According to the August 2025 U.S. Foreclosure Market Report from ATTOM, there were a total of 35,697 U.S. properties with foreclosure filings—defined as default notices, scheduled auctions, or bank repossessions—down 1% from a month ago, but up 18% from a year ago.
“August marked the sixth consecutive month of year-over-year increases in U.S. foreclosure activity and the third straight month with double-digit annual growth,” said Rob Barber, CEO at ATTOM. “While overall levels remain below those seen before the pandemic, the ongoing rise in both foreclosure starts and completions suggests that some homeowners may be experiencing added financial strain in the current high-cost and high-interest-rate environment.”
What a Difference a Year Makes …
ATTOM found that lenders repossessed 4,077 U.S. properties through completed foreclosures (REOs) in August 2025, an increase of 5% over July 2025’s totals, and an increase of 41% from last year.
States reporting the greatest number of REOs in August 2025, included:
- Texas (476 REOs)
- California (343 REOs)
- New York (319 REOs)
- Florida (276 REOs)
- Illinois (232 REOs)
Those major metropolitan statistical areas (MSAs) with a population greater than one million that saw the greatest number of REOs in August 2025 included:
- Chicago, Illinois (159 REOs)
- New York, New York (137 REOs)
- Houston, Texas (109 REOs)
- San Antonio, Texas (96 REOs)
- Dallas, Texas (79 REOs)
States Reporting the Worst Foreclosure Rates
ATTOM found that one in every 3,987 housing units had a foreclosure filing in August 2025. The states reporting the worst foreclosure rates were:
- Nevada (one in every 2,069 housing units with a foreclosure filing)
- South Carolina (one in every 2,152 housing units)
- Florida (one in every 2,512 housing units)
Among the 225 metropolitan statistical areas (MSAs) with a population of at least 200,000, those with the worst foreclosure rates in August were found in:
- Lakeland, Florida (one in every 1,212 housing units with a foreclosure filing)
- Columbia, South Carolina (one in every 1,347 housing units)
- Chico, California (one in every 1,545 housing units)
- Cleveland, Ohio (one in every 1,755 housing units)
- Ocala, Florida (one in every 1,816 housing units)
Major MSAs with a population greater than one million with the worst foreclosure rates in August 2025 besides Cleveland were found in:
- Las Vegas, Nevada (one in every 1,817 housing units)
- Jacksonville, Florida (one in every 2,057 housing units)
- Houston, Texas (one in every 2,195 housing units)
- Orlando, Florida (one in every 2,210 housing units)
Who Led the Nation in Foreclosure Starts?
Lenders started the foreclosure process on 24,254 U.S. properties in August 2025, down slightly at 0.2% from last month, but up 16.9% year-over-year. States reporting the greatest number of foreclosure starts in August 2025 included:
- Texas (2,982 foreclosure starts)
- Florida (2,803 foreclosure starts)
- California (2,558 foreclosure starts)
- New York (1,207 foreclosure starts)
- Illinois (1,170 foreclosure starts)
Those MSAs with a population greater than one million that had the greatest number of foreclosure starts in August 2025 included:
- New York, New York (1,431 foreclosure starts)
- Houston, Texas (1,178 foreclosure starts)
- Chicago, Illinois (1,009 foreclosure starts)
- Los Angeles, California (862 foreclosure starts)
- Miami, Florida (748 foreclosure starts)
What Lies Ahead?
ATTOM’s analysis of August data reveals a continued upward trend in foreclosure activity, marking the sixth consecutive month of year-over-year growth, and the third straight month of double-digit increases. A total of 35,697 U.S. properties had foreclosure filings during the month, representing an 18% increase compared to August 2024, despite a slight 1% decline from July 2025.
Both key components of foreclosure activity rose year-over-year: foreclosure starts jumped 17% to over 24,000 filings, while completed foreclosures (REOs) surged 41%, totaling more than 4,000 nationwide.
The future of foreclosure activity depends on whether or not overall economic strain will ease in the coming months.
The August Consumer Price Index (CPI) was released today, rising to 2.9% year-over-year, up 0.4% (seasonally adjusted) from last month.
“The tick up in headline inflation was driven by higher energy prices, as well as higher food costs (+0.6% MoM), which may reflect the impact of new tariffs,” said Realtor.com Senior Economist Jake Krimmel. “New (+0.3% MoM) and used car prices (+1.0% MoM) moved higher, as did home furnishings, all potentially tariff-sensitive categories. While it remains to be seen whether tariffs will result in a one-time jump or a more recurrent increase in price levels, their staggered rollout suggests effects will be felt across multiple reports rather than in a single month, making inflation data harder to interpret in real-time.”
The impact of tariffs is beginning to weigh on the nation’s economy as well.
“For the housing market, persistent inflation has two major implications: it erodes consumer purchasing power and puts upward pressure on mortgage rates, all else equal,” explained Krimmel. “Higher inflation means less money left over for saving toward a down payment, further straining affordability and reducing demand for homes. On the mortgage side, renewed inflationary pressures could keep borrowing costs elevated for longer, especially if the recent 11-month low in rates simply reflects a September Fed cut already priced in. Like the Fed, bond markets are weighing competing signals: softer jobs data that could pull long-run interest rates down versus firmer inflation that could push them up. For homebuyers and sellers, that uncertainty makes the path into the fall housing market less predictable, even if lower rates and easing uncertainty offer some relief. Home purchase sentiment has slipped, with more consumers expressing concern about job security and their financial outlook, but lower mortgage rates will continue to hold the key.”
Next week will be pivotal for the shape of the economy for the remainder of 2025 as the Federal Open Market Committee (FOMC) concludes its September meeting. It remains to be seen if Fed Chair Jerome Powell decides to drop the federal funds rate after five consecutive of keeping the rate steady at 4.25%-4.50%.
