<- Return To Industry Updates

Monthly U.S. Foreclosure Activity Increases in January 2025

Industry Update
February 11, 2025

Source: ATTOM

ATTOM, a leading curator of land, property data, and real estate analytics, today released its January 2025 U.S. Foreclosure Market Report, which shows there were a total of 30,816 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions – up 8 percent from the prior month but down 7 percent from a year ago.

“January showed a monthly increase in foreclosure filings that may in some part be the result of a normal post-holiday catch up of filings,” said Rob Barber, CEO at ATTOM. “It’s too early to know if 2025 will shift from the general 2024 trends of a continued decline in foreclosure activity.  We will keep a close eye on the market to see how interest rates, inflation, employment shifts, and other market dynamics impact foreclosures in 2025.”

Foreclosure completion numbers increase monthly in 30 states

Lenders repossessed 2,973 U.S. properties through completed foreclosures (REOs) in January 2025, up just under 1 percent from last month but down 25 percent from a year ago – continuing a trend of declining annual REO numbers seen in 11 of the last 12 months.

States that had at least 50 or more REOs and that saw the greatest monthly increase in January 2025 included: Arizona (up 73 percent); Virginia (up 57 percent); South Carolina (up 55 percent); North Carolina (up 52 percent); and Tennessee (up 26 percent).

Among the 225 metropolitan statistical areas with a population of at least 200,000, that saw the greatest number of REOs included: Detroit, MI (164 REOs); Chicago, IL (148 REOs); Riverside, CA (141 REOs); New York, NY (84 REOs); and Philadelphia, PA (69 REOs).

Highest foreclosure rates in Delaware, Nevada, and Indiana

Nationwide one in every 4,618 housing units had a foreclosure filing in January 2025. States with the highest foreclosure rates were Delaware (one in every 1,839 housing units with a foreclosure filing); Nevada (one in every 2,430 housing units); Indiana (one in every 2,459 housing units); Illinois (one in every 2,756 housing units); and Utah (one in every 3,251 housing units).

Those major metropolitan statistical areas (MSAs) with a population greater than 200,000, with the highest foreclosure rates in January 2025 were Riverside, CA (one in every 1,786 housing units with a foreclosure filing); Elkhart, IN (one in every 1,821 housing units); South Bend, IN (one in every 1,821 housing units); Fresno, CA (one in every 1,859 housing units); and Indianapolis, IN (one in every 1,934 housing units).

Other than Riverside, Fresno, and Indianapolis, among the metropolitan areas with a population greater than 1 million, those with the worst foreclosure rates in January 2025 included: Las Vegas, NV (one in every 1,987 housing units); and Philadelphia, PA (one in every 2,042 housing units).

Foreclosure starts increase monthly and decrease annually

Lenders started the foreclosure process on 20,994 U.S. properties in January 2025, up 8 percent from last month but down 4 percent from a year ago.

Those states that saw the greatest number of foreclosures starts in January 2025 included: Texas (2,654 foreclosure starts); California (2,443 foreclosure starts); Florida (1,898 foreclosure starts); Illinois (1,228 foreclosure starts); and New York (949 foreclosure starts).

Among those major metropolitan statistical areas with a population of at least 200,000, those with the greatest number of foreclosure starts in January 2025, included: Chicago, IL (1,168 foreclosure starts); New York, NY (977 foreclosure starts); Houston, TX (932 foreclosure starts); Philadelphia, PA (777 foreclosure starts); and Los Angeles, CA (652 foreclosure starts).