U S Foreclosures Continue Gradual Climb Amid Higher Housing Costs
Foreclosure activity across the United States continued to climb in October 2025, signaling ongoing financial stress for many homeowners. According to ATTOM’s latest report, more than 36,700 properties received foreclosure filings last month — including default notices, scheduled auctions, and bank repossessions. That represents a 19% jump from last year and a 3% increase from September, marking the eighth straight month of year-over-year growth.
ATTOM CEO Rob Barber emphasized that while foreclosures are rising steadily, they remain well below historic peaks. He says the increases reflect a slow “return to normal” as homeowners face higher mortgage payments, rising insurance costs, and tighter household budgets. Nationwide, about 1 in every 3,871 homes had a foreclosure filing in October.
Some states are being hit far harder than others. Florida leads the nation, with one foreclosure for every 1,829 housing units. South Carolina, Illinois, Delaware, and Nevada round out the top five. Florida’s rising insurance premiums, slower home sales, and high cost of living continue to put added pressure on borrowers.
Foreclosure starts—the initial filings that begin the process—also climbed. Lenders started proceedings on more than 25,000 properties, up 20% annually. The highest numbers came from Florida, Texas, California, Illinois, and New York, states with large populations and diverse housing markets.
Despite the national rise, some major metros actually saw big improvements. Cities like Milwaukee, Indianapolis, Louisville, Washington, D.C., and Detroit recorded sharp drops in new foreclosure starts, likely due to stronger job markets or more effective loan workout programs.
Completed foreclosures—homes officially repossessed by banks—also increased. More than 3,800 properties became REOs in October, up 32% compared to last year. Texas, California, Florida, Pennsylvania, and Illinois saw the most bank takeovers.
Overall, the trend shows a slow but steady rise in foreclosure activity. While the numbers remain manageable, the combination of higher mortgage rates, costly insurance, inflation, and stagnant wages continues to create hardship. Unless interest rates ease or incomes rise, analysts expect foreclosures to continue inching upward through early 2026.
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