U.S. Foreclosure Activity Posts Eighth Straight Month of Year-Over-Year Increases

ATTOM's October 2025 U.S. Foreclosure Market Report reveals a continued upward trend in foreclosure activity, with total filings reaching 36,766 properties, marking an 19% year-over-year increase and the eighth consecutive month of growth. Foreclosure starts rose 20% year-over-year, while completed foreclosures (REOs) surged 32% from the previous year. Despite these increases, activity remains below historic highs, reflecting a gradual normalization in volumes as homeowners navigate elevated housing and borrowing costs, with Florida, South Carolina, and Illinois experiencing the highest foreclosure rates.

Analysis

ATTOM's October 2025 U.S. Foreclosure Market Report reveals a sustained increase in U.S. foreclosure activity, with total filings up 19% year-over-year to 36,766 properties, marking the eighth consecutive monthly year-over-year rise. Foreclosure starts climbed 20% year-over-year to 25,129, and completed foreclosures (REOs) surged 32% year-over-year to 3,872 properties.

This upward trend is characterized by ATTOM as a "gradual normalization" rather than a return to historic highs, driven by market adjustments and homeowners navigating elevated housing and borrowing costs. States like Florida, South Carolina, and Illinois reported the highest foreclosure rates, indicating regional pockets of stress.

Geographically, Florida, Texas, and California recorded the greatest number of foreclosure starts, while Texas, California, and Florida also led in REO completions. This regional concentration, alongside specific metro areas like Tampa and Jacksonville experiencing high rates, suggests localized vulnerabilities within the broader housing market.

Key Decisions for Investors

• Investors should closely monitor regional housing market health, particularly in states like Florida, Texas, and California, which are exhibiting elevated foreclosure starts and REO activity.
• Evaluate potential exposure to mortgage-backed securities or regional banks with significant loan portfolios in these stressed geographies, assessing for asset quality risks.
• Consider the broader implications of sustained higher housing and borrowing costs on consumer financial health and its potential impact on discretionary spending and economic growth.