U.S. foreclosures level in third quarter, but up 17 percent over last year

Although residential foreclosures across the U.S. were pretty level during the third quarter, they are still up 17 percent from a year ago. Those numbers are according to the Q3 2025 Foreclosure Market Report from Attom, a California-based curator of land, property and real estate data. 

The report shows a total of 101,513 U.S. properties with foreclosure filings during the third quarter, up less than 1 percent from the previous quarter, but up 17 percent from last year. The report also shows a total of 35,602 U.S. properties with foreclosure filings in September, down 0.3 percent from the previous month and up 20 percent from a year ago.

“In 2025, we’ve seen a consistent pattern of foreclosure activity trending higher, with both starts and completions posting year-over-year increases for consecutive quarters,” said Rob Barber, CEO at Attom. “While these figures remain within a historically reasonable range, the persistence of this trend could be an early indicator of emerging borrower strain in some areas.”

A total of 72,317 U.S. properties started the foreclosure process in Q3 2025, up 2 percent from the previous quarter and up 16 percent from a year ago.

States that had the greatest number of foreclosure starts in the third quarter included Texas (9,736 foreclosure starts); Florida (8,909); California (7,862); Illinois (3,515); and New York (3,234).

The major metros with a population of 200,000 or more that had the greatest number of foreclosures starts in Q3 2025 included Houston (3,763 foreclosure starts); New York City (3,452); Chicago (3,144); Miami (2,502); and Los Angeles (2,321).

Nationwide, one in every 1,402 housing units had a foreclosure filing in Q3 2025. States with the worst foreclosure rates were Florida (one in every 814 housing units with a foreclosure filing), Nevada (one in every 831), South Carolina (one in every 867), Illinois (one in every 944) and Delaware (one in every 974).

Among 225 metropolitan statistical areas with a population of at least 200,000, those with the worst foreclosure rates in Q3 2025 were Lakeland, Florida (one in every 470 housing units); Columbia, South Carolina (one in 506); Cape Coral, Florida (one in 589); Cleveland (one in 593); and Ocala, Florida (one in 665).

Other major metros with a population of at least 1 million, including Cleveland at No. 4, and foreclosure rates in the top 20 worst nationwide, included Jacksonville, Florida at No. 6; Las Vegas at No. 9; Houston at No. 14; and Orlando, Florida, at No. 17.

Lenders repossessed 11,723 U.S. properties through foreclosure (REO) in Q3 2025, up 4 percent from the previous quarter and up 33 percent from a year ago.

Utah ranked No. 13 in the nation for the percentage of homes in some stage of foreclosure, with 908 properties, down 0.87 percent for the quarter.