Just over 3,300 properties were repossessed by lenders in July, according to a recent report by real estate data firm ATTOM. That number is up 4 per cent from June and 9 per cent from a year ago.

However, the number of completed foreclosures may not have risen much due to a drop in the number of homeowners receiving foreclosure notices.Nearly 32,000 properties were filed for foreclosure nationwide in July, about one in every 4,380 housing units. That number is down 12 percent from June and 2 percent from a year ago.

Filings included default notices, scheduled auctions and bank repossessions.

ATTOM CEO Rob Barber said in a statement, "We're seeing a slight decline in foreclosure filings, which is another sign that the housing market is rebounding."

As home prices have rebounded, a combination of factors has put more money in the hands of homeowners, providing more options for avoiding foreclosure.

Homeowners who can't afford their mortgage payments can still decide to sell their property and avoid foreclosure. Since home prices are so high, many people are likely to profit from the sale of their property. This is the opposite of what happened during the Great Recession, when home prices plummeted, foreclosures proliferated, and many homeowners learned they owed more than their homes were worth.

Before anyone panics, it's worth noting that part of the reason for this uptick was the federal moratorium on foreclosures during the COVID-19 pandemic. Now that those moratoriums have been lifted, lenders can proceed with foreclosures that have been pending for years.

Where are the most homes in foreclosure?

Lenders repossessed the most homes in Illinois, where homeowners lost 355 properties in July. This was followed by Pennsylvania (230), California (217), Michigan (200) and Texas (200).

Of all the metropolitan areas with more than 1 million residents, Chicago had the highest number of foreclosures.

Where are homeowners most at risk of losing their homes?

Some areas of the United States are more prone to foreclosure than others. Maryland has the highest foreclosure rate, with one in every 2,071 housing units receiving a foreclosure filing. New Jersey was next, followed by Delaware, Illinois and South Carolina.

Among metropolitan areas with at least 200,000 residents, Fayetteville, N.C., had the highest foreclosure rate in July. Rounding out the top five, in order, were Atlantic City, New Jersey; Columbia, South Carolina; Trenton, New Jersey; and Cleveland.

On the other hand, the largest drop in the number of homeowners receiving foreclosure notices was in Hawaii. Hawaii had the largest decline, followed by New Hampshire, Idaho, Arkansas and Alabama.