Reversing course from a steady decline in 2024, foreclosure activity saw an increase in Q1 2025, possibly due to broader economic factors, according to the latest data from ATTOM.
ATTOM’s Q1 2025 U.S. Foreclosure Market Report found that 93,953 properties had foreclosure filings (one in every 1,515 housing units), up 11% from the previous quarter, but down 2% from a year ago.
ATTOM CEO Rob Barber noted that while levels are still below historical averages, “the quarterly growth suggests that some homeowners may be starting to feel the pressure of ongoing economic challenges.”
“However, strong home equity positions in many markets continue to help buffer against a more significant spike in distress,” he continued.
Notably, the data was gathered before recent economic turmoil related to tariffs. Economists have predicted both tariffs and the uncertainty around federal trade policy will further weigh on the economy.
Looking at the data just for the month of March, ATTOM reported that 35,890 properties had foreclosure filings (one in every 3,965 properties), up 11% from the previous month, and up 9% from a year ago.
States with the highest foreclosure rates were Delaware (one in every 761 housing units with a foreclosure filing), Illinois (one in every 857 housing units), Nevada (one in every 874 housing units), Indiana (one in every 976 housing units) and South Carolina (one in every 1,021 housing units).
Metro area-wise, the highest foreclosure rates among the 225 with a population of at least 200,000 were in Columbia, South Carolina (one in every 683 housing units); Lakeland, Florida (one in 694); Bakersfield, California (one in 718); Riverside, California (one in 721); and Chico, California (one in 724).
In terms of starts, 68,794 properties started the foreclosure process, up 14% from the previous quarter, and up 2% from a year ago. States that had 100 or more foreclosure starts and saw the greatest annual increase included Kansas (up 117%), Delaware (up 58%), Oklahoma (up 45%), Utah (up 42%) and Wyoming (up 33%). Metros with the greatest number of foreclosure starts included Chicago, Illinois (3,789); New York, New York (3,566); Houston, Texas (3,046); Miami, Florida (2,028); and Philadelphia, Pennsylvania (1,985).
Bank repossessions (REOs) grew 8% from last quarter to 9,691 properties, but were down 4% from a year ago. States with the greatest number of REOs were California (944), Texas (938), Illinois (712), Pennsylvania (711) and Michigan (665).
Foreclosure processes began on 25,070 properties in March, up 10% from the previous month, and up 8% from March 2024. Lenders completed the foreclosure process on 3,687 properties, up 22% from the previous month, and up 37% from March 2024.
States with the highest foreclosure rates in March 2025 were Delaware (one in every 2,256 housing units with a foreclosure filing), Nevada (one in every 2,274 housing units), Illinois (one in every 2,484 housing units), Indiana (one in every 2,505 housing units) and Connecticut (one in every 2,616 housing units).
For the full report, click here.
