Foreclosures saw another uptick in the third quarter this year, indicating potential growth strain on borrowers.
More than 100,000 properties in the United States had a foreclosure filed from July through September, up less than a percent from the second quarter and up 17% from the third quarter a year ago, according to a new report from
Nearly 36,000 properties saw foreclosure filings in September, a decrease of 0.3% from August and an increase of 20% from a year ago, the report showed.
"In 2025, we've seen a consistent pattern of foreclosure activity trending higher, with both starts and completions posting year-over-year increases for consecutive quarters," said Rob Barber, CEO at ATTOM, in a press release Thursday. "While these figures remain within a historically reasonable range, the persistence of this trend could be an early indicator of emerging borrower strain in some areas."
Properties that
Texas, Florida, California, Illinois and New York alone accounted for nearly half of the foreclosure starts, driven by each state's most populated city. Texas led the country with 9,736, then Florida with 8,909 and California with 7,862.
Population adjusted, Florida had the worst foreclosure rates, as one in every 814 housing units had a foreclosure filing, well outpacing the national average of one in every 1,402 units. Nevada was not far behind at one in every 831, followed by South Carolina (one in every 867), Illinois (one in every 944) and Delaware (one in every 974).
Among 225 metropolitan areas with at least 200,000 people, Lakeland, Florida (one in every 470 housing units), Columbia, South Carolina (one in 506), Cape Coral, Florida (one in 589) and Cleveland (one in 593) had the worst foreclosure rates.
Additionally, bank repossessions increased 33% from a year ago and 4% from last quarter to 11,723 in the third quarter this year. Texas, California and Florida again led all states in repossessions, followed by Pennsylvania.
The average time of the foreclosure process came in at 608 days in the third quarter, down 6% from the second quarter and 25% from the same time last year.
While a rise in foreclosures may indicate worsening economic conditions, KBRA and Fannie Mae each bumped up expected gross domestic product growth for the upcoming quarter in their latest economic forecasts. The KBRA also signaled steady unemployment levels, but said the effects of tariffs will be felt to a greater degree in the fourth quarter.
