IRVINE, CA — ATTOM has released its January 2025 U.S. Foreclosure Market Report, highlighting a modest uptick in foreclosure activity after the holiday season. The data shows 30,816 U.S. properties had foreclosure filings in January—a combination of default notices, scheduled auctions, or bank repossessions. This figure reflects an 8% increase from December 2024 but a 7% decline compared to January 2024, continuing the long-term trend of reduced foreclosure activity.
“January showed a monthly increase in foreclosure filings that may, in part, be the result of a normal post-holiday catch-up of filings,” explained Rob Barber, CEO of ATTOM. “It’s too early to know if 2025 will shift from the general trends of 2024, which saw a continued decline in foreclosure activity. We’ll be monitoring interest rates, inflation, employment, and other factors to understand how the market shapes this year.”
Foreclosure Completions See Mixed Trends
Lenders repossessed 2,973 U.S. properties through completed foreclosures (REOs) in January, a slight 1% increase from the prior month, but down 25% year-over-year. Monthly gains in REOs were recorded in 30 states, including notable spikes in Arizona (up 73%), Virginia (up 57%), and South Carolina (up 55%).
Among metro areas with populations of at least 200,000, Detroit, MI recorded the highest number of REOs at 164, followed by Chicago, IL (148), and Riverside, CA (141).
States With the Highest Foreclosure Rates
On a national level, one in every 4,618 housing units had a foreclosure filing in January 2025. Delaware led the nation with the highest foreclosure rate, where one in every 1,839 housing units faced a foreclosure filing. Other states with elevated rates included Nevada (one in every 2,430 housing units) and Indiana (one in every 2,459 housing units).
Riverside, CA had the highest foreclosure rate among metro areas with a population over 200,000, with one in every 1,786 housing units receiving a filing. Elkhart, IN, and South Bend, IN, followed closely behind with comparable rates.
For larger metropolitan areas with over one million residents, Las Vegas, NV (one in every 1,987 housing units) and Philadelphia, PA (one in every 2,042 housing units) saw some of the highest foreclosure rates.
Foreclosure Starts Increase Monthly
New foreclosure starts also rose in January, with lenders initiating the foreclosure process on 20,994 properties—an 8% increase from December 2024 but a 4% decrease from the same period last year.
States leading in foreclosure starts included Texas (2,654), California (2,443), and Florida (1,898). Major metropolitan areas with significant foreclosure starts included Chicago, IL (1,168) and New York, NY (977), while Houston, TX (932) and Los Angeles, CA (652) also showed elevated activity.
Outlook for 2025
January’s data offers an early glimpse into market dynamics for 2025, as the industry closely watches how broader economic factors like inflation and interest rates evolve throughout the year. While the uptick in monthly foreclosure filings may signal a normalization of activity post-holidays, the overall decline from 2024 reflects resilience in the housing market.
Barber commented, “We’ll keep a close eye on what unfolds through the coming months, particularly as interest rates and employment dynamics influence property owners’ ability to remain current on their mortgages.”
With the release of its monthly report, ATTOM continues to provide valuable insights into U.S. foreclosure trends, setting the stage for stakeholders to better understand and anticipate shifts in the housing market throughout 2025.
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