Foreclosures in the month of May were down slightly, as ATTOM reports in its May 2025 U.S. Foreclosure Market Report, there were a total of 35,498 U.S. properties with foreclosure filings—default notices, scheduled auctions, or bank repossessions—down 1% month-over-month, but up 9% from a year ago.
“Foreclosure activity in May reflected a mixed picture with fewer starts, but a continued rise in completed foreclosures,” said Rob Barber, CEO at ATTOM. “This suggests that while fewer new defaults are being initiated, lenders may still be working through a backlog of existing cases. We’ll be watching closely in the months ahead to see how these trends evolve.”
States Reporting the Highest Rates
Nationwide one in every 4,009 housing units had a foreclosure filing in May 2025. States reporting the worst foreclosure rates were:
- Delaware (one in every 2,313 housing units with a foreclosure filing)
- Florida (one in every 2,536 housing units)
- Illinois (one in every 2,668 housing units)
- Nevada (one in every 2,747 housing units)
- Indiana (one in every 2,983 housing units)
Among the 110 metropolitan statistical areas (MSAs) with a population of at least 500,000, those with the worst foreclosure rates in May 2025 were found in Florida and California, specifically:
- Lakeland, Florida (one in every 1,506 housing units with a foreclosure filing)
- Cape Coral, Florida (one in every 1,674 housing units)
- Jacksonville, Florida (one in every 1,888 housing units)
- Bakersfield, California (one in every 1,990 housing units)
- Riverside, California (one in every 2,031 housing units)
Those metropolitan areas with a population greater than one million with the worst foreclosure rates in May 2025 including Jacksonville, Florida and Riverside, California were found in:
- Cleveland, Ohio (one in every 2,064 housing units)
- San Antonio, Texas (one in every 2,202 housing units)
- Chicago, Illinois (one in every 2,203 housing units)
Foreclosure Starts Up YoY
Lenders began the foreclosure process on 24,165 U.S. properties in May 2025, down 4% month-over-month, but up 8% year-over-year. States that had the greatest number of foreclosure starts in May 2025 included:
- Texas (3,077 foreclosure starts)
- Florida (2,780 foreclosure starts)
- California (2,641 foreclosure starts)
- Illinois (1,242 foreclosure starts)
- New York (1,222 foreclosure starts)
Those major MSAs with a population greater than one million that had the greatest number of foreclosure starts in May 2025 included:
- New York, New York (1,174 foreclosure starts)
- Chicago, Illinois (1,084 foreclosure starts)
- Houston, Texas (1,017 foreclosure starts)
- Los Angeles, California (782 foreclosure starts)
- Miami, Florida (740 foreclosure starts)
Foreclosure Completions on the Rise
Lenders repossessed 3,844 U.S. properties through completed foreclosures (REOs) in May 2025, up 7% from last month and up 34 percent from last year. States that had the greatest number of REOs in May 2025, included:
- Texas (460 REOs)
- California (300 REOs)
- Pennsylvania (257 REOs)
- Michigan (236 REOs)
- Florida (234 REOs)
Those major MSAs with a population greater than one million that saw the greatest number of REOs in May 2025 included:
- Chicago, Illinois (305 REOs)
- New York, New York (119 REOs)
- Houston, Texas (114 REOs)
- Detroit, Michigan (102 REOs)
- Dallas, Texas (97 REOs)
Looking Ahead
An indicator of future foreclosure trends is generally the jobs market and employment numbers. Income dictates mortgage payments and delinquencies, and according to May 2025 results, the jobs market showed continued labor resilience despite a slowing pace and continued concern regarding tariffs and federal employment status. The U.S. economy added 139,000 jobs in May, slightly above expectations of 126,000, while the unemployment rate remained unchanged at 4.2%, with the number of unemployed people holding steady at 7.2 million.
“Earlier this week, the job openings and labor turnover report showed mixed trends,” added Realtor.com Chief Economist Danielle Hale. “In April, we saw the number of job openings and rate tick slightly higher despite a general downward trend. Job openings totaled nearly 7.4 million, up from the prior month (7.2 million), but lower than the prior year (7.6 million). Job quits, which can be a gauge of worker confidence, fell to 3.2 million in April from 3.3 million in March and 3.4 million one year prior. The job quits rate of 2.0% is fairly consistent with where it’s hovered in the last 12 months (2.0% +/- 0.1%).”
