ATTOM’s July 2025 U.S. Foreclosure Market Report found that there were a total of 36,128 U.S. properties with foreclosure filings in the month of July—default notices, scheduled auctions or bank repossessions—a total up 11% month-over-month from June 2025, and up 13% year-over-year.
“July’s foreclosure activity continues to trend upward year-over-year, with increases in both starts and completions,” said Rob Barber, CEO at ATTOM. “While rising home prices are helping many owners maintain equity, the steady climb in filings suggests growing pressure in some markets.”
Where Is the Greatest Number of Foreclosure Starts Found?
The report found that lenders began the foreclosure process on 24,302 U.S. properties in July 2025, up 12% from June 2025, and up 11% year-over-year. States reporting the greatest number of foreclosure starts in July 2025 included:
- Texas (3,600 foreclosure starts)
- Florida (2,891 foreclosure starts)
- California (2,830 foreclosure starts)
- Illinois (1,177 foreclosure starts)
- Ohio (1,029 foreclosure starts).
Those major metropolitan areas with a population greater than one million that reported the greatest number of foreclosure starts in July 2025 included:
- Houston, Texas (1,406 foreclosure starts)
- Chicago, Illinois (1,117 foreclosure starts)
- New York, New York (1,003 foreclosure starts)
- Miami, Florida (920 foreclosure starts)
- Dallas, Texas (751 foreclosure starts)
Tracking Foreclosures by State
Nationwide, one in every 3,939 housing units had a foreclosure filing in July 2025. States with the worst foreclosure rates included:
- Nevada (one in every 2,326 housing units with a foreclosure filing)
- Florida (one in every 2,420 housing units)
- Maryland (one in every 2,566 housing units)
- South Carolina (one in every 2,588 housing units)
- Illinois (one in every 2,727 housing units)
Among the 110 metropolitan statistical areas (MSAs) with a population of at least 500,000, those with the worst foreclosure rates in July 2025 were found in:
- Bakersfield, California (one in every 1,538 housing units with a foreclosure filing)
- Cape Coral, Florida (one in every 1,735 housing units)
- Lakeland, Florida (one in every 1,802 housing units)
- Columbia, South Carolina (one in every 1,803 housing units)
- Deltona, Florida (one in every 1,818 housing units)
Major MSAs with a population greater than one million reporting the worst foreclosure rates in July 2025 were:
- Houston, Texas (one in every 1,882 housing units)
- Jacksonville, Florida (one in every 1,893 housing units)
- Las Vegas, Nevada (one in every 1,914 housing units)
- Riverside, California (one in every 1,921 housing units)
- Cleveland, Ohio (one in every 2,030 housing units)
Foreclosure Completions Tail Off
ATTOM found that lenders repossessed 3,866 U.S. properties through completed foreclosures (REOs) in July 2025, a slight decrease of just 1% from June 2025, but an increase of 18% year-over-year. States that reported the greatest number of REOs in July 2025, included:
- Texas (377 REOs)
- California (360 REOs)
- Florida (241 REOs)
- Michigan (236 REOs)
- Illinois (223 REOs)
Those major MSAs with a population greater than one million that saw the greatest number of REOs in July 2025 included:
- Chicago, Illinois (139 REOs)
- New York, New York (120 REOs)
- Detroit, Michigan (101 REOs)
- Houston, Texas (95 REOs)
- Los Angeles, California (77 REOs)
Employment Trends Driving Delinquencies?
In tracking the monthly and annual rises in foreclosures, the July jobs report showed further labor market moderation, with job growth slowing to a net gain of just 73,000, and unemployment rising to 4.2%. The healthcare and social assistance industries reported the biggest job gains, while the government shed workers.
As the nation continues to wrestle with affordability concerns, a steady labor market fueling income growth is necessary to curb the rise in foreclosures and delinquencies.
One factor playing into the equation is the continued downward fall in mortgage rates, as Freddie Mac reports the 30-year fixed-rate mortgage (FRM) at 6.58% for the week ending August 14, 2025, down from last week when it averaged 6.63%. A year ago at this time, the 30-year FRM averaged 6.49%.
“Mortgage rates fell to their lowest level since October,” said Sam Khater, Freddie Mac’s Chief Economist. “Purchase application activity is improving as borrowers take advantage of the decline in mortgage rates.”
A favorable rate environment has also propelled an upward trend in mortgage application volume, as the Mortgage Bankers Association (MBA) reported a 10.9% week-over-week rise in app volume.
The downward trend in rates has sparked interest in mortgage refinances, with refi activity increasing to 46.5% of total applications, up from 41.5% the previous week, while the adjustable-rate mortgage (ARM) share of activity increased to 9.6% of total applications.
“Given the relative attractiveness of ARM rates compared to fixed rate loans, ARM applications increased 25% to their highest level since 2022, and the ARM share of all applications was almost 10%,” said Joel Kan, MBA’s VP and Deputy Chief Economist.
Click here for more on ATTOM’s examination of July 2025 foreclosure trends.
