U.S. foreclosure activity increased in 2025, reflecting a continued normalization of the housing market after several years of historically low levels.
According to ATTOM’s Year-End 2025 U.S. Foreclosure Market Report, 367,460 properties nationwide had a foreclosure filing in 2025, including default notices, scheduled auctions and bank repossessions. That figure was up 14 percent from 2024 and up 3 percent from 2023, but still 25 percent below 2019 levels and far below the 2010 peak during the housing crisis.
Overall, foreclosure filings impacted 0.26 percent of all U.S. housing units, slightly higher than the 0.23 percent recorded in 2024.
“Foreclosure activity increased in 2025, reflecting a continued normalization of the housing market following several years of historically low levels,” said Rob Barber, CEO at ATTOM. “While filings, starts and repossessions all rose compared to 2024, activity remains well below pre-pandemic norms and far below the levels seen during the last housing crisis.”
Foreclosure Starts Increase
Lenders initiated foreclosure proceedings on 289,441 properties in 2025, up 14 percent from 2024.
States with the highest number of foreclosure starts included:
- Texas — 37,215
- Florida — 34,336
- California — 29,777
- Illinois — 15,010
- New York — 13,664
Among large metro areas, the most foreclosure starts were recorded in New York, Chicago, Houston, Miami and Los Angeles.
Bank Repossessions Rise Year Over Year
Lenders repossessed 46,439 properties in 2025, up 27 percent from 2024, though still significantly below levels seen before the pandemic and far below the peak during the last housing crisis.
States With the Highest Foreclosure Rates
States posting the highest foreclosure rates in 2025 were:
- Florida — 1 in every 230 housing units
- Delaware — 1 in every 240
- South Carolina — 1 in every 242
- Illinois — 1 in every 248
- Nevada — 1 in every 248
Among metropolitan areas with populations above 200,000, the highest foreclosure rates were reported in Lakeland, Florida; Columbia, South Carolina; Cleveland, Ohio; Cape Coral, Florida; and Atlantic City, New Jersey.
Activity Picks Up Late in the Year
Foreclosure activity also accelerated toward the end of the year. 111,692 properties had foreclosure filings in the fourth quarter of 2025, up 10 percent from the previous quarter and 32 percent from a year earlier.
In December alone, 44,990 properties had foreclosure filings, representing a 26 percent increase from the previous month and a 57 percent jump year over year.
Overall, the rise in foreclosure activity during 2025 appears to reflect a market gradually returning to more typical patterns rather than widespread homeowner distress.
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