In 2025, the number of foreclosures in the housing market in the United States showed an upward trend, increasing by 14% compared to 2024, with Florida having the highest number of foreclosures in the country. However, analysts believe that the US real estate market is returning to normalcy.
According to a report released by real estate data and analytics firm ATTOM on January 15, last year there were a total of 367,460 properties in the US that were involved in default notices, scheduled auctions, or bank repossessions. These properties accounted for 0.26% of all residential units, slightly up from 0.23% in 2024 but still lower than the 0.36% in 2019.
While the total number of foreclosures for the year was still 25% lower than in 2019, there were 111,692 properties that went into foreclosure in just the fourth quarter, a 10% increase from the previous quarter and a 32% increase from the fourth quarter of 2024. Across the US, in the fourth quarter of 2025, on average, for every 1,274 properties, there was one property with a foreclosure application.
Rob Barber, the CEO of ATTOM, stated in the report, “The increase in foreclosure activity in 2025 reflects the continued normalization of the real estate market after experiencing historic lows for several years.”
He pointed out that, “Although applications, starts, and repossessions have increased compared to 2024, foreclosure activity remains far below pre-pandemic levels and is only a small fraction of what it was during the previous housing market crisis.”
Barber added that data indicates that the recent increase in foreclosures is being driven more by “market readjustment” than by homeowners facing severe financial difficulties.
Florida had the highest foreclosure application rate in the country last year, with 1 foreclosure for every 230 housing units. Following Florida were Delaware with 1 foreclosure for every 240 units, South Carolina with 1 foreclosure for every 242 units, and Illinois and Nevada with 1 foreclosure for every 248 units.
The remaining states in the top 10, in order, were New Jersey with 1 foreclosure for every 273 units, Indiana with 1 foreclosure for every 302 units, Ohio with 1 foreclosure for every 307 units, Texas with 1 foreclosure for every 319 units, and Maryland with 1 foreclosure for every 326 units.
The report revealed that in 2025, foreclosure initiation cases increased in all regions across the US, with a total of 289,441 properties being initiated for foreclosure by lending institutions, a 14% increase from 2024. Texas led with 37,215 cases, followed by Florida with 34,336 cases, California with 29,777 cases, Illinois with 15,010 cases, and New York with 13,664 cases.
Foreclosure is typically seen as the formal start of a legal process where lenders attempt to reclaim unpaid loans and sell the property, usually initiated after the borrower fails to make payments for 120 consecutive days.
Rocket Mortgage mentioned that the foreclosure process varies by state. In metropolitan areas with populations over one million, New York City had the most foreclosure initiation cases in 2025 with 14,189, followed by Chicago with 13,312, Houston with 13,009, Miami with 8,936, and Los Angeles with 8,503.
Regarding bank repossessions, lending institutions took control of 46,439 properties last year, a 27% increase from 2024. Texas, California, Pennsylvania, Florida, and Illinois had the highest number of repossessions in 2025.
The ATTOM report indicated that the average time properties spent in the foreclosure process in the fourth quarter of 2025 was 592 days, a 3% decrease from the previous quarter and a 22% decrease from December 2024.