The third quarter of 2025 brought notable shifts in the U.S. foreclosure market.
The Big Picture
Recent data reveals that 101,513 U.S. properties received foreclosure filings during Q3 2025. While this represents only a modest increase from the previous quarter (less than 1%), the year-over-year comparison shows a more significant 17% rise from Q3 2024. September 2025 alone saw 35,602 properties with foreclosure filings—relatively flat compared to August but marking a 20% increase from September 2024.
Nationally, one in every 1,402 housing units received a foreclosure filing during Q3 2025. However, certain states experienced significantly higher rates.
What’s Driving These Numbers?
According to industry analysts, 2025 has demonstrated a consistent upward trajectory in foreclosure activity. Both foreclosure starts and completions have posted year-over-year increases for consecutive quarters. While current figures remain within historically normal ranges, the persistence of this trend may signal emerging financial pressure on borrowers in certain markets.
Rob Barber, CEO at ATTOM, notes: “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
The third quarter saw 72,317 properties enter the foreclosure process nationwide—a 2% increase from Q2 2025 and 16% higher than the same period last year.
Top States for Foreclosure Starts in Q3 2025 were:
Texas: 9,736 foreclosure starts
Florida: 8,909 foreclosure starts
California: 7,862 foreclosure starts
Illinois: 3,515 foreclosure starts
New York: 3,234 foreclosure starts
Foreclosure in Metropolitan Areas
Among major metropolitan areas with populations exceeding 200,000, these cities led in foreclosure starts:
Houston, Texas: 3,763 starts
New York, New York: 3,452 starts
Chicago, Illinois: 3,144 starts
Miami, Florida: 2,502 starts
Los Angeles, California: 2,321 starts
States with Highest Foreclosure Rates
Florida: 1 in 814 housing units
Nevada: 1 in 831 housing units
South Carolina: 1 in 867 housing units
Illinois: 1 in 944 housing units
Delaware: 1 in 974 housing units
Metro Areas with Most Concerning Rates
Among the 225 metropolitan statistical areas analyzed, these markets showed the highest foreclosure concentrations:
Lakeland, Florida: 1 in 470 housing units
Columbia, South Carolina: 1 in 506 housing units
Cape Coral, Florida: 1 in 589 housing units
Cleveland, Ohio: 1 in 593 housing units
Ocala, Florida: 1 in 665 housing units
For more information about how Counsellors Title Agency can support your real estate transactions, please contact our team of experienced professionals. (This information was curated by AI)