Foreclosure Activity Rises Across US Housing Market, New Data Show

Researchers say the latest trend reflects a normalization in foreclosure volumes.

A 'Bank Foreclosure Sale' sign is posted in front of townhomes in Los Angeles in a file photo. Kevork Djansezian/Getty Images

Foreclosure activity picked up pace in October, raising fresh concerns about stress in the U.S. housing market, new data released on Nov. 13 show.

In October, 36,766 U.S. properties were hit with foreclosure filings, a 3 percent jump from September, according to ATTOM, a property data and real estate analytics firm. This was also up 19 percent from the same time a year ago—the eighth consecutive month of year-over-year increases.

The filings included default notices, scheduled auctions, and bank repossessions.

Foreclosures happen in multiple stages. The first step requires homeowners to default on their mortgages. If they cannot make payments within 90 days of receiving the notice of default, the lender can initiate the foreclosure process. The next stage is a notice of sale, where the home is sold at a public auction to the highest bidder.

The October 2025 U.S. Foreclosure Market Report concluded that one in every 3,871 housing units had a foreclosure filing.

Foreclosure starts climbed almost 19 percent from a year ago, while completed foreclosures surged 32 percent.

Florida registered the worst foreclosure rate, with one in every 1,829 housing units. This was followed by South Carolina (one in every 1,982) and Illinois (one in every 2,570).

On a local level, Florida cities—Tampa, Jacksonville, and Orlando—posted the highest foreclosure volumes, with Riverside, California, and Cleveland, Ohio, rounding out the top five.

In addition, foreclosure starts were the highest in Florida (4,136), Texas (3,080), and California (2,685). Illinois and New York also recorded elevated numbers, with 1,252 and 1,165 foreclosure starts, respectively.

Despite the latest upward trend, these figures are below historical highs, says Rob Barber, CEO at ATTOM.

“The current trend appears to reflect a gradual normalization in foreclosure volumes as market conditions adjust, and some homeowners continue to navigate higher housing and borrowing costs,” Barber said in a news release.

Underneath the Real Estate Hood

Today’s numbers, although possibly signaling growing distress, are far lower than those during the housing market collapse almost 20 years ago.

The U.S. foreclosure rate exceeded one million filings annually, affecting as many as 3 percent of all housing units each year.

Despite ballooning debt levels for households nationwide, the delinquency rate for single-family residential mortgages is below 2 percent, as of the second quarter. At the peak of the global financial crisis of 2008–09, comparatively, the rate was nearly 12 percent.

Strong household balance sheets, a low unemployment rate, and enormous equity accumulation have helped provide a cushion for families amid economic uncertainty.

Still, some cracks could be starting to form in the U.S. housing market.

Federal Housing Administration loans reached 11 percent this past spring, driven by high inflation and increased demand among first-time and low-income homebuyers, as well as borrowers with higher debt-to-income ratios.

The cost of homeownership has been steadily increasing in recent years, according to the Census Bureau’s American Community Survey.

“One way we measure housing affordability is based on how much households spend on selected costs such as mortgage payments, insurance, taxes, utilities, and various fees,” said Jacob Fabina, a Census Bureau economist, in a September analysis.

These costs rose almost 4 percent last year, driven by growing mortgage costs and insurance fees.

That said, household debt is continuing to surge, hitting a fresh all-time high of $18.59 trillion in the third quarter, according to the Federal Reserve Bank of New York.

Credit card debt and home equity lines of credit increased $24 billion and $11 billion, respectively, from the previous quarter. Mortgage debt also advanced $137 billion.

Flows into serious delinquency (90 days or more delinquent) also ticked up in various categories, including mortgage debt, home equity lines of credit, auto loan debt, and student loan debt.

At the same time, delinquencies are low, says Donghoon Lee, economic research advisor at the New York Fed.

“Household debt balances are growing at a moderate pace, with delinquency rates stabilizing,” Lee said. “The relatively low mortgage delinquency rates reflect the housing market’s resilience, driven by ample home equity and tight underwriting standards.”