U.S. foreclosure activity remained on an upward trajectory in October 2025, marking the eighth consecutive month of growth. Starts rose by almost 20 percent, and completed foreclosures jumped 32 percent compared to last year, reflecting what analysts see as a gradual adjustment of market conditions.
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U.S. FORECLOSURE ACTIVITY POSTS EIGHTH STRAIGHT MONTH OF YEAR-OVER-YEAR INCREASES
Key Takeaways:
- Foreclosure activity has increased for eight consecutive months year over year
- Nearly 37,000 properties received foreclosure filings in October 2025
- Foreclosure starts are up 20 percent, completed foreclosures up 32 percent year over year
- Florida, South Carolina, and Illinois recorded the highest foreclosure rates
- Activity remains below historic highs, suggesting a moderated market shift
Foreclosure Trends Continue Upward
The latest data from ATTOM’s October 2025 U.S. Foreclosure Market Report show that foreclosure activity is on the rise for the eighth straight month. According to the report, “there were a total of 36,766 U.S. properties with foreclosure filings—default notices, scheduled auctions or bank repossessions—up 3 percent from a month ago and up 19 percent from a year ago.”
Inside the Latest Data
ATTOM notes that foreclosure starts increased by nearly 20 percent year over year, while the number of completed foreclosures rose 32 percent over the same period. Rob Barber, CEO at ATTOM, observes that rising borrowing costs and market adjustments are encouraging the gradual return of more typical foreclosure volumes. “Even with these increases, activity remains well below historic highs,” Barber says.
Where Foreclosures Are Highest
Nationwide, the data indicate that one in every 3,871 housing units had a foreclosure filing during October 2025. Florida experienced the worst foreclosure rate, with one in every 1,829 housing units facing a filing; South Carolina followed closely at one in every 1,982. Illinois recorded a rate of one filing per 2,570 housing units, and Delaware’s numbers showed one in every 2,710 units.
Final Thoughts
While the numbers continue to climb, experts emphasize that they remain below the historical peaks seen in past housing downturns. Instead, the current rates of foreclosure growth appear to represent a steady normalization in the real estate market as homeowners navigate ongoing challenges with housing costs and economic conditions.
