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Foreclosure actions across the United States registered a modest yet consistent increase during the third quarter of 2025. Data reveals that 101,513 properties faced foreclosure filings between July and September, marking a slight uptick from the previous quarter and a notable 17% rise compared to the same period last year. This trend suggests a gradual but persistent increase in foreclosure activity, with implications for the broader housing market and homeowner stability.

ATTOM's recent analysis highlights a continuous upward trajectory in foreclosure-related events throughout 2025, with both initial filings and completed repossessions showing year-over-year growth for several consecutive quarters. While the current figures remain within what is considered a historically manageable range, the sustained nature of this trend could signal mounting financial pressure on some borrowers. This consistency suggests that underlying economic factors might be contributing to a slowly expanding pool of distressed properties.

A total of 72,317 properties initiated the foreclosure process in the third quarter, representing a 2% increase from the prior quarter and a 16% jump from the previous year. States with the highest number of new foreclosure starts included Texas, Florida, California, Illinois, and New York. Metropolitan areas such as Houston, New York City, Chicago, Miami, and Los Angeles also reported significant numbers of new filings. Nationally, approximately one in every 1,402 housing units had a foreclosure filing during this period, with Florida experiencing the highest rate.

The rate of foreclosures varied significantly across different regions. Florida recorded the highest incidence, with one in every 814 homes experiencing a filing, followed by Nevada, South Carolina, Illinois, and Delaware. Among larger metropolitan areas, Lakeland, Florida, had the most pronounced rate, with one in every 470 homes. Other areas with high rates included Columbia, South Carolina; Cape Coral, Florida; Cleveland; and Ocala, Florida. These geographical disparities highlight localized economic conditions and housing market dynamics contributing to the varying levels of distress.

In a related development, lenders repossessed 11,723 properties through completed foreclosures in the third quarter, reflecting a 4% quarterly increase and a substantial 33% rise from a year earlier. Texas led in bank repossessions, followed by California, Florida, Pennsylvania, and New York. Concurrently, the average time required to complete a foreclosure decreased to 608 days, a 6% reduction from the previous quarter and a 25% drop from the same time in 2024, marking the shortest duration since mid-2020. This indicates a more efficient, albeit potentially more rapid, processing of foreclosures.

The acceleration of foreclosure timelines suggests that properties are moving through the legal process more quickly, potentially impacting both homeowners and the housing market inventory. While some states like Louisiana and Nevada still experience lengthy processes, others such as West Virginia, Texas, and Virginia demonstrate significantly shorter completion times. This divergence in timelines can influence the local housing supply and market stability, underscoring the complex and varied nature of the national foreclosure landscape.

The third quarter of 2025 saw a noticeable increase in foreclosure actions nationwide, with both initial filings and completed repossessions on the rise. This upward trend, accompanied by a reduction in the average time to complete foreclosures, points to evolving dynamics within the U.S. housing market. While the overall numbers remain manageable, the consistent growth in activity warrants close observation, as it may signal ongoing shifts in borrower financial health and broader economic conditions.