More homes are in danger of going into foreclosure—especially in certain cities that have had challenges ever since the last housing crisis in the late 2000s.

There were nearly 34,000 properties with foreclosure filings in August, according to a recent report from real estate data firm ATTOM. These included default notices, scheduled auctions, and bank repossessions in more than 3,000 counties across the country. That was up 7% from July but 2% lower than the same time last year.

Phrased another way, about 1 in every 4,113 homes had a foreclosure filing last month.

“For sure, foreclosure activity across the United States was up from July to August of this year,” ATTOM CEO Rob Barber says in a statement. “That could have been due to a jump in homeowners falling behind on their mortgages. Or, it could have been simply a timing thing, with banks and other lenders pursuing an accumulated batch of cases in August. That can easily happen, month to month. Either way, it is certainly a trend to watch in the coming months.”

Foreclosures were particularly high in Nevada. The state emerged as a flashpoint during the Great Recession, becoming one of the hallmarks of the foreclosure crisis. The housing market took years to recover after the influx of these vacant homes in the state.

However, real estate experts don’t anticipate another wave of foreclosures in Nevada—or anywhere else in the country. In the aftermath of the housing bubble, lenders have tightened the qualifications needed for borrowers to receive a loan. Today’s buyers are financially stronger and less likely to default on their loans.

Even if they lose a job and can’t pay their mortgage, many will be able to sell their home before a foreclosure is completed. Most will even walk away with some cash.

And unlike the last crash, there are now more buyers than there are homes for sale. That’s kept prices strong and is expected to do so even as foreclosures trickle onto the market.

“The improving pattern in annual [foreclosure filing] changes strongly suggest that a wave of foreclosures is not on the horizon, and the market has escaped dire predictions of huge foreclosure spikes after an estimated 2 million homeowners fell behind on their loans during the early part of the pandemic,” Barber says. “That makes sense, given positive economic measures like low unemployment, declining consumer price inflation, elevated homeowner equity, and an improving stock market. All those forces give households more resources and greater incentive to do whatever they can to avoid losing their homes to foreclosures.”

Which places have the highest foreclosure rates?

Nevada, one of the states hardest hit in the late-2000s housing crash, had the highest foreclosure rate in the nation. One in every 2,224 homes had a foreclosure filing in the state in August.

It was followed by Illinois, with 1 in every 2,433 homes; South Carolina, with 1 in every 2,506; New Jersey, with 1 in every 2,585; and Delaware, with 1 in every 2,618. Each of the top five states had about a 4% foreclosure rate, according to ATTOM’s data.

In August, Columbia, SC, had the highest foreclosure rate, at 6.8%, of any metropolitan area with at least 200,000 residents. It was followed by Fayetteville, NC, at 5.9%; Peoria, IL, at 5.7%; Las Vegas, at 5.6%; and Jacksonville, NC, at 5.4%.

Where are the most homes being repossessed?

Nationally, about 3,350 homes were repossessed by lenders in August. That was an increase of 1% from July but about 15% below the same time last year.

The year-over-year drop is likely due to the ending of the federal moratorium suspending foreclosures. The moratorium was put into place in the early days of the COVID-19 pandemic, in which millions of Americans quite suddenly lost their jobs. It ended in 2021 but was extended by many states. That led to more homeowners receiving foreclosure notices last year as moratoriums expired.

“The change in total foreclosure filings, measured year over year, has improved almost every month since December of 2022,” Barber says. “That was a positive sign for the housing market.”

In August of this year, Illinois had the most completed foreclosures, at 324. It was followed by Pennsylvania, at 253; Ohio, at 250; New York, at 205; and Texas, at 191.

Chicago was the big city with the most homes repossessed, at 192. New York City had the second most, at 166. Philadelphia trailed behind, with 9o; St. Louis had 76; and Detroit had 70.

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