US Foreclosure Filings Jump 5 Percent in February

Delaware had the highest foreclosure rate in the country, followed by Illinois and Nevada.

Nationwide, more than 6,600 family homes are lost to foreclosure every day. Justin Sullivan/Getty Images

The number of foreclosure filings in the United States rose by 5 percent in February over the prior month as mortgage rates remained elevated, according to property data company ATTOM.

Properties that went into foreclosure hit 32,383 units, the company said in a March 11 statement.

The jump continues the monthly increase reported in January and could suggest that 2025 may see a reversal in the decline of foreclosure activity that was the general trend last year.

“February’s rise in foreclosure filings suggests evolving market pressures,” ATTOM CEO Rob Barber said.

“While some increase may reflect seasonal trends, the uptick in foreclosure starts both month-over-month and year-over-year signals potential shifts. We’ll continue monitoring how economic factors influence foreclosure activity moving forward.”

One in every 4,395 housing units nationwide filed for foreclosure in February. The state with the highest rate was Delaware, followed by Illinois, Nevada, New Jersey, and South Carolina.

At the same time, mortgage rates remained high. While the weekly average rate on a fixed-rate 30-year mortgage decreased in February, the decline was minimal, with rates hovering in a range of about 6.7 percent to 6.9 percent.

High mortgage costs can push up monthly mortgage payments for some homeowners, forcing people struggling financially into foreclosure. There is a possibility that this trend will continue for the year given that mortgage rates are unlikely to drop significantly any time soon.

In February, the Fannie Mae Home Purchase Sentiment Index fell year-over-year for the first time in almost two years, largely because fewer consumers were optimistic about mortgage rates.

“This growing pessimism makes sense, as mortgage rates had remained near the 7% threshold for a few months,” Mark Palim, Fannie Mae senior vice president, said in a statement.

“The decline in sentiment was further impacted by consumers’ growing concerns about their own personal financial situations.”

In February, Barber cited interest rates, employment shifts, inflation, and other market dynamics as factors to watch out for to determine the trajectory of foreclosures this year.

Another indicator of a potential increase in foreclosures is the delinquency rate on mortgages. Data from the Federal Reserve Bank of New York show delinquencies among mortgage holders rising. Mortgage delinquencies can potentially lead to property foreclosures.

In the fourth quarter of 2023, 0.82 percent of mortgage debt was identified as flowing into serious delinquency, and that figure rose to 1.09 percent in the fourth quarter of 2024.

On Aug. 9, 2024, Illinois Gov. JB Pritzker signed into law Senate Bill 2919, which was designed to enhance protections for homeowners regarding online foreclosure sales.

“Over the past few years, there has been a rise in online sales and unregulated third-party entities offering this service. The lack of regulation can result in bad actors manipulating the auction process and can endanger user’s data security,” Illinois state Sen. Robert Martwick, who sponsored the bill in the Senate, said in a statement.

“Under the new law, foreclosure sales in Illinois can be conducted online, in-person, or both, but the method must be disclosed in the notice of sale. Further, the law sets requirements for a proper online sale, including allowable fees, registration and identification requirements, and bidding procedures.”