As economic pressures continue to weigh on U.S. households, new data shows that foreclosure rates are on the rise nationwide. According to ATTOM Data Solutions’ latest Foreclosure Market Report for April, foreclosure filings have surged significantly year-over-year—highlighting potential distress in the housing market even though overall levels remain below historical highs.
Foreclosure Filings Up Nearly 14% Year-Over-Year
ATTOM’s April 2025 report revealed 36,033 properties with foreclosure filings, a slight 0.4% increase from the previous month but a significant 13.9% jump compared to April 2024. This translates to one in every 3,950 housing units nationwide facing a foreclosure filing. While these numbers remain below historical highs—such as the 2.9 million filings recorded in 2010—they indicate a troubling upward trend. For perspective, the total foreclosure filings for all of 2024 were approximately 322,000.
ATTOM CEO Rob Barber commented, “The year-over-year increases may suggest that some homeowners are beginning to feel the effects of persistent economic pressures.” Despite foreclosure volumes being lower than historical norms, the steady rise is a red flag for the housing market.
Foreclosure Starts and Completions
- Foreclosure Starts: Lenders initiated foreclosure proceedings on 25,265 properties in April 2025, up 0.8% from March and a substantial 16.1% higher than April 2024. This spike in foreclosure starts highlights growing financial strain among homeowners.
- Completed Foreclosures (REOs): Lenders repossessed 3,580 properties through completed foreclosures in April 2025. While this represents a 2.9% decrease from the previous month, it marks a 23.3% increase year-over-year, the second consecutive month of annual REO growth.
State-Level Foreclosure Hotspots
Certain states are experiencing higher foreclosure rates than others. According to ATTOM, the states with the highest foreclosure rates in April 2025 were:
- South Carolina: One in every 2,311 housing units
- Illinois: One in every 2,405 housing units
- Florida: One in every 2,526 housing units
- Delaware: One in every 2,617 housing units
- Nevada: One in every 2,944 housing units
In terms of foreclosure starts, Texas led with 3,280 properties, followed by Florida (2,810), California (2,501), Illinois (1,313), and Ohio (1,135).
On the other hand, some states saw significant annual declines in completed foreclosures (REOs):
- South Carolina: Down 45.9%
- Maryland: Down 42.5%
- Ohio: Down 22.4%
- New York: Down 17.3%
- New Jersey: Down 11.5%
Metro Areas Facing Foreclosure Challenges
Among metropolitan areas with populations of at least 200,000, foreclosure activity was particularly pronounced in certain regions. The metros with the highest number of foreclosure starts included:
- Houston, TX 1,202 starts
- Chicago, IL: 1,139 starts
- New York, NY: 1,099 starts
- Miami, FL: 739 starts
- Atlanta, GA: 665 starts
For completed foreclosures (REOs), the top metro areas were:
- Chicago, IL: 220 REOs
- Atlanta, GA: 213 REOs
- New York, NY: 143 REOs
- Houston, TX: 114 REOs
- Philadelphia, PA: 86 REOs
What’s Driving the Increase in Foreclosure Rates?
The rise in foreclosure rates can be attributed to persistent economic pressures, including inflation, rising interest rates, and stagnant wage growth in some areas. While foreclosure activity remains below the peaks seen during the 2008-2010 housing crisis, the year-over-year increases suggest that some homeowners are struggling to keep up with mortgage payments. This trend could have broader implications for the housing market, particularly in states and metro areas with already high foreclosure rates.
What To Do If You Are A Homeowner At Risk of Foreclosure
For homeowners facing financial difficulties, early action is critical. Here are a few steps to consider:
- Contact Your Lender: Many lenders offer forbearance or loan modification options to help homeowners avoid foreclosure.
- Explore Assistance Programs: Federal and state programs, such as those offered by the U.S. Department of Housing and Urban Development (HUD), may provide relief.
- Seek Financial Counseling: Nonprofit organizations can offer free or low-cost advice on managing debt and avoiding foreclosure.
Summary
While foreclosure rates are still below historical highs, the year-over-year increases reported by ATTOM Data Solutions are a reminder of the economic challenges facing homeowners. States like South Carolina, Illinois, and Florida, along with metro areas like Houston and Chicago, are seeing the brunt of this uptick. Homeowners in these regions should stay proactive and explore available resources to protect their homes.
As always, all real estate is local. Therefore, it is important to consult a local and knowledgeable real estate to gain an understanding of your housing market. Are you looking to buy or sell real estate in the South Florida area? We can help! Contact Natasha at Live South Florida Realty, Inc. today! Also, be sure to download the free Florida Home Search App for your smartphone or tablet.
