Foreclosure Starts Jump 17% Year-Over-Year, ATTOM Finds

(Illustration courtesy of Johnson via Unsplash)

Just over 101,000 U.S. properties had a foreclosure filing during third-quarter 2025, up less than 1% from the previous quarter but up 17% from a year ago, according to ATTOM, Irvine, Calif.

ATTOM’s Q3 2025 U.S. Foreclosure Market Report also shows a total of 35,602 U.S. properties with foreclosure filings in September, down 0.3% from the previous month and up 20% 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,” ATTOM CEO Rob Barber said. “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 Increase Nationwide

States that had the greatest number of foreclosure starts in the third quarter included: Texas (9,736 foreclosure starts); Florida (8,909 foreclosure starts); California (7,862 foreclosure starts); Illinois (3,515 foreclosure starts); and New York (3,234 foreclosure starts), the report said. 

U.S. Foreclosure Starts

Those major metros with a population of 200,000 or more that had the greatest number of foreclosures starts in Q3 2025 included Houston (3,763 foreclosure starts); New York (3,452 foreclosure starts); Chicago (3,144 foreclosure starts); Miami (2,502 foreclosure starts); and Los Angeles (2,321 foreclosure starts).

Worst Foreclosure Rates: Florida, Nevada and South Carolina

Nationwide, one in every 1,402 housing units had a foreclosure filing in Q3 2025. States with the worst foreclosure rates were Florida (one in every 814 housing units with a foreclosure filing); Nevada (one in every 831 housing units); South Carolina (one in every 867 housing units); Illinois (one in every 944 housing units); and Delaware (one in every 974 housing units).

Bank Repossessions Increase 33% From a Year Ago

Lenders repossessed 11,723 U.S. properties through foreclosure (REO) in Q3 2025, up 4% from the previous quarter and up 33% from a year ago.

“Foreclosure activity continued its gradual upward trend in Q3 2025, with both starts and completions posting annual increases,” the report said. “While overall levels remain relatively low by historical standards, the consistency of these gains over consecutive quarters highlights a market that may be slowly shifting amid broader economic pressures.”