According to the latest report released by the real estate data company ATTOM, during the third quarter of this year (July to September), a total of 101,513 properties in the United States were subjected to foreclosure applications, marking a significant 17% increase compared to the same period in 2024. This translates to one in every 1,402 households in America facing foreclosure.
In September alone, a staggering 35,602 homes across the nation had their mortgage redemption rights canceled, showing a 20% surge from the previous year.
Foreclosure is the process initiated by banks or lending institutions to reclaim properties when homeowners default on their mortgage loans.
CEO of ATTOM, Rob Barber, pointed out that “foreclosure activities in 2025 have shown a continuing upward trend, with the number of cases initiated and completed increasing year-over-year for several quarters… This trend may suggest that borrowers in certain areas are facing escalating pressures.”
Florida has the highest foreclosure rate among all states this year, with three out of the top five hardest-hit cities in America with populations over 200,000 located in the Sunshine State. Lakeland bears the brunt, with one in every 470 households seeing their mortgage redemption rights revoked. Following closely are Cape Coral and Ocala. Columbia in South Carolina and Cleveland in Ohio also made it to the top five.
Homeowners in Florida are grappling with surging insurance costs and an increasingly severe condo crisis. The rising costs have particularly taken a toll on the local elderly population.
Real estate investor Jameson Tyler Drew told Realtor.com, “Florida has a high proportion of residents relying on fixed retirement income, and the sharp increase in HOA fees has become unaffordable for them, leading to a rush to sell condos and continuous loss of property net worth.”
Following Florida is Nevada, ranking second in the U.S. with the highest number of foreclosure applications from July to September, with one in every 831 households facing foreclosure. Leading the economic downturn in the state is Las Vegas, where a sharp decline in tourist numbers has resulted in an influx of vacant properties in the market.
The next three states most severely impacted are South Carolina (one in every 867 households facing foreclosure), Illinois (one in every 944 households facing foreclosure), and Delaware (one in every 974 households facing foreclosure).
The persistently high foreclosure rates not only have devastating effects on families losing their homes but also cast negative implications on the entire community. Homes that have had their mortgage redemption rights revoked are typically sold below market value, dragging down property values in the vicinity and increasing vacancy rates, further burdening local public services and infrastructure. Vacant or poorly maintained homes also tend to attract criminal activities, reducing the overall appeal of the neighborhood.
Barber noted, “With rising unemployment and soaring mortgage rates for a period of time, you may see a surge in foreclosure numbers.” However, for investors, the increase in foreclosure cases may present opportunities to acquire properties at discounted prices.