Foreclosure activity in the United States continued to rise in October 2025, according to ATTOM’s latest Foreclosure Market Report. A total of 36,766 homes received foreclosure filings such as default notices, scheduled auctions, or bank repossessions. That number is up 19% from a year ago and 3% from the previous month, showing that pressure on homeowners has not eased.
Rob Barber, CEO of ATTOM, noted that this is the eighth month in a row with year-over-year increases. “Foreclosure activity continued its steady upward trend in October. Starts were up nearly 20%, and completed foreclosures rose 32% from a year ago. Even with these increases, activity is still far below past peaks. The trend seems to reflect a slow return to normal levels as some homeowners face higher borrowing costs and tight budgets,” he said.
Nationwide, one in every 3,871 homes had a foreclosure filing in October.
States With the Highest Foreclosure Rates
Some states are feeling the impact more strongly than others. These had the worst foreclosure rates in October:
- Florida: 1 in every 1,829 housing units
- South Carolina: 1 in every 1,982 units
- Illinois: 1 in every 2,570 units
- Delaware: 1 in every 2,710 units
- Nevada: 1 in every 2,747 units
Florida continued to stand out, driven by higher insurance costs, slowing sales, and rising household expenses.
Florida, Texas & California Lead Foreclosure Starts
Lenders started the foreclosure process on 25,129 properties in October 2025, up 20% from last year and 6% from September.
States with the most foreclosure starts:
- Florida: 4,136
- Texas: 3,080
- California: 2,685
- Illinois: 1,252
- New York: 1,165
These states also have large populations, meaning even small increases show up in big numbers.
Markets Seeing the Biggest Improvement
While national numbers climbed, several major metros actually saw big declines in foreclosure starts:
- Milwaukee: 33 → 15
- Indianapolis: 252 → 142
- Louisville: 59 → 45
- Washington, D.C.: 308 → 239
- Detroit: 541 → 428
These areas likely benefited from stronger job markets or more successful loan workout programs.
Completed Foreclosures Also Rising
In October, 3,872 homes were repossessed by lenders, known as REOs. That’s up 2% from the previous month and 32% higher than a year earlier.
States with the most completed foreclosures:
- Texas: 358
- California: 336
- Florida: 243
- Pennsylvania: 205
- Illinois: 187
Higher interest rates, insurance costs, and stretched household budgets continue to push some owners past their limits, leading to more completed foreclosures.
A Slow but Steady Rise in Foreclosures
October marked another month of gradual increases in foreclosure activity, reflecting ongoing financial strain for many homeowners. While numbers remain far below the levels seen during the housing crisis, the combination of high home prices, rising living costs, and elevated mortgage rates continues to create challenges.
Unless borrowing costs ease or incomes rise, analysts expect foreclosure volumes to keep moving slowly upward in the months ahead. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.
