U.S. Foreclosures Rise In Q1 2025

Foreclosure activity across the United States increased in the first quarter of 2025, following three consecutive quarters of decline, according to a report released April 10 by ATTOM, a curator of nationwide property and real estate data.

A total of 93,953 properties had foreclosure filings — including default notices, scheduled auctions and bank repossessions — from January through March, an 11% increase from the previous quarter. That figure, however, marked a 2% decrease compared with the same period last year.

In March alone, 35,890 properties were in foreclosure, up 11% from February and 9% from a year earlier.

“While levels remain below historical averages, the quarterly growth suggests that some homeowners may be starting to feel the pressure of ongoing economic challenges,” said Rob Barber, ATTOM’s chief executive. “However, strong home equity positions in many markets continue to help buffer against a more significant spike in distress.”

Foreclosure Starts Climb

New foreclosure proceedings — known as foreclosure starts — totaled 68,794 in the first quarter, up 14% from the prior quarter and 2% year-over-year.

Among states with at least 100 foreclosure starts during the quarter, the sharpest increases from a year earlier occurred in Kansas (117%), Delaware (58%), Oklahoma (45%), Utah (42%) and Wyoming (33%).

Major metropolitan areas with the highest volume of foreclosure starts included Chicago (3,789), New York City (3,566), Houston (3,046), Miami (2,028) and Philadelphia (1,985).

Foreclosure Rates Remain Highest in Delaware, Illinois and Nevada

Nationwide, one in every 1,515 housing units had a foreclosure filing during the quarter. The states with the highest foreclosure rates were Delaware (one in every 761 units), Illinois (one in every 857), Nevada (one in every 874), Indiana (one in every 976) and South Carolina (one in every 1,021).

Among metro areas with at least 200,000 residents, Columbia, S.C., led the nation, with one in every 683 housing units in foreclosure. It was followed by Lakeland, Fla. (one in 694), Bakersfield, Calif. (one in 718), Riverside, Calif. (one in 721), and Chico, Calif. (one in 724).

Among larger metro areas — with populations above 1 million — Riverside ranked fourth nationally in foreclosure rate. Others in the top 15 included Chicago (No. 6), Las Vegas (No. 7), Philadelphia (No. 13) and Indianapolis (No. 14).

Lender Repossessions Edge Higher

Banks repossessed 9,691 properties during the first quarter, an 8% increase from the previous quarter but down 4% from a year ago.

States with the highest number of repossessions included California (944), Texas (938), Illinois (712), Pennsylvania (711) and Michigan (665).

Foreclosure Timelines Shorten

Homes foreclosed in the first quarter had spent an average of 671 days in the foreclosure process, a 12% decrease from the fourth quarter of 2024 and a 9% drop year-over-year. That continues a trend toward shorter timelines, which began in mid-2020.

Louisiana posted the longest average foreclosure process, at 3,038 days — more than eight years. Other states with extended timelines included Hawaii (2,274 days), Kentucky (1,993), Wisconsin (1,952) and New York (1,910).

Foreclosures moved fastest in New Hampshire, where the average process lasted just 110 days. Texas (116), Wyoming (136), Minnesota (139) and Rhode Island (149) followed.

March Snapshot: Activity Picks Up

In March, one in every 3,965 properties nationwide had a foreclosure filing. The states with the highest monthly foreclosure rates were Delaware (one in 2,256 housing units), Nevada (one in 2,274), Illinois (one in 2,484), Indiana (one in 2,505) and Connecticut (one in 2,616).

A total of 25,070 foreclosure starts were recorded in March, up 10% from February and 8% from the previous March. Meanwhile, lenders completed 3,687 repossessions — a 22% monthly jump and a 37% increase from a year earlier.

Despite the uptick, analysts noted that overall foreclosure volumes remain well below pre-pandemic norms, thanks in part to strong homeowner equity and continued resilience in housing markets.