The U.S. foreclosure market continued its steady climb in the first half of 2025, with foreclosure filings increasing nearly 6 percent year-over-year, according to ATTOM’s Mid-Year 2025 Foreclosure Market Report. A total of 187,659 properties across the country had foreclosure filings—including default notices, scheduled auctions, or bank repossessions—marking a 5.8 percent rise from the same period in 2024.
Foreclosure starts, a key metric signaling financial distress among homeowners, surged 7 percent year-over-year. The report also noted a decrease in the average time to complete a foreclosure, now falling for the third consecutive quarter.
Rising Foreclosure Rates by State and Metro
States showing the sharpest increases in foreclosure activity compared to a year ago include Alaska (+55%), Rhode Island (+51%), Wyoming (+46%), Utah (+46%), and Colorado (+41%).
While the national foreclosure rate stands at 0.13% (one in every 758 housing units), states with the highest rates in the first half of the year were Illinois, Delaware, and Nevada—all hovering around 0.23%. Other high-rate states included Florida and South Carolina.
Metropolitan areas hit hardest included Lakeland, FL (0.29%), Columbia, SC (0.28%), and Chicago, IL (0.26%). These markets lead a list of 225 metro areas with over 200,000 residents.
Foreclosure Starts and REOs Increase
In total, 140,006 properties entered the foreclosure pipeline in the first half of the year—up significantly from 2024 and a striking 41% increase compared to the same period in 2020. Texas led all states in foreclosure starts (17,680), followed by Florida, California, Illinois, and New York.
Lender repossessions also trended upward. There were 21,007 completed foreclosures (REOs) nationwide, a 12% jump from the prior year, though still 7% below 2023 levels. Texas and California topped the list for most completed foreclosures.
Foreclosure Timelines Shorten
On average, it took 645 days to complete a foreclosure in Q2 2025, a 4% drop from the previous quarter and a 21% improvement over last year. Louisiana recorded the longest average foreclosure timeline at 3,612 days, while Wyoming boasted the shortest at just 125 days.
Q2 and June 2025 Highlights
The second quarter alone saw 100,687 properties with foreclosure filings—a 7% quarterly increase and 13% rise from Q2 2024. South Carolina, Illinois, and Florida had the highest state-level foreclosure rates.
June 2025 closed the quarter with notable trends:
- One in every 4,361 U.S. housing units had a foreclosure filing.
- South Carolina, Nevada, and Florida had the worst monthly rates.
- Foreclosure starts in June dropped 10% from May but were up 17% compared to June 2024.
- Completed foreclosures in June rose 35% year-over-year.
Conclusion
Though national foreclosure activity remains below pre-pandemic levels, ATTOM CEO Rob Barber emphasized the significance of the trend: “The persistent rise suggests that some homeowners are still facing financial challenges amid today’s housing and economic landscape.”
To learn more and access more detailed data or get the data behind the stories, contact one of ATTOM’s data experts.