U.S. Foreclosures Rise 9% Annually in May 2025
Slice of Real Estate Team
Jun 12, 2025
Key highlights
- 35,498 U.S. properties with foreclosure filings in May 2025
- 9% increase in foreclosures compared to May 2024
- Texas, Florida, California lead in new foreclosure starts
- 3,844 properties repossessed, a 34% annual increase
- Delaware, Florida, Illinois post highest foreclosure rates
Notable Quote
“ Foreclosure activity in May reflected a mixed picture with fewer starts but a continued rise in completed foreclosures. This suggests that while fewer new defaults are being initiated, lenders may still be working through a backlog of existing cases. We'll be watching closely in the months ahead to see how these trends evolve. ”
Rob Barber, CEO at ATTOM
Why This Matters
The May 2025 U.S. Foreclosure Market Report from ATTOM reveals a nuanced picture of the nation’s housing market. Despite a 1% monthly decline in overall foreclosure activity, the 9% year-over-year increase signals lingering pressures in certain markets. Notably, states like Delaware, Florida, and Illinois exhibit elevated foreclosure rates, while Texas, Florida, and California account for the largest number of foreclosure starts.
Of particular concern is the 34% rise in completed foreclosures (REOs), indicating that lenders are moving forward with repossessions even as fewer new defaults are initiated. This could point to lenders clearing out backlogged cases from earlier economic disruptions.
As foreclosures can be a leading indicator of financial stress and housing market instability, these trends warrant close monitoring. Policymakers, lenders, and housing advocates should prepare for potential ripple effects, especially in vulnerable metro areas such as Jacksonville, FL; Riverside, CA; and Cleveland, OH.
