Foreclosure climb deepens as pressure builds on vulnerable borrowers

Indiana, South Carolina and Florida posted the highest state foreclosure rates, with Indiana seeing one filing for every 1,597 housing units.

At the metro level, Lakeland, Florida recorded one foreclosure filing for every 1,075 homes, ahead of other hotspots including Punta Gorda and Indianapolis.

Normalization or early warning sign

“Foreclosure activity in February marked the twelfth consecutive month of annual increases, extending a gradual upward trend that began early last year,” Rob Barber, CEO at ATTOM, said.

“While filings dipped slightly from January, both foreclosure starts and completed foreclosures remain higher than a year ago. Even with the continued rise, overall foreclosure levels remain well below historic norms.”

Barber already framed the shift as a slow turn in ATTOM’s year-end 2025 foreclosure report, noting that “foreclosure activity increased in 2025, reflecting a continued normalization of the housing market following several years of historically low levels,” and that filings still sat far below pre-crisis peaks.