U.S. Foreclosure Activity Shows Mixed Trends as May 2025 Reports a Drop in New Starts
The real estate landscape in the United States is showing a mixed set of indicators related to foreclosure activity for May 2025. According to the latest U.S. Foreclosure Market Report published by ATTOM, a premier data curator in land and property analytics, there was a slight decrease in overall foreclosure filings compared to the previous month. Specifically, a total of 35,498 properties faced foreclosure, which represents a 1% drop from April 2025, although it signifies a notable 9% increase year-over-year.
The foreclosures are classified into several categories, including default notices, scheduled auctions, and completed bank repossessions. A notable finding is that foreclosure starts, the initiation of the foreclosure process, declined by 4% from last month yet saw an 8% rise compared to last year.
Rob Barber, CEO of ATTOM, commented on this trend, indicating that while fewer new defaults are emerging, lenders are still managing pending cases from previous filings. This dual aspect of declining starts alongside rising completed foreclosures hints at a backlog of unresolved cases that lenders are working to finalize.
Delaware, Florida, and Illinois emerged as the states with the highest rates of foreclosure filings in May 2025. For every 2,313 housing units, Delaware recorded a foreclosure, while Florida and Illinois followed with one filing for every 2,536 and 2,668 units, respectively. The urgency in these states reflects ongoing economic pressures in various metropolitan areas.
Among the 110 metro statistical areas examined, Lakeland, FL topped the list with a staggering rate of one in every 1,506 housing units facing foreclosure filings. Other notable metro areas include Cape Coral, Jacksonville, Bakersfield, and Riverside, all experiencing high rates of foreclosure activity.
For major metropolitan areas exceeding a population of one million, Cleveland, San Antonio, and Chicago also reflected concerning figures, with filing rates around one in every 2,064 to 2,203 housing units.
In terms of foreclosure starts, lenders initiated the process for 24,165 properties, signaling a slowing down in new cases. However, states like Texas, Florida, and California accounted for the highest numbers of new foreclosure initiations. In Texas, 3,077 new starts were recorded, while Florida and California saw 2,780 and 2,641, respectively.
Conversely, completed foreclosures showed a different trend. In May 2025, lenders completed the repossession of 3,844 properties, marking a 7% increase from April and a 34% surge from May 2024. Texas once again led in completed foreclosures with 460, followed closely by California, Pennsylvania, Michigan, and Florida. Major cities like Chicago and New York also reported significant REO figures.
ATTOM's U.S. Foreclosure Market Report collates data regarding properties entering at least one stage of foreclosure during the month. Their extensive data collection spans more than 3,000 counties across the nation, providing insight into over 99% of the U.S. population. The report utilizes a unique ATTOM ID linked to various real estate documents, ensuring rigor and accuracy. This approach allows stakeholders to gain a comprehensive understanding of the foreclosure dynamics in play.
As foreclosure trends continue to shift, observers will need to stay vigilant regarding economic factors influencing this aspect of real estate. With fewer new starts but an ongoing rise in completed foreclosures, the future remains uncertain. Stakeholders, including investors and homeowners alike, are advised to keep a close watch on these evolving patterns. ATTOM promises to provide updates and further analysis as the months progress. This complicated interplay will be essential for interpreting future developments.
Understanding the Numbers
The foreclosures are classified into several categories, including default notices, scheduled auctions, and completed bank repossessions. A notable finding is that foreclosure starts, the initiation of the foreclosure process, declined by 4% from last month yet saw an 8% rise compared to last year.
Rob Barber, CEO of ATTOM, commented on this trend, indicating that while fewer new defaults are emerging, lenders are still managing pending cases from previous filings. This dual aspect of declining starts alongside rising completed foreclosures hints at a backlog of unresolved cases that lenders are working to finalize.
State-Specific Insights
Delaware, Florida, and Illinois emerged as the states with the highest rates of foreclosure filings in May 2025. For every 2,313 housing units, Delaware recorded a foreclosure, while Florida and Illinois followed with one filing for every 2,536 and 2,668 units, respectively. The urgency in these states reflects ongoing economic pressures in various metropolitan areas.
Among the 110 metro statistical areas examined, Lakeland, FL topped the list with a staggering rate of one in every 1,506 housing units facing foreclosure filings. Other notable metro areas include Cape Coral, Jacksonville, Bakersfield, and Riverside, all experiencing high rates of foreclosure activity.
For major metropolitan areas exceeding a population of one million, Cleveland, San Antonio, and Chicago also reflected concerning figures, with filing rates around one in every 2,064 to 2,203 housing units.
Foreclosure Starts and Repossessions
In terms of foreclosure starts, lenders initiated the process for 24,165 properties, signaling a slowing down in new cases. However, states like Texas, Florida, and California accounted for the highest numbers of new foreclosure initiations. In Texas, 3,077 new starts were recorded, while Florida and California saw 2,780 and 2,641, respectively.
Conversely, completed foreclosures showed a different trend. In May 2025, lenders completed the repossession of 3,844 properties, marking a 7% increase from April and a 34% surge from May 2024. Texas once again led in completed foreclosures with 460, followed closely by California, Pennsylvania, Michigan, and Florida. Major cities like Chicago and New York also reported significant REO figures.
Methodology of Reporting
ATTOM's U.S. Foreclosure Market Report collates data regarding properties entering at least one stage of foreclosure during the month. Their extensive data collection spans more than 3,000 counties across the nation, providing insight into over 99% of the U.S. population. The report utilizes a unique ATTOM ID linked to various real estate documents, ensuring rigor and accuracy. This approach allows stakeholders to gain a comprehensive understanding of the foreclosure dynamics in play.
Conclusion
As foreclosure trends continue to shift, observers will need to stay vigilant regarding economic factors influencing this aspect of real estate. With fewer new starts but an ongoing rise in completed foreclosures, the future remains uncertain. Stakeholders, including investors and homeowners alike, are advised to keep a close watch on these evolving patterns. ATTOM promises to provide updates and further analysis as the months progress. This complicated interplay will be essential for interpreting future developments.
Topics Financial Services & Investing）
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