Foreclosure Starts Surged by 14% Year-Over-Year

A total of 38,840 residential properties had foreclosure filings during February, down 4% from the prior month but up 20% from one year earlier.

According to data from ATTOM, lenders started the foreclosure process on 25,928 residential properties last month, down 2% from January but up 14% from February 2025. Lenders repossessed 4,077 residential properties through completed foreclosures (REOs) in February, down 14% from the previous month but up by 35% from one year earlier.

One in every 3,701 housing units had a foreclosure filing in February. States with the worst foreclosure rates were Indiana (one in every 1,597 housing units with a foreclosure filing); South Carolina (one in every 2,217 housing units); Florida (one in every 2,277 housing units); Delaware (one in every 2,443 housing units); and Illinois (one in every 2,590 housing units).

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