IRVINE, CA — Foreclosure activity in the United States saw a slight uptick in February 2025, with 32,383 properties facing foreclosure filings, according to ATTOM’s latest U.S. Foreclosure Market Report. This marks a 5% increase from January but a modest 1.7% decline compared to the same month last year.
“February’s rise in foreclosure filings suggests evolving market pressures,” said Rob Barber, CEO of ATTOM. “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.”
Decline in REO Activity
Lenders repossessed 3,031 properties through completed foreclosures (REOs) in February, reflecting a slight 2% month-over-month rise but an 11% drop from the previous year. The annual decline continues a trend observed in 12 of the past 13 months.
States experiencing the largest annual decreases in REOs included New York (down 49%), South Carolina (down 44%), and New Jersey (down 43%). Among metropolitan areas, cities such as Chicago, IL (154 REOs) and Houston, TX (101 REOs) reported the greatest volume of repossessed properties.
States and Cities with Highest Foreclosure Rates
Nationally, one in every 4,395 housing units faced a foreclosure filing in February. Delaware, Illinois, and Nevada recorded the highest state foreclosure rates, with Delaware leading at one in every 2,278 housing units.
Among metropolitan areas with populations over 200,000, Modesto, CA (one in every 1,486 housing units) recorded the nation’s highest foreclosure rate, followed by Lakeland, FL (one in every 1,863 housing units) and Columbia, SC (one in every 2,006 housing units).
For metropolitan areas with over 1 million residents, Las Vegas, NV, Riverside, CA, and Philadelphia, PA, were among those with the highest foreclosure rates.
Foreclosure Starts Increase
Lenders initiated the foreclosure process on 22,730 properties in February, an 8% increase from January and a 1% rise compared to the same time last year. States such as New Jersey (up 78%), Colorado (up 58%), and Georgia (up 42%) posted the most significant month-over-month increases in foreclosure starts.
Report Methodology
The ATTOM Foreclosure Market Report compiles data from more than 3,000 counties across the U.S., covering over 99% of the population. By tracking activities across the three stages of foreclosure (default notices, auctions, and REO filings), ATTOM provides a comprehensive view of national foreclosure trends.
Outlook on the Housing Market
The mixed trends in foreclosure activity highlight the delicate balance between market stability and emerging financial challenges. While foreclosures remain below pre-pandemic levels, the rise in foreclosure starts could signal upcoming challenges for homeowners and the housing market at large. Moving forward, economic factors such as interest rates and employment trends will continue to shape foreclosure dynamics nationwide.
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