According to ATTOM’s U.S. Foreclosure Market Report for the month of April, a total of 36,033 U.S. properties reported foreclosure filings—default notices, scheduled auctions or bank repossessions—up 0.4% from the prior month, and up 13.9% from a year ago.
“April’s foreclosure activity continued its gradual climb, with both starts and completions up annually,” said Rob Barber, CEO at ATTOM. “While volumes remain below historical norms, the year-over-year increases may suggest that some homeowners are beginning to feel the effects of persistent economic pressures.”
For the study, ATTOM counted the total number of properties with at least one foreclosure filing entered into the ATTOM Data Warehouse during the month of April. Data was collected from more than 3,000 counties nationwide, and those counties account for more than 99% of the U.S. population. ATTOM’s report incorporates documents filed in all three phases of foreclosure: Default—Notice of Default (NOD) and Lis Pendens (LIS); Auction—Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate-Owned, or REO properties (that have been foreclosed on and repurchased by a bank).
Foreclosure Completions Rise
ATTOM found that lenders repossessed 3,580 U.S. properties through completed foreclosures (REOs) in April 2025, down 2.9% from last month, but up 23.3% from a year ago, marking the second month of REO numbers increasing annually.
Counter to the national trend states that had at least 50 or more REOs and that saw the greatest annual decline in April 2025 included:
- South Carolina (down 45.9%)
- Maryland (down 42.5%)
- Ohio (down 22.4%)
- New York (down 17.3%)
- New Jersey (down 11.5%)
Among the 225 metropolitan statistical areas with a population of at least 200,000, that saw the greatest number of REOs included:
- Chicago, Illinois (220 REOs)
- Atlanta, Georgia (213 REOs)
- New York, New York (143 REOs)
- Houston, Texas (114 REOs)
- Philadelphia, Pennsylvania (86 REOs)
Where Were Foreclosure Rates the Highest?
Nationwide one in every 3,950 housing units had a foreclosure filing in April 2025. States with the worst foreclosure rates included:
- South Carolina (one in every 2,311 housing units with a foreclosure filing)
- Illinois (one in every 2,405 housing units)
- Florida (one in every 2,526 housing units)
- Delaware (one in every 2,617 housing units)
- Nevada (one in every 2,944 housing units)
Metropolitan statistical areas (MSAs) with a population greater than 200,000 reporting the worst foreclosure rates in April 2025 included:
- Warner Robins, Georgia (one in every 1,512 housing units with a foreclosure filing)
- Killeen-Temple, Texas (one in every 1,590 housing units)
- Chico, California (one in every 1,720 housing units)
- Ocala, Florida (one in every 1,731 housing units)
- Palm Bay-Melbourne-Titusville, Florida (one in every 1,753 housing units)
In MSAs with a population greater than one million, those with the worst foreclosure rates in April 2025 were found in:
- Cleveland, Ohio (one in every 1,964 housing units)
- Chicago, Illinois (one in every 2,076 housing units)
- Riverside, California (one in every 2,106 housing units)
- Houston, Texas (one in every 2,147 housing units)
- San Antonio, Texas (one in every 2,326 housing units)
Foreclosure Starts Increase Both Monthly & Annually
Lenders began the foreclosure process on 25,265 U.S. properties in April 2025, up 0.8% from last month and up 16.1% from a year ago. States that had the greatest number of foreclosures starts in April included:
- Texas (3,280 foreclosure starts)
- Florida (2,810 foreclosure starts)
- California (2,501 foreclosure starts)
- Illinois (1,313 foreclosure starts)
- Ohio (1,135 foreclosure starts)
Tracking MSAs with a population of at least 200,000, those with the greatest number of foreclosure starts in April included:
- Houston, Texas (1,202 foreclosure starts)
- Chicago, Illinois (1,139 foreclosure starts)
- New York, New York (1,099 foreclosure starts)
- Miami, Florida (739 foreclosure starts)
- Atlanta, Georgia (665 foreclosure starts)
Factors Contributing to the Uptick
According to the Bureau of Labor Statistics (BLS), real average hourly earnings for all employees were unchanged from March to April, stemming from an increase of 0.2% in average hourly earnings, combined with an increase of 0.2% in the Consumer Price Index for All Urban Consumers (CPI-U). Real average weekly earnings decreased 0.1% over the month due to no change in real average hourly earnings, combined with no change in the average workweek.
The BLS also reported that total nonfarm payroll employment increased by 177,000 in April, with the nation’s unemployment rate was unchanged at 4.2 percent, as employment continuing to trend upward in healthcare, transportation and warehousing, financial activities, and social assistance, as federal government employment declined.
That unemployment stat may soon shift as the Trump administration’s March 13 deadline to cut federal workforces has passed and job cuts loom in nearly every government department. Government Executive reports that many agencies have already begun sending out reduction-in-force (RIF) notices or have outlined employee exit options. Nearly 25,000 probationary employees have lost their jobs to date.
The Consumer Financial Protection Bureau (CFPB), for example, issued RIF notices for approximately 1,500 personnel, roughly 88% of its workforce on April 17, while announcing 50% cuts to its inspection operations of financial services companies. Employees were told they would be locked out by 6 p.m. on April 18 and would be separated from federal service by June 16, barring qualifications for other available positions. A federal judge on April 18 temporarily paused the RIFs at CFPB.
And while federal layoffs may be a small blip on the overall employment radar, these layoffs could potentially impact the housing market moving forward through 2025 and beyond. As more lose their jobs and are forced to move and vacate their homes, foreclosure expectations could ramp up and gain momentum.
“Quite a few people in D.C. are selling their homes because they’re losing their jobs,” said Redfin Premier Real Estate Agent Mary Bazargan of recent D.C. area governmental layoffs. “Many of those people are planning to leave the area because the cost of living is high, and they want a new job that allows them to work remotely and be closer to family. I recently worked with a buyer who bid on a home, offered more money than any other buyer and waived all contingencies. Still, the seller ended up going with an all-cash offer because all of the layoff news made them nervous about accepting offers from financed buyers.”
Click here for more on ATTOM’s analysis of April 2025 foreclosure data.
