Residential Real Estate News
U.S. Foreclosure Filings Jump 17 Percent Annually in Q3 Signaling Borrower Strain
Florida, Nevada Lead the Nation in Foreclosure Rates
Foreclosure activity in the U.S. continued its upward climb in the third quarter of 2025, suggesting that pockets of borrower distress may be emerging.
New data from ATTOM's Q3 2025 U.S. Foreclosure Market Report shows 101,513 properties with foreclosure filings during the quarter--up less than 1% from the prior quarter and 17% higher than a year earlier.
In September alone, 35,602 properties had foreclosure filings, down 0.3% from August but 20% above September 2024 levels.
"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."
Foreclosure Starts Rise in Key States and Metros
A total of 72,317 properties began the foreclosure process in the third quarter, up 2% from the previous quarter and 16% higher than the same period last year.
The states recording the most foreclosure starts were Texas (9,736), Florida (8,909), California (7,862), Illinois (3,515), and New York (3,234).
Among major metropolitan areas with populations above 200,000, the highest levels of new foreclosure activity occurred in Houston (3,763), New York City (3,452), Chicago (3,144), Miami (2,502), and Los Angeles (2,321).
Florida, Nevada Lead Nation in Foreclosure Rates
Nationwide, one in every 1,402 housing units had a foreclosure filing in Q3 2025. Florida led the nation with one in every 814 housing units facing foreclosure, followed by Nevada (1 in 831), South Carolina (1 in 867), Illinois (1 in 944), and Delaware (1 in 974).
Among 225 metro areas with populations above 200,000, Lakeland, Fla., posted the highest foreclosure rate--one in every 470 housing units--followed by Columbia, S.C. (1 in 506), Cape Coral, Fla. (1 in 589), Cleveland, Ohio (1 in 593), and Ocala, Fla. (1 in 665).
Other major metros with populations above one million ranking among the 20 worst foreclosure rates included Cleveland (No. 4), Jacksonville, Fla. (No. 6), Las Vegas (No. 9), Houston (No. 14), and Orlando (No. 17).
Bank Repossessions Jump 33% Year Over Year
Lenders repossessed 11,723 properties through foreclosure (REO) in the third quarter, up 4% from Q2 and 33% higher than a year earlier.
States recording the highest REO volumes were Texas (1,288), California (1,132), Florida (762), Pennsylvania (708), and New York (644).
Foreclosure Timelines Shorten Sharply
The average property foreclosed in Q3 2025 had been in the process for 608 days--down 6% from the previous quarter and 25% lower than a year earlier--continuing a steady decline seen since mid-2020.
Louisiana posted the longest average foreclosure timeline at 3,632 days, followed by Nevada (2,667), Rhode Island (1,929), New York (1,867), and Hawaii (1,710).
By contrast, the fastest foreclosure processes occurred in West Virginia (135 days), Texas (154), Virginia (160), Wyoming (165), and Montana (174).
September 2025 Snapshot
- Nationwide, one in every 3,997 properties had a foreclosure filing in September.
- States with the highest monthly foreclosure rates included Florida (1 in 2,182), Delaware (1 in 2,325), Nevada (1 in 2,417), Indiana (1 in 2,697), and South Carolina (1 in 2,883).
- Foreclosure starts totaled 23,761, down 2% from August but up 20% from a year earlier.
- Lenders completed 3,780 foreclosures, down 7% month-over-month yet up 44% year-over-year.
