Foreclosure Filings Increase 10% Year-Over-Year in July, Reports ATTOM

In a recent report by ATTOM, foreclosure filings in the United States have risen significantly, with July 2023 recording a total of 39,906 filings. This marks a 10% increase compared to the same month last year and a 1% increase from June 2023. The data highlights a continuing trend of rising foreclosure activity, which is important for various stakeholders in the real estate market.

Understanding Foreclosure Filings

Foreclosure filings refer to the legal process by which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments. This process can lead to the sale of the property at auction, often at a price lower than market value. The increase in filings can indicate financial distress among homeowners, which can have broader implications for the housing market.

Year-Over-Year and Monthly Trends

The 10% year-over-year increase in foreclosure filings is notable, particularly as it reflects ongoing economic challenges faced by many homeowners. The slight rise of 1% from June to July suggests that the trend may be stabilizing at a higher level of foreclosure activity. Furthermore, the report indicates that real estate-owned (REO) properties, which are homes that have been foreclosed and are now owned by the lender, saw a remarkable increase of 23% from July 2025. This surge in REOs could signal a backlog of properties that lenders are now beginning to process and sell.

Implications for Home Buyers

For home buyers, the increase in foreclosure filings may present new opportunities in the market. As more properties enter the foreclosure process, buyers might find homes available at lower prices compared to traditional listings. However, potential buyers should be aware that purchasing a foreclosure can come with its own set of challenges, including property condition issues and the need for thorough due diligence.

Impact on Sellers

Sellers in the current market may face increased competition from foreclosures. As more homes become available through foreclosure sales, sellers might find it more challenging to sell their properties at desired prices. This could lead to a shift in pricing strategies and a need for sellers to be more flexible in negotiations.

Opportunities for Real Estate Investors

Real estate investors may view the rise in foreclosure filings as a chance to acquire properties at discounted rates. However, investors should approach this market segment with caution. The increase in foreclosures can indicate underlying economic issues, and investors must conduct thorough research to assess the potential risks and rewards associated with these properties. Additionally, the rise in REOs suggests that lenders are becoming more active in selling foreclosed properties, which could lead to a more competitive environment for investors.

Conclusion

The rise in foreclosure filings reported by ATTOM underscores a significant shift in the housing market landscape. As the number of foreclosures increases, it is essential for home buyers, sellers, and investors to stay informed and adapt their strategies accordingly. Understanding the implications of these trends can help stakeholders navigate the evolving real estate market effectively.