U.S. Foreclosure Activity Posts Eighth Straight Month Of Year-over-year Increases

U.S. foreclosure activity has posted its eighth consecutive month of year-over-year increases through October 2025, signaling a sustained upward trend as homeowners continue to face pressure from elevated housing and borrowing costs.​

Key Trends and Statistics

• In October 2025, one in every 3,871 housing units in the U.S. had a foreclosure filing.​

• Foreclosure starts in October rose nearly 20% compared to October 2024, with lenders initiating the process on 25,129 U.S. properties, up 6% from September 2025.​

• Completed foreclosures (REOs) in October totaled 3,872, up 2% from the previous month and 32% from the previous year.​

• The trend of year-over-year increases in foreclosures has now reached eight consecutive months, marking a “gradual normalization” compared to the lows seen during the pandemic recovery, though levels remain well below historic highs.​

Regional Breakdown

• The states with the highest number of foreclosure starts in October 2025 were:

  • Florida (4,136)

  • Texas (3,080)

  • California (2,685)

  • Illinois (1,252)

  • New York (1,165)​

• Florida continues to lead in overall foreclosure rates, with one in every 2,182 housing units filing for foreclosure in September 2025.​

Broader Context

• For Q3 2025, 72,317 U.S. properties started the foreclosure process, up 16% from the prior year.​

• Nationwide, the ongoing increase in both foreclosure starts and completions suggests the possibility of increasing financial strain for some homeowners, attributed to high home prices and interest rates.​

• Despite these increases, foreclosure activity remains well below the peaks observed during the 2008–2010 foreclosure crisis.​

This persistent trend indicates that foreclosure activity is gradually rising as market conditions adjust, likely as a result of inflation, higher rates, and broader economic instability affecting homeowners