U.S. Foreclosures Rise 17 Percent In Third Quarter Of 2025

Foreclosure activity across the United States rose 17 percent in the third quarter of 2025 compared to the same period last year, according to ATTOM’s latest U.S. Foreclosure Market Report.

The report found 101,513 properties with foreclosure filings during the third quarter, marking a slight quarterly increase of less than 1 percent. September saw 35,602 properties with foreclosure filings, down 0.3 percent from August but up 20 percent from a year ago.

“In 2025, we’ve seen a consistent pattern of foreclosure activity trending higher, with both starts and completions posting year-over-year increases for consecutive quarters,” said Rob Barber, CEO of ATTOM. “While these figures remain within a historically reasonable range, the persistence of this trend could be an early indicator of emerging borrower strain in some areas.”

A total of 72,317 properties began the foreclosure process during the quarter, a 2 percent increase from the prior quarter and up 16 percent from last year. Texas led the nation with 9,736 foreclosure starts, followed by Florida with 8,909 and California with 7,862. Major metro areas with the most filings included Houston (3,763), New York City (3,452), and Chicago (3,144).

Nationwide, one in every 1,402 housing units had a foreclosure filing in the third quarter.

Florida, Nevada, and South Carolina reported the nation’s highest foreclosure rates. In Florida, one in every 814 housing units had a foreclosure filing. Lakeland, Florida, recorded the highest metro foreclosure rate at one in every 470 homes.

Lenders repossessed 11,723 properties through completed foreclosures, up 4 percent from the previous quarter and 33 percent from a year ago. Texas again led with 1,288 repossessions, followed by California with 1,132.

Homes foreclosed in the third quarter spent an average of 608 days in the process, down 25 percent from last year. Louisiana recorded the longest foreclosure timeline at 3,632 days, while West Virginia had the shortest at 135 days.

Foreclosure activity continues to trend upward nationally, suggesting increasing financial strain among borrowers. ATTOM noted that while current levels remain lower than historic peaks, the steady rise across consecutive quarters indicates that market pressure may be building.