosures—experienced the sharpest annual growth of any category in the August report. Lenders repossessed 5,794 properties, a 22% jump from July and a 42% increase from August 2025.

Texas led the nation in completed foreclosures with 1,835 bank repossessions, many of which occurred in the state’s major cities. Among major metropolitan statistical areas with populations over 200,000, Houston had 448 completed foreclosures, Dallas had 402, and San Antonio had 256.

California had the second-highest number of completed foreclosures, with 589 last month, including 138 in Los Angeles and 80 in San Francisco. North Carolina had 356, Arizona had 296, and Alabama had 286.

Despite these increases, industry experts emphasize that the broader housing market remains stable.

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