US Foreclosure Filings Rise 14% in 2025

In 2025, the number of US properties with foreclosure filings increased by 14% from the previous year. This means that 367,460 properties were in the process of being repossessed by lenders. The number of foreclosure filings also rose by 3% compared to 2023.

The main reason for this increase is that the housing market is returning to normal after several years of low foreclosure activity. This is according to a report by ATTOM, a company that tracks foreclosure data.

What is a Foreclosure Filing?

A foreclosure filing is when a lender starts the process of taking back a property from a homeowner who is not making mortgage payments. This can happen when a homeowner is having financial trouble and cannot afford to pay their mortgage.

In December 2025, there were 44,990 US properties with foreclosure filings, which is up 26% from November and up 57% from the same time the previous year. This shows that foreclosure activity is increasing, especially towards the end of 2025.

Foreclosure Rates by State

Some states had higher foreclosure rates than others in 2025. Florida had the highest foreclosure rate, with one in every 230 housing units receiving a foreclosure filing. Other states with high foreclosure rates included Delaware and South Carolina.

The city of Lakeland, Florida, had the worst metro-level foreclosure rate, with one filing for every 145 housing units. This suggests that some areas are more affected by foreclosure activity than others.

Impact on Homeowners

The increase in foreclosure filings could have a significant impact on homeowners, especially those who are struggling to make mortgage payments. Experts warn that borrowers with Federal Housing Administration (FHA) loans may face additional challenges under new loss-mitigation rules.

These rules could make it harder for borrowers to avoid foreclosure, especially if they have limited home equity. This is because the new rules may not allow for as much flexibility in terms of loan modifications or partial claims.

Lender Repossessions

In 2025, lenders repossessed 46,439 properties through real estate-owned (REO) foreclosures, which is up 27% from the previous year. However, this number is still down 96% from the peak of 1.05 million in 2010.

The top three states with the greatest number of REOs in 2025 were Texas, California, and Pennsylvania. The top three cities for most REOs were Chicago, New York City, and Houston.

Average Time to Complete a Foreclosure

The average time to complete a foreclosure continued to fall in 2025. Properties foreclosed in the fourth quarter of 2025 spent an average of 592 days in the process, down 3% from the prior quarter and 22% from a year earlier.

Louisiana had the longest average foreclosure timeline, with some properties taking over 3,400 days to complete the foreclosure process. This suggests that the length of time it takes to complete a foreclosure can vary significantly depending on the state.

Looking Ahead

As the housing market continues to evolve, it's likely that foreclosure activity will remain a concern for homeowners and lenders alike. With the new FHA loss-mitigation rules in place, it's possible that we may see an increase in foreclosure filings in the coming year, especially among borrowers with limited home equity.

However, it's also possible that lenders and policymakers will take steps to mitigate the impact of these rules and help borrowers avoid foreclosure. As the situation continues to unfold, it will be important to monitor foreclosure trends and adjust strategies accordingly.