New Foreclosures Jump 20% in October, Pointing to More Stress in the Housing Market

Foreclosures rose again in October, signaling that more homeowners are beginning to feel pressure from higher housing costs, rising debt, and an uneven economy. While total numbers remain lower than past historic levels, the steady climb is becoming harder to ignore.

New data from ATTOM shows 36,766 properties had a foreclosure filing during the month including default notices, scheduled auctions, or bank repossessions. That represents a 3% increase from September and a 19% increase from October 2024, marking the eighth straight month of annual growth.

Foreclosure starts the first step in the process rose 6% from last month and 20% from last year, while completed foreclosures were 32% higher than a year earlier.

ATTOM CEO Rob Barber said the trend still points to “normalization” rather than a crisis. Even so, more homeowners appear to be struggling with higher borrowing costs, insurance expenses, and financial pressures in certain regions.

States With the Highest Foreclosure Activity

Foreclosure filings were most concentrated in the following states:

• Florida
• South Carolina
• Illinois

At the metro level, Florida dominated the list as well. Tampa, Jacksonville, and Orlando had the most filings, followed by Riverside, California, and Cleveland, Ohio.

Completed foreclosures were highest in:

• Texas
• California
• Florida

These states may see more distressed inventory hitting the market in the months ahead, though demand for affordable homes remains strong enough that foreclosed properties are likely to sell quickly.

Why Foreclosure Counts Are Still Low Compared With Past Cycles

Foreclosure levels remain far below the fallout from the Great Recession. At that time, more than 4% of mortgages were in foreclosure. Today, fewer than 0.5% are in that category.

Rick Sharga, CEO of CJ Patrick Co., noted that the figure is well below the historic average, which typically ranges between 1% and 1.5%. Delinquencies are also significantly lower than during the financial crisis, but there are several areas that raise concern.

• FHA loans now have the highest delinquency levels, with more than 11% behind on payments.
• FHA loans make up over half of all seriously delinquent mortgages.
• States with both falling home prices and surging insurance premiums including Florida and Texas — are seeing more borrowers fall behind.

Sharga said these signals could translate into more FHA-related foreclosures in 2026.

Why Homeowners Are Beginning to Feel Strain

Even with modest price softening, home prices remain high, and many recent buyers expected mortgage rates to drop faster after the Federal Reserve began lowering rates. Instead, rates remain close to their recent peak, leaving some borrowers unable to refinance into a cheaper payment.

At the same time:

• Consumer debt has reached record highs.
• Delinquencies are rising in credit cards, auto loans, and other debt categories.
• The job market has shown signs of cooling.
• Inflation, while slower, is still squeezing budgets.

These conditions create a tougher environment for families who purchased homes recently or who were already on the edge financially.

Sharga warned that none of these issues have led to widespread mortgage trouble yet, but the combination of slow home sales, weaker price growth, and rising consumer strain could push delinquency numbers higher in the coming months.

A Market to Watch, but Not a Crisis

Economists agree that the U.S. is not facing a foreclosure wave like the one seen in 2008–2010. Most homeowners still have strong equity positions, which gives them options if financial trouble hits. However, the steady rise in new filings is a reminder that some households are under growing pressure.

If job losses increase or borrowing costs stay high, the number of distressed properties could continue to climb even if the broader market stays stable. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.