Foreclosure starts increased 7% in June compared with May and were up 5.8% in the first six months of 2025, according to ATTOM’s latest U.S. Foreclosure Market Report.
Despite the increase, the national foreclosure rate remains near historic lows.
A total of 140,006 U.S. properties started the foreclosure process in the first six months of 2025,. That’s up 41% compared with the first half of 2020.
States that saw the greatest number of foreclosure starts in the first half included Texas (17,680), Florida (15,198), California (14,751), Illinois (7,922) and New York (6,585).
The report shows there were a total of 187,659 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — in the first six months of this year.
“Foreclosure activity continued its upward trend in the first half of 2025, with increases in both starts and completed foreclosures compared to last year,” says Rob Barber, CEO at ATTOM, in the report. “While the overall numbers remain below pre-pandemic levels, the persistent rise suggests that some homeowners are still facing financial challenges amid today’s housing and economic landscape.”
States that saw the greatest increases in foreclosure activity compared to a year ago included Alaska (up 55%), Rhode Island (up 51%), Wyoming (up 46%), Utah (up 46%) and Colorado (up 41%).
States with the worst foreclosure rates in the first half included Illinois (0.23% of housing units with a foreclosure filing); Delaware (0.23%); Nevada (0.21%); Florida (0.21%); and South Carolina (0.20%).
Other states with first-half foreclosure rates among the 10 worst nationwide were Indiana (0.18%); New Jersey (0.18%); Connecticut (0.17%); Ohio (0.16%); and Texas (0.15%).
Among the 225 metropolitan statistical areas with a population of at least 200,000, those with the worst foreclosure rates in the first half were Lakeland, Florida (0.29% of housing units with foreclosure filings); Columbia, South Carolina (0.28%); Chicago, Illinois (0.26%); Ocala, Florida (0.26%); and Jacksonville, North Carolina (0.26%).
Other major metro areas with foreclosure rates ranking among the top 10 worst in the first half were Fayetteville, North Carolina (0.26% of housing units with a foreclosure filing); Las Vegas, Nevada (0.25%); Cleveland, OH (0.25%); Atlantic City, New Jersey (0.25%); and Palm Beach, Florida (0.25%).
Lenders foreclosed (REO) on a total of 21,007 properties in the first six months of 2025, up 12% from the first half of 2024 but down 7% from the first half of 2023.
States that posted the greatest number of REOs in the first half included Texas (2,207); California (1,799); Pennsylvania (1,461); Illinois (1,439); and Michigan (1,260).
Photo: Matthew Moloney
