Bank repossessions jump 42% in August as U.S. foreclosure filings stay elevated

By Dr. Hamid Rowshan
Choice of America

Completed foreclosures jumped 42% year over year to 5,794 in August as U.S. filings reached 40,277 — still below pre-pandemic norms, per ATTOM.

Lenders took back thousands more homes in August than a year earlier, according to property-data firm ATTOM. Completed foreclosures—bank repossessions, or REOs—rose sharply, while overall filing volumes stayed well below pre-pandemic levels.

The national picture

ATTOM’s August 2026 U.S. Foreclosure Market Report counted 40,277 U.S. properties with a foreclosure filing during the month. That total includes default notices, scheduled auctions, and bank repossessions. Filings were up 1% from July and 13% from August 2025. Nationwide, one in every 3,569 housing units received a filing in August.

The sharpest annual move was at the end of the pipeline. Lenders repossessed 5,794 properties through completed foreclosures in August, up 22% from July and 42% from a year earlier. Foreclosure starts—when a lender first begins the process—moved more modestly: 25,894 starts in August, down 3% from the prior month but still 7% higher than August 2025.

August sits on a busier first half. ATTOM’s Mid-Year 2026 report counted 227,548 U.S. properties with a filing from January through June, up 21% from the first half of 2025. Starts rose 18% to 164,566, and completed foreclosures climbed 33% to 27,983—higher from recent lows, yet still below pre-pandemic norms, per ATTOM.

Where activity concentrated

By raw starts, Florida led in August with 3,189 foreclosure starts, followed by Texas (3,126) and California (2,565). Illinois (1,192) and Georgia (1,189) rounded out the top five.

Completed foreclosures told a different geographic story. Texas alone accounted for 1,835 REOs in August—far ahead of California’s 589—followed by North Carolina (356), Arizona (296), and Alabama (286). Among major metro areas, Houston (448), Dallas (402), and San Antonio (256) posted the most bank repossessions, with Phoenix (186) and Baltimore (167) next.

Measured by rate rather than volume, the highest state foreclosure rates in August were in South Carolina (one filing for every 1,547 housing units), Nevada (one in 1,920), Florida (one in 2,397), Texas (one in 2,445), and Maryland (one in 2,530). Among metros with at least 200,000 residents, Columbia, South Carolina; Punta Gorda, Florida; Spartanburg, South Carolina; Fayetteville, North Carolina; and Charleston, South Carolina posted the highest rates.

California and Southern California

California ranked third nationally in foreclosure starts and second in completed foreclosures in August, according to ATTOM. The state recorded 2,565 starts and 589 REOs. On a rate basis, California ranked 15th among states: one filing for every 3,291 housing units, based on 4,450 filings against roughly 14.6 million housing units. That was down about 2.7% from July but up about 8.3% from August 2025.

ATTOM’s August state breakdown listed Lake, Madera, Sutter, and Mendocino as California’s highest-rate counties—none in the five-county Southern California area Choice of America serves. The public August release did not list Los Angeles, Riverside–San Bernardino, San Diego, or Orange County among the national top-five REO metros, which were led by Texas and Southwest markets.

In the first half of 2026, ATTOM counted 21,543 California properties with a filing (about one in every 680 housing units, up roughly 13% from a year earlier), 16,040 starts, and 2,644 completed foreclosures. For Orange, Los Angeles, Riverside, San Bernardino, and San Diego counties, the national REO jump is a reminder that California remains a high-volume state—not a signal of a 2008-style crisis.

What may be driving the rise

ATTOM has pointed to normalizing foreclosure processes after quieter pandemic-era years, plus household pressure from insurance, borrowing costs, and everyday expenses. Starts and completions often diverge because completions reflect cases that began months earlier. Even with year-over-year gains, ATTOM still describes overall activity as below pre-pandemic norms—more pockets of stress than broad distress.

For homeowners under pressure

If mortgage payments are becoming hard to sustain, early contact with the loan servicer is usually the first practical step. HUD-approved housing counselors can also help borrowers review options at little or no cost; the Consumer Financial Protection Bureau maintains a ZIP-code search for counselors, and HUD offers referral lines for local agencies. This article is general market information only—not legal, tax, or financial advice. Outcomes depend on the loan, equity position, and timing under California’s foreclosure rules.

For buyers considering REO or bank-owned homes

A higher national REO count can mean more bank-owned listings over time, but REOs often sell as-is, with longer timelines and different disclosure practices than a typical owner-occupied sale. Southern California buyers should compare REOs with conventional and short-sale inventory, budget for inspections and repairs, and work with a local agent familiar with bank-owned deals.

For sellers

Sellers in Orange, Los Angeles, Riverside, San Bernardino, and San Diego counties still compete on price, condition, and presentation versus nearby sold comps—not national foreclosure headlines. Elevated REO activity elsewhere does not automatically cut every local list price, but it is another reason to price to current neighborhood data.

At Choice of America, we help Southern California buyers and sellers put national foreclosure data in local context—street by street and county by county.

Choice of America · Los Angeles County real estate

Dr. Hamid Rowshan, DRE #02004794, company DRE #02240008. Choice of America. Call or text 833-THIS-BROKER (833-842-7465).