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Overview of U.S. Foreclosure Activity

According to ATTOM's recent report on the U.S. housing market, the month of October 2025 has witnessed a significant rise in foreclosure activity. This increase marks the eighth straight month of year-over-year growth, highlighting ongoing challenges within the real estate sector. There were a total of 36,766 properties with foreclosure filings, which include default notices, scheduled auctions, and bank repossessions. This reflects a 3% increase from September and a 19% rise compared to the same month last year.

Key Insights from ATTOM's Report

Rob Barber, the CEO of ATTOM, attributed the ongoing increase in foreclosure activity to the gradual normalization of the market as homeowners adjust to higher housing and borrowing costs. Despite the surge in activity, it’s essential to note that current numbers remain considerably lower than historical highs, suggesting that the market is still in an adjustment phase.

Breakdown of Foreclosure Statistics

• - Foreclosure Starts: Highlights a 20% year-over-year increase, with 25,129 properties entering the foreclosure process in October 2025, up from previous months.
• - Completed Foreclosures: The report noted the completion of 3,872 foreclosures in the same month, up 32% from last year, indicating a significant rise in repossessions as lenders become more aggressive in the recovery of delinquent loans.

Regional Variations in Foreclosure Rates

When analyzing the geographical data, certain states exhibit notably higher foreclosure rates. Florida leads with one in every 1,829 housing units facing foreclosure filings, followed by South Carolina and Illinois. Below are the states with the most alarming statistics:

• - Florida: 4,136 foreclosure starts
• - Texas: 3,080

overall starts

• - California: 2,685

In comparison, major metropolitan areas with populations of over a million that experienced the highest foreclosure rates include Tampa, FL, which recorded the most significant rate at one in every 1,373 housing units. However, it is essential to note that Tampa's numbers are skewed due to the resumption of data collection in the area, expected to stabilize in the upcoming months.

Positive Developments in Some Areas

Interestingly, not all regions are experiencing an upward trend in foreclosures. Cities such as Milwaukee, Indianapolis, and Louisville have seen a substantial decrease in foreclosure starts over the past year. This can be viewed as a positive development, indicating improved economic conditions in these metropolitan areas.

What Lies Ahead for the Housing Market?

The findings suggest that while foreclosure activity is rising, it may not indicate a larger housing crisis but rather a cooling off after an unprecedented boom in the real estate market. Homeowners, particularly those who are struggling, face challenging conditions as market prices and interest rates continue to rise. Consequently, the combination of these factors is likely to lead to sustained levels of foreclosure activity.

In conclusion, ATTOM's October 2025 U.S. Foreclosure Market Report reveals a notable uptick in foreclosure filings, signaling ongoing stress in the housing market rooted in higher costs and economic conditions. As trends continue to evolve, stakeholders within the real estate market will need to keep a close watch on future reports to better understand the implications for homeowners and investors alike.