Foreclosure Activity Trending Higher

“Be fearful when others are greedy and greedy when others are fearful.” — Warren Buffett

According to ATTOM Data’s Q3 2025 U.S. Foreclosure Market Report, there were 101,513 residential properties with foreclosure filings (default notices, scheduled auctions, or bank repossessions) in the 3rd quarter, up 17% from one year ago. In addition, the report also shows a total of 35,602 properties with foreclosure filings in September 2025, down 0.3% from August and up 20% from one year ago.

ATTOM says there were 72,317 U.S. properties that started the foreclosure process in Q3 2025, up 2% from Q2 and up 16% from one year ago. States with the greatest number of foreclosure starts in Q3 2025 included Texas (9,736), Florida (8,909), California (7,862), Illinois (3,515), and New York (3,234).

As for REOs, lenders repossessed 11,723 U.S. properties through foreclosure (REO) in Q3 2025, up 4% from the previous quarter and up 33% 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…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.” Said Rob Barber, CEO for ATTOM.