Foreclosure activity edges higher in Q3 2025

Foreclosure activity across the United States continues to climb modestly in the third quarter of 2025, according to new data from ATTOM.

The report shows 101,513 properties with foreclosure filings between July and September, up less than 1% from the previous quarter and 17% higher than a year earlier.

In September alone, 35,602 properties received filings — a 0.3% monthly decline but a 20% increase from September 2024.

“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,” said Rob Barber, CEO at ATTOM. “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 rise nationwide

A total of 72,317 properties began the foreclosure process in the third quarter — up 2% from the prior quarter and 16% higher than last year.

States reporting the most starts included Texas (9,736), Florida (8,909), California (7,862), Illinois (3,515) and New York (3,234).

Among metro areas with populations above 200,000, Houston led with 3,763 starts, followed by New York City (3,452), Chicago (3,144), Miami (2,502) and Los Angeles (2,321).

Nationally, one in every 1,402 housing units had a foreclosure filing in the third quarter.

Florida recorded the highest rate — one in every 814 homes — followed by Nevada (one in 831), South Carolina (one in 867), Illinois (one in 944) and Delaware (one in 974).

Among the 225 largest metro areas, Lakeland, Fla., had the nation’s worst rate at one in every 470 homes.

Other high-rate metros included Columbia, S.C. (one in 506), Cape Coral, Fla. (one in 589), Cleveland (one in 593) and Ocala, Fla. (one in 665).

Cleveland ranked fourth among major metros with populations over 1 million, while Jacksonville, Fla., ranked sixth, Las Vegas ninth, Houston 14th and Orlando 17th.

Bank repossessions jump, foreclosure timelines shorten

Lenders repossessed 11,723 properties through completed foreclosures in the third quarter, a 4% quarterly increase and a 33% rise from a year earlier.

Texas led in bank repossessions with 1,288, followed by California (1,132), Florida (762), Pennsylvania (708) and New York (644).

The average time to complete a foreclosure dropped to 608 days in the third quarter — down 6% from the prior quarter and 25% from the same time in 2024. The downward trend has continued since mid-2020.

Louisiana had the longest average process at 3,632 days, followed by Nevada (2,667), Rhode Island (1,929), New York (1,867) and Hawaii (1,710). Shortest timelines were in West Virginia (135 days), Texas (154), Virginia (160), Wyoming (165) and Montana (174).

September snapshot

In September, one in every 3,997 properties nationwide had a foreclosure filing.

Florida again led states with the highest monthly rate, one in every 2,182 homes. Delaware, Nevada, Indiana and South Carolina followed.

Lenders initiated 23,761 new foreclosures during the month, down 2% from August but up 20% year over year. Completed foreclosures totaled 3,780 — down 7% from the prior month yet 44% above September 2024.