Foreclosure Activity Is Almost Back To Pre-Pandemic 2019 Levels

Foreclosure activity in the United States has rebounded sharply and is almost back to the levels seen in the pre-pandemic year of 2019, although it still remains slightly below those figures as of Q3 2025. Recent data indicates foreclosure filings are just 15% below pre-pandemic norms, showing a strong recovery from the historic lows reached during 2020-2021 when emergency programs and forbearance measures froze much of the market.​

Current Trends and Numbers

• In Q3 2025, more than 101,000 properties had foreclosure filings, representing a 17% year-over-year increase.​

• Foreclosure starts, or the beginning of the foreclosure process, have seen a 16% increase compared to last year, while bank repossessions (REOs) have surged by 33%.​

• The average time to complete a foreclosure has dropped to about 608 days, which is 25% faster than last year, suggesting distressed properties are moving through the system more rapidly.​

• Regions with the highest rates include Florida, Texas, California, Illinois, and New York, pointing to broad affordability and financial strain across the country.​

Comparison to Pre-Pandemic Levels

• At the height of the pandemic, foreclosure activity was suppressed by as much as 85% compared to Q3 2019; now, it is only about 15% below that benchmark.​

• The pandemic-era buffers—like mortgage forbearance programs—have ended, and persistent economic factors such as inflation and higher interest rates are leading more homeowners into financial hardship and foreclosure.​

• Current foreclosure rates are up 20% from last year, edging closer to historical averages and suggesting a normalization of the market after an extended period of decline.​

Key Drivers

• Rising inflation and elevated interest rates have increased monthly payments for many borrowers, reducing affordability.​

• The end of widespread economic relief and home insurance issues, especially in states like Florida and California, are creating additional strain.​

Foreclosure activity is now nearing its pre-2020 levels after several quarters of consistent increases, and analysts expect these higher rates to persist as market conditions remain challenging.