Nationwide Foreclosure Starts Jump 20 Percent, Completed Repossessions Soar 32 Percent
U.S. foreclosure activity edged higher in October, extending a months-long climb as rising borrowing costs and cooling home-price growth continue to pressure a small but growing share of homeowners.
According to ATTOM’s October 2025 Foreclosure Market Report, 36,766 properties received a foreclosure notice–whether a default filing, scheduled auction, or bank repossession. That figure is up 3% from September and 19% higher than a year earlier, marking the eighth straight month of annual increases.
“Foreclosure activity continued its steady upward trend in October,” said Rob Barber, ATTOM’s chief executive. “Starts rose nearly 20 percent, while completed foreclosures were up 32 percent 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.”
Florida, South Carolina Lead the Nation in Distress Rates
Nationwide, one in every 3,871 housing units had a foreclosure filing in October. Florida posted the highest distress rate, with one in every 1,829 homes receiving a filing. South Carolina followed at one in 1,982, with Illinois, Delaware and Nevada rounding out the top five states facing the most intense levels of foreclosure activity.
Among large metropolitan areas with at least one million residents, Tampa registered the nation’s highest foreclosure rate — one in every 1,373 housing units. ATTOM noted that Tampa’s sharp rise partly reflects a temporary backlog of cases stemming from the resumption of data reporting in Hillsborough County, a surge expected to normalize in November. Jacksonville, Orlando, Riverside and Cleveland also posted elevated rates.
Foreclosure Starts Climb in Sun Belt and Coastal States
Lenders initiated foreclosure proceedings on 25,129 properties in October, up 6% from the prior month and 20% from a year earlier. Florida again led the country, logging 4,136 starts for the month, followed by Texas, California, Illinois and New York.
But several major metros bucked the national trend. Milwaukee, Indianapolis and Louisville all saw sizable year-over-year declines in foreclosure starts. Washington, D.C., and Detroit also recorded meaningful drops, signaling that distress conditions remain uneven across regions.
Completed Foreclosures Rise as Pipeline Clears
Repossessions also ticked higher. Lenders completed 3,872 foreclosure actions in October, 2% more than in September and up 32% from a year before, signaling that more cases lingering from earlier this year are now working their way through the system.
Texas led the nation with 358 completed foreclosures, followed by California (336), Florida (243), Pennsylvania (205) and Illinois (187). Among major metros, Chicago posted the largest number of repossessions, with 122 properties changing hands through foreclosure. Atlanta, New York, Houston and Riverside also recorded elevated totals.
Even with the recent increases, foreclosure activity remains far below the levels seen during the housing crisis more than a decade ago. Analysts say the current trajectory reflects a market gradually reverting to pre-pandemic norms, with distress rising from unusually low bases but still far from indicating systemic risk.
