U.S. foreclosure activity rose in the first quarter of 2025, ending a nine-month streak of declines according to new data compiled by real estate analytics firm ATTOM.
A total of 93,953 properties had foreclosure filings between January and March 2025 — an 11% increase from the previous quarter.
While that figure marks a 2% drop compared to the same period last year, it signals growing financial strain among some homeowners, ATTOM CEO Rob Barber said.
Foreclosure starts see double-digit growth
“Following three consecutive quarters of decline, foreclosure activity ticked up in the first quarter of 2025, with notable growth in both starts and completions,” Barber said. “While levels remain 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 added.
The number of properties beginning the foreclosure process reached 68,794 in the first quarter, up 14% from the previous quarter and 2% year-over-year.
States showing the largest year-over-year increases in foreclosure starts included Kansas (117%), Delaware (58%), Oklahoma (45%), Utah (42%) and Wyoming (33%).
Among metropolitan areas with populations of 200,000 or more, Chicago led with 3,789 foreclosure starts, followed by New York (3,566), Houston (3,046), Miami (2,028) and Philadelphia (1,985).
Nationally, one in every 1,515 housing units had a foreclosure filing during the first quarter. Delaware had the highest rate at one in every 761 units, followed by Illinois (1 in 857), Nevada (1 in 874), Indiana (1 in 976) and South Carolina (1 in 1,021).
Columbia, S.C., recorded the highest foreclosure rate among metro areas (1 in 683), with Lakeland, Fla. (1 in 694) and Bakersfield, Calif. (1 in 718) not far behind.
Bank repossessions up, shortening foreclosure timelines
Lenders repossessed 9,691 properties via completed foreclosures (REO) during the first quarter — up 8% from the previous quarter but down 4% from one year ago.
California led with 944 REOs, followed by Texas (938), Illinois (712), Pennsylvania (711) and Michigan (665).
The average time to foreclose fell to 671 days in the first quarter, down 12% from the previous quarter and 9% from a year earlier, continuing a trend that began in mid-2020.
Louisiana had the longest average foreclosure timeline at over 3,000 days, followed by Hawaii (2,274), Kentucky (1,993), Wisconsin (1,952) and New York (1,910). On the shorter end, New Hampshire (110 days), Texas (116) and Wyoming (136) recorded the fastest completions.
March 2025 snapshot
March saw 35,890 properties with foreclosure filings, an 11% increase from February and a 9% rise from March 2024. One in every 3,965 housing units received a filing nationally that month.
States with the highest monthly rates included Delaware (1 in 2,256), Nevada (1 in 2,274), Illinois (1 in 2,484), Indiana (1 in 2,505) and Connecticut (1 in 2,616).
Foreclosure starts rose to 25,070 in March, up 10% from February. Completed foreclosures jumped significantly — up 22% month-over-month and 37% from March 2024, with 3,687 homes repossessed by lenders.
Despite the increases, ATTOM emphasized that foreclosure activity remains well below pre-pandemic levels, though continued economic uncertainty could push more borrowers into distress as 2025 unfolds.
