Foreclosure activity up nearly 20% in October

Foreclosure activity in the U.S. surged nearly 20% year-over-year in October 2025, marking the eighth straight month of annual increases and highlighting a notable area of stress within the housing market. Lenders initiated foreclosure on 25,129 properties—up 20% from October 2024 and 6% from the prior month—while completed foreclosures (REOs) jumped 32% compared to last year.​

Foreclosure Data for October 2025

• Nationwide, 36,766 properties had foreclosure filings, including default notices, scheduled auctions, or bank repossessions.​

• The national foreclosure rate was one in every 3,871 housing units.​

• Florida led the nation with the worst state foreclosure rate (1 in every 1,829 homes), with major increases also observed in South Carolina, Illinois, Delaware, and Nevada.​

• Among large metro areas, Tampa, FL had the highest foreclosure rate at 1 in every 1,373 housing units.​

Factors Behind the Increase

• Rising housing costs, including surging insurance premiums, higher homeowners’ association (HOA) fees, and elevated interest rates, have intensified financial stress for many owners.​

• Many homeowners emerging from pandemic-era forbearance or relief programs are now struggling to resume full payments amid these increased costs.​

• The ongoing trend is viewed as a gradual normalization, but the persistence of economic headwinds and high mortgage rates continues to pressure financially vulnerable households.​

• While activity is rising, foreclosure levels remain significantly below historic highs seen during the last housing crisis.​

Regional Standouts

• Florida, Texas, and California had the highest raw number of foreclosure starts in October 2025.​

• The trend reflects broad-based affordability challenges across the Southeast, Midwest, and West due to higher ownership costs and borrowing rates.​

In summary, October 2025 saw a sharp, nearly 20% increase in foreclosure activity year-over-year, primarily driven by economic pressures on homeowners and the expiration of pandemic protections, with the highest rates concentrated in Florida and several other states.​