11/12/2025

U.S. foreclosure activity has now posted its eighth consecutive month of year-over-year increases, signaling mounting concerns in the housing sector. In October 2025, lenders began foreclosure proceedings on over 25,000 properties, marking a 20% jump compared to the same month last year. Although these levels remain well below the peak distress seen during the housing crisis, the upward trend is both steady and widespread, affecting states across the country.

The most heavily impacted states include Florida, Delaware, Nevada, Indiana, and South Carolina. In these regions, more than one in every 2,500 homes is currently facing some phase of foreclosure. Notably, the Midwest and Sunbelt states have also seen sharp increases, with places like Illinois and Texas ranking high in both foreclosure starts and completed repossessions.

Several factors contribute to this extended growth in foreclosure activity. Economic pressures such as inflation, rising interest rates, and increasing insurance costs have strained household budgets, especially among lower- and middle-income homeowners. The expiration of pandemic-era relief programs further exposed at-risk borrowers to the realities of overdue payments and mounting debt.

Demographically, the trend disproportionately impacts working-class families in high-cost and traditionally vulnerable markets. Younger households who purchased homes in recent years with minimal equity are now especially susceptible.

With the average time to complete a foreclosure process decreasing, some areas could face a new wave of distressed sales in the coming months. For industry professionals, homebuyers, and policymakers, these trends are a signal that early intervention and targeted support may be crucial to mitigating broader ripple effects in the housing market.

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4. https://www.cbsnews.com/news/housing-market-foreclosure-increasing-attom-august-2025/
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