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Overview of Foreclosures in 2025

The U.S. foreclosure landscape took a notable turn in 2025, according to ATTOM's Year-End Foreclosure Market Report, which documented an increase in various foreclosure activities across the nation. This comprehensive analysis encompasses default notices, scheduled auctions, and bank repossessions, revealing significant shifts in the housing market post-pandemic.

In total, 367,460 properties experienced foreclosure filings in the United States throughout 2025. This figure represents a 14% increase from the previous year and a 3% rise compared to 2023; however, it's important to note that it is a striking 25% decrease from the 2019 levels, before the pandemic transformed housing market dynamics. Additionally, 2025 foreclosure filings were 87% lower than the peak figure of nearly 2.9 million recorded in 2010.

Despite this increase, the percentage of housing units facing foreclosure remains modest, with only 0.26% of all U.S. housing units involved, up from 0.23% in 2024 but down from 0.36% in 2019. This indicates that while foreclosure activity is on the rise, it is still considerably below the levels observed during the crisis of the last decade. According to Rob Barber, CEO of ATTOM, this uptick in foreclosure activity is more indicative of market recalibration than widespread distress among homeowners. Strong equity positions and more disciplined lending practices have helped keep risk at bay in the housing market.

Detailed Breakdown of Foreclosure Activities

The report highlighted the geographical distribution of this increase in foreclosure initiations and repossessions. In 2025, lenders began the foreclosure process for 289,441 properties, representing a 14% rise from 2024. This number also marks a 213% increase from the pandemic-era low witnessed in 2021. However, it remains down 14% from 2019 figures and a staggering 86% less than the peak of 2,139,005 foreclosure starts observed in 2009.

The states that recorded the highest numbers of foreclosure initiations included Texas, with 37,215 starts; Florida, at 34,336; California with 29,777; Illinois at 15,010; and New York with 13,664 starts. Among metropolitan areas with populations exceeding one million, New York, Chicago, and Houston featured prominently in foreclosure starts, reflecting a troubling trend in some of the nation's largest urban environments.

In terms of bank repossessions, lenders reclaimed 46,439 properties through foreclosures in 2025, indicating a 27% increase from the previous year but still down 68% from the 143,955 in 2019. The states with the highest counts of repossessions were again Texas, California, Pennsylvania, Florida, and Illinois, with Chicago and New York leading the metropolitan areas.

Foreclosure Rates Across the Nation

Florida recorded the highest foreclosure rate, with 1 in every 230 housing units facing foreclosure filings, followed closely by Delaware and South Carolina. Other states experiencing high foreclosure rates included Illinois and Nevada, reflecting ongoing concerns regarding housing stability in certain regions.

Additionally, among metropolitan areas with populations greater than 200,000, Lakeland, Florida, had the worst foreclosure rate with 1 in every 145 units, followed by Columbia, South Carolina, and Cleveland, Ohio. These statistics underscore significant strain in these local markets, raising questions about broader economic implications.

Trends and Future Outlook

The average time to complete a foreclosure process has also seen a noteworthy decrease, falling to 592 days in Q4 2025, down 3% from the previous quarter and 22% lower than one year ago. States like Louisiana, New York, and Hawaii recorded the longest average foreclosure durations, highlighting variability in judicial processes across states.

In summary, the ATTOM Year-End 2025 Foreclosure Market Report reveals a complex landscape of increasing foreclosure activity, reflective of a market in transition. While the data indicates rising foreclosure starts and bank repossessions, the overall context reveals a significant decline from previous crisis levels. The current trends may suggest a normalization phase in the housing market, which will warrant ongoing monitoring as economic conditions evolve. With policymakers and market participants keenly observing these changes, the responses to increasing foreclosure rates could influence the next chapter of the U.S. real estate narrative.