According to ATTOM’s October 2025 U.S. Foreclosure Market Report, there were 36,766 U.S. homes with foreclosure filings—default letters, scheduled auctions, or bank repossessions—up 19% from a year ago and 3% from a month ago.
“Foreclosure activity continued its steady upward trend in October, the eighth straight month of year-over-year increases,” said Rob Barber, CEO at ATTOM. “Starts rose nearly 20%, while completed foreclosures were up 32% from last year. Even with these increases, activity remains well below historic highs. The current trend appears to reflect a gradual normalization in foreclosure volumes as market conditions adjust and some homeowners continue to navigate higher housing and borrowing costs.”
Nationwide, one in every 3,871 housing units had a foreclosure filing in October 2025.
States with the worst foreclosure rates were:
- Florida (one in every 1,829 housing units with a foreclosure filing)
- South Carolina (one in every 1,982 housing units)
- Illinois (one in every 2,570 housing units)
- Delaware (on in every 2,710 housing units)
- Nevada (one in every 2,747 housing units)
Florida, Texas & California Lead the Way
In October 2025, lenders began the foreclosure process on 25,129 properties in the U.S., a 20% increase from the previous year and a 6% increase from the previous month.
States that had the largest number of foreclosure starts in October 2025 included:
- Florida (4,136 foreclosure starts)
- Texas (3,080 foreclosure starts)
- California (2,685 foreclosure starts)
- Illinois (1,252 foreclosure starts)
- New York (1,165 foreclosure starts)
The major metro statistical regions (MSAs) with a population of more than one million that experienced the biggest year-over-year drops in foreclosure starts in October 2025, in contrast to the national figures, were:
- Milwaukee (decrease from 33 foreclosure starts in October 2024 to 15 in October 2025)
- Indianapolis (decrease from 252 to 142 foreclosure starts)
- Louisville, KY (decrease from 59 to 45 foreclosure starts)
- Washington, D.C. (decrease from 308 to 239 foreclosure starts)
- Detroit (decrease from 541 to 428 foreclosure starts)
In October 2025, 3,872 U.S. houses were repossessed by lenders through completed foreclosures (REOs), up 2% from the previous month and 32% from the previous year.
States that had the greatest number of REOs in October 2025, included:
- Texas (358 REOs)
- California (336 REOs)
- Florida (243 REOs)
- Pennsylvania (205 REOs)
- Illinois (187 REOs)
Overall, foreclosure activity increased for the eighth consecutive month year-over-year, according to ATTOM’s October 2025 U.S. Foreclosure Market Report, with 36,766 properties having foreclosure files. Although activity is still below historic highs, foreclosure starts were up 20% and final foreclosures were up 32% from a year ago.
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The post U.S. Foreclosures Continue Gradual Climb Amid Higher Housing Costs first appeared on The MortgagePoint.
