U.S. Foreclosures Continue Gradual Climb Amid Higher Housing Costs 

According to ATTOM’s October 2025 U.S. Foreclosure Market Report, there were 36,766 U.S. homes with foreclosure filings—default letters, scheduled auctions, or bank repossessions—up 19% from a year ago and 3% from a month ago.

“Foreclosure activity continued its steady upward trend in October, the eighth straight month of year-over-year increases,” said Rob Barber, CEO at ATTOM. “Starts rose nearly 20%, while completed foreclosures were up 32% from last year. Even with these increases, activity remains well below historic highs. The current trend appears to reflect a gradual normalization in foreclosure volumes as market conditions adjust and some homeowners continue to navigate higher housing and borrowing costs.”

Nationwide, one in every 3,871 housing units had a foreclosure filing in October 2025.

States with the worst foreclosure rates were:

1. Florida (one in every 1,829 housing units with a foreclosure filing)
2. South Carolina (one in every 1,982 housing units)
3. Illinois (one in every 2,570 housing units)
4. Delaware (on in every 2,710 housing units)
5. Nevada (one in every 2,747 housing units)

Florida, Texas & California Lead the Way

In October 2025, lenders began the foreclosure process on 25,129 properties in the U.S., a 20% increase from the previous year and a 6% increase from the previous month.

States that had the largest number of foreclosure starts in October 2025 included:

1. Florida (4,136 foreclosure starts)
2. Texas (3,080 foreclosure starts)
3. California (2,685 foreclosure starts)
4. Illinois (1,252 foreclosure starts)
5. New York (1,165 foreclosure starts)
   

The major metro statistical regions (MSAs) with a population of more than one million that experienced the biggest year-over-year drops in foreclosure starts in October 2025, in contrast to the national figures, were:

1. Milwaukee (decrease from 33 foreclosure starts in October 2024 to 15 in October 2025)
2. Indianapolis (decrease from 252 to 142 foreclosure starts)
3. Louisville, KY (decrease from 59 to 45 foreclosure starts)
4. Washington, D.C. (decrease from 308 to 239 foreclosure starts)
5. Detroit (decrease from 541 to 428 foreclosure starts)
   

In October 2025, 3,872 U.S. houses were repossessed by lenders through completed foreclosures (REOs), up 2% from the previous month and 32% from the previous year.

States that had the greatest number of REOs in October 2025, included:

1. Texas (358 REOs)
2. California (336 REOs)
3. Florida (243 REOs)
4. Pennsylvania (205 REOs)
5. Illinois (187 REOs)
   

Overall, foreclosure activity increased for the eighth consecutive month year-over-year, according to ATTOM’s October 2025 U.S. Foreclosure Market Report, with 36,766 properties having foreclosure files. Although activity is still below historic highs, foreclosure starts were up 20% and final foreclosures were up 32% from a year ago.

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