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Foreclosure Activity Rises in February 2025

In the latest U.S. Foreclosure Market Report released by ATTOM, the month of February 2025 has shown some noteworthy developments in foreclosure activity across the U.S. According to the data presented, a total of 32,383 properties experienced foreclosure filings that month, representing a 5 percent increase from January, although this figure shows a 1.7 percent decrease compared to the same month last year.

Analysis of Foreclosure Trends

Rob Barber, CEO of ATTOM, remarked on these findings, stating, "February's rise in foreclosure filings suggests evolving market pressures. While some increase may reflect seasonal trends, the uptick in foreclosure starts — both monthly and annually — points to potential shifts in the market. We will keep an eye on the economic factors that will influence future foreclosure activity."

Interestingly, despite the increase in foreclosure starts, the number of completed foreclosures (REOs) went down to 3,031 properties in February, marking a nearly 11 percent drop from the same time last year. This decline in completions is consistent with the downward trend noted in 12 out of the last 13 months.

States such as New York and South Carolina saw significant annual declines in REOs, with drops of 49 percent and 44 percent, respectively. Other states that recorded substantial decreases included New Jersey, Pennsylvania, and Ohio. This suggests that while initiation of foreclosure processes has become more frequent, the actual completion of these processes remains low, indicating a possible shift towards more leniency in handling foreclosures.

Regional Analysis

Among the largest metropolitan statistical areas with substantial populations, the cities witnessing the highest numbers of REOs included Chicago, IL (154), Houston, TX (101), St. Louis, MO (91), Detroit, MI (87), and Philadelphia, PA (78).

At the state level, the highest foreclosure rates were notable in Delaware, where one in every 2,278 housing units faced a foreclosure filing, followed closely by Illinois and Nevada. MSA areas suffering the most from foreclosure filings included Modesto, CA and Lakeland, FL, drawing attention to regions that may be under financial pressure or experiencing higher rates of mortgage delinquency.

Foreclosure Starts Increase

In contrast to the decline in REO completions, foreclosure starts saw an uptick, with 22,730 properties entering the foreclosure process in February, an 8 percent increase from January and a 1 percent increase year over year. Notable states showing significant monthly increases in foreclosure starts included New Jersey (up 78 percent), Colorado (up 58 percent), and Iowa (up 57 percent).

Main metropolitan areas such as New York, NY (with 1,387 foreclosure starts), Chicago, IL (1,367), and Houston, TX (1,050) continued to be at the forefront of foreclosures initiated in February.

Understanding the Data

The ATTOM report methodology involves collecting property data from over 3,000 counties nationwide, representing more than 99 percent of the U.S. population. The report includes various types of foreclosure filings such as Notices of Default (NOD), Notice of Trustee Sale, and properties that have been foreclosed and seized by banks (REO). This comprehensive approach provides a clearer picture of the foreclosure landscape across the country.

With such contrasting data trends between increases in filings and decreased completions, stakeholders, investors, and economists alike are left to navigate through these changing dynamics of the U.S. housing market, making adjustments accordingly as they observe the unfolding patterns in mortgage and foreclosure activities.

As ATTOM continues to gather data, the insights extracted from these reports will remain crucial for understanding local and national housing market trends that could impact future economic conditions. The ongoing data analytics and property insights provided by ATTOM reflect its commitment to enhancing transparency and accessibility in real estate information.