Home Foreclosures Have Skyrocketed 18% Since August 2024. Is There Another Housing Crisis On the Horizon?
A new report from ATTOM says home foreclosures have skyrocketed 18% from 12 months ago. Tens of thousands of homeowners are now facing the legal process of losing their homes.
ATTOM says that in August, there were a total of 35,697 U.S. properties with some type of active foreclosure. This includes initial filings and default notices. It also includes scheduled auctions or bank repossessions. For those that don’t know ATTOM is a leading curator of land, property data, and real estate analytics. That figure was down 1% from July but up 18% compared with August of last year. Rob Barber, CEO at ATTOM told the media:
“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. 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.”
Foreclosure is the legal mechanism by which a lender repossesses a property after a borrower defaults. The lender can then sell the property to recoup unpaid loan balances.
The rise in foreclosures is playing out against a housing backdrop where affordability remains strained.
Realtor.com’s August 2025 Monthly Housing Trends Report states the national median list price was $429,990. This figure is unchanged from last year but down 2.2% from July. However, Realtor.com says this is typical for late summer.
The price per square foot also remained steady. It has only increased by just 0.1%.
However, affordability has deteriorated significantly compared with pre-pandemic levels.
Since August 2019, the typical list price has climbed 36.1%. However, the price per square foot is up 51.3%.
