Foreclosure Activity Dropped in August

A total of 30,227 residential properties had foreclosure filings in August, according to new data from ATTOM. This is down 5.3% from July and down 11% from August 2023.

Nationwide, one in every 4,662 housing units had a foreclosure filing last month. The states with the highest foreclosure rates were Nevada (one in every 2,473 housing units with a foreclosure filing); Florida (one in every 2,605 housing units); Illinois (one in every 2,837 housing units); South Carolina (one in every 2,877 housing units); and New Jersey (one in every 3,227 housing units).

Lenders started the foreclosure process on 20,747 residential properties in August, down 5.1% from July and down 9.4% from August 2023. Lenders repossessed 2,889 residential properties through completed foreclosures in August, down 12% from previous month and down 13.9% from one year earlier.

“Foreclosure activity has remained relatively steady in recent months, with both foreclosure starts and completed foreclosures declining in August,” said Rob Barber, CEO at ATTOM. “While overall activity is significantly lower than the peaks seen during the 2008 financial crisis, when filings exceeded 300,000 per month, the current economic environment, coupled with rising interest rates and affordability challenges, suggests a continued focus on potential housing market instability.”