Homeowners in financial trouble face faster foreclosure process
Foreclosure activity in the US continued to rise in the first six months of 2025, with new data pointing to growing financial pressure among homeowners despite relatively low delinquency rates overall.
A total of 187,659 properties received foreclosure filings (including default notices, scheduled auctions, or bank repossessions) between January and June, according to ATTOM’s mid-year report. That figure represents a 5.8% increase from the same period in 2024 and a 1.1% rise compared to the first half of 2023.
“Foreclosure activity continued its upward trend in the first half of 2025, with increases in both starts and completed foreclosures compared to last year,” said Rob Barber, CEO at ATTOM. “While the overall numbers remain below pre-pandemic levels, the persistent rise suggests that some amid today's housing and economic landscape.”
The number of homes entering the foreclosure process also grew. ATTOM reported 140,006 foreclosure starts in the first half of the year, up 7% year-over-year and 41% higher than the same period in 2020.
Completed foreclosures, or REO (real estate owned) properties, also rose. 21,007 properties were repossessed by lenders between January and June, a 12% increase from the same time last year. However, REOs remain 7% lower than during the first half of 2023, indicating lenders may still be holding back compared to previous cycles.
The time it takes to complete a foreclosure has shortened. Properties foreclosed in Q2 2025 had been in the process for an average of 645 days, down 4% from the previous quarter and 21% lower than one year earlier. This suggests lenders are moving more quickly to resolve delinquent loans than during previous periods.
Nationwide, 0.13% of all housing units, or one in every 758 homes, had a foreclosure filing in the first half of the year. Several states posted sharp increases in activity compared to a year ago:
- Alaska (up 55%)
- Rhode Island (up 51%)
- Wyoming (up 46%)
- Utah (up 46%)
- Colorado (up 41%)
States with the highest foreclosure rates were:
- Illinois and Delaware (0.23% of housing units)
- Nevada and Florida (0.21%)
- South Carolina (0.20%)
While foreclosure activity is up, mortgage delinquencies remained low overall, according to housing data firm Cotality. Still, localized increases were evident.
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“Roughly 40% of metropolitan areas showed increases in the overall delinquency rate, comparable to the share from the fourth quarter of 2024,” said Molly Boesel, senior principal economist at Cotality. She noted that markets hit by natural disasters in 2024 are still showing elevated delinquencies, a trend that typically lasts between nine and 12 months after such events.
Cotality expects delinquency rates to stay low for most of 2025, barring changes in job market conditions, which continue to play a leading role in mortgage performance trends.
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