Report shows increasing distress despite levels remaining below historical norms
Foreclosure filings across the US continued their slow upward trend in April, signaling that persistent economic stress may be catching up with more homeowners.
ATTOM recorded a total of 36,033 properties with foreclosure filings last month, a slight 0.4% increase from March and a 13.9% jump compared to the same period last year.
"April's foreclosure activity continued its gradual climb, with both starts and completions up annually," said Rob Barber, CEO at ATTOM. "While volumes remain below historical norms, the year-over-year increases may suggest that some homeowners are beginning to feel the effects of persistent economic pressures."
In April 2025, lenders initiated the foreclosure process on 25,265 properties, up 0.8% from the prior month and 16.1% higher than a year earlier. States with the highest volume of foreclosure starts included Texas (3,280 foreclosure starts), Florida (2,810), California (2,501), Illinois (1,313), and Ohio (1,135).
Meanwhile, lenders completed foreclosures (REOs) on 3,580 properties, a 2.9% decline from March but a 23.3% increase from April 2024. This marks the second consecutive month of annual growth in completed foreclosures.
Some states, however, bucked the national trend with notable annual declines in REO activity, including: South Carolina (-45.9%), Maryland (-42.5%); Ohio (-22.4%), New York (-17.3%), and New Jersey (-11.5%).
Additional data from the Mortgage Bankers Association (MBA) showed the delinquency rate for mortgage loans on one-to-four-unit residential properties rose to a seasonally adjusted 4.04% in Q1 2025. That’s an increase of six basis points from Q4 2024 and 10 basis points higher than Q1 2024.
The rate of loans entering foreclosure rose by 5 basis points to 0.20%.
“There were mixed results for mortgage performance in the first quarter of 2025 compared to the end of 2024,” said Marina Walsh, vice president of industry analysis at MBA. “Delinquencies on conventional loans increased slightly, while mortgage delinquencies on FHA and VA loans declined. Foreclosure inventories increased across all three loan types, and particularly for VA loans.”
Despite the increase in activity, Walsh noted that “the overall national delinquency and foreclosure rates remain below historical averages for now.”
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