August 18, 2025
Realtor.com/Getty Images
Agrowing number of U.S. homeowners are losing their properties because they cannot keep up with mortgage payments—with some states seeing drastically higher default rates than others.
In July, nearly 36,130 properties nationwide were hit with a foreclosure filing, up 13% from a year ago, and the steepest annual increase so far this year, according to the latest report from real estate data analytics firm ATTOM.
Put another way, 1 in every 3,939 housing units in the U.S. saw foreclosure activity last month, including default notices, scheduled auctions, and bank repossessions.
“July’s foreclosure activity continues to trend upward year over year, with increases in both starts and completions,” says Rob Barber, CEO of ATTOM. “While rising home prices are helping many owners maintain equity, the steady climb in filings suggests growing pressure in some markets.”
For context, 187,659 homes received a foreclosure filing during the first six months of the year, up 5.8% compared with the same period in 2024, signaling a growing financial distress among homeowners.
In a bit of good news, July saw the number of foreclosure completions—meaning property repossessions—tick down 1% from June, with 3,866 housing units being transferred from defaulted homeowners to lenders.
On an annual basis, however, foreclosure completions increased 18% in July compared with a year ago.
States seeing the most foreclosures
Nevada earned the distinction of leading the nation in foreclosure rates last month, with 1 in every 2,326 residential properties in the Silver State facing a default.
Florida clinched the unenviable No. 2 spot with a foreclosure filing rate of 1 in every 2,420 housing units, followed by Maryland (1 in every 2,566), South Carolina (1 in every 2,588), and Illinois (1 in every 2,727).
Nevada’s June rate was just slightly lower than July’s, at 1 in every 2,615 housing units facing foreclosure. That month, South Carolina topped the list of states with the most delinquencies, while Nevada came in second and Florida third.
So why are Nevada and Florida experiencing such a sharp rise in foreclosures this summer?
Realtor.com® senior economist Joel Berner says the surge in defaults in those states is closely tied to tourism.
“Florida and Nevada both have local economies that are heavily reliant on the tourism industry,” explains Berner. “Tourism tends to be volatile, and when economic growth slows as it has this year, that industry is often the first and most painfully impacted. Some homeowners in these states may be losing their jobs and becoming unable to make their mortgage payments.”
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