Foreclosure filings soared in the U.S. last year, the latest bad news for the housing market.
A total of 101,513 properties were filed for foreclosure in the U.S. between July and September, according to the real estate data company's latest report. Statuette.
This is a huge increase of 17 percent compared to the same period in 2024.
In September alone, 35,602 homes were foreclosed on in the United States, up 20 percent from a year ago.
A foreclosure is when the bank or lender takes the home back because the owner missed necessary mortgage payments.
Florida has been hit particularly hard this year, with residents struggling rising insurance costs and homeowners association fees.
“In 2025, we are seeing a strong upward trend in foreclosure activity, with both originations and completions posting year-over-year increases for consecutive quarters,” said Rob Barber, CEO of ATTOM.
“While these numbers remain within historically reasonable ranges, the continuation of this trend may be an early indicator of emerging tensions among borrowers in some regions.”
According to ATTOM CEO Rob Barber, buyout activity will increase in 2025.
Nationwide, one in every 1,402 housing units filed for foreclosure in the third quarter of 2025.
Florida had the highest foreclosure rate, with one for every 814 housing units.
Homeowners in the Sunshine State are facing an onslaught of higher costs and growing apartment crisiswhich worsened after the condition destroyed by Hurricane Milton in October 2024.. Rising costs are especially hard on seniors in the state.
“A huge percentage of Floridians are retired on a fixed income, and so [HOA] growth is completely impossible,” said Jameson real estate investor Tyler Drew. Realtor.com.
“This has led to apartment sales as older residents look for housing while losing their equity.”
Hannah Jones, senior economic research analyst for Realtor.com, added:Foreclosure rates in Florida may be relatively high due to some combination of rising insurance premiums, rising HOA fees, and falling buyer demand.
“Additionally, many homeowners who were protected by pandemic-era forbearance or assistance programs are now faced with renewed payments that they cannot afford in light of rising HOA and insurance costs.”
Among the hardest-hit cities with populations over 200,000, three in five were in Florida.
Lakeland was hit the hardest, with one in 470 housing units facing foreclosure, followed by Cape Coral and Ocala. Columbia, South Carolina, and Cleveland, Ohio also made the top five.
Nationwide, one in every 1,402 housing units had a foreclosure filing in the third quarter of 2025. Florida topped the list, with one in every 814 homes facing foreclosure, the highest rate in the country. Naples in the state is pictured.
Lakeland was the hardest-hit city in Florida, with one in 470 housing units facing foreclosure.
In September alone, 35,602 homes were foreclosed on in the United States, up 20 percent from a year ago.
There are many reasons why Florida's foreclosure rate could be higher, says Hannah Jones, senior economic research analyst for Realtor.com.
Between July and September, Nevada had the second-highest number of foreclosure filings, with one for every 831 housing units.
Leading the state's downward spiral is Las Vegas. who saw The number of tourists is falling sharply, and unnecessary housing is piling up on the market.
The city is particularly vulnerable to foreclosure, Jones said.
“The local economy's dependence on tourism and hospitality makes revenues volatile when travel or consumer spending slows. With home prices down a bit, some owners no longer have stock to sell before defaulting,” she said.
Rounding out the top five hardest-hit states were South Carolina (one for every 867 housing units); Illinois (one in every 944 housing units); and Delaware (one in every 974 housing units).
Not only can foreclosure have a devastating impact on individuals if they lose their home, but it can also have negative consequences on entire communities.
Mortgaged houses usually sold below market price — reduction in surrounding property values.
“Widespread foreclosures could also reduce property values in the surrounding area, increase vacancy rates and place additional strain on local services and infrastructure,” ATTOM's Barber previously told the Daily Mail.
The growing number of homeowners in foreclosure is the latest sign of trouble in Las Vegas.
Not only can foreclosure be devastating for individuals if they lose their home, but it can also have negative consequences for entire communities if homes remain vacant (pictured: Abandoned home on Route 66 in Oklahoma).
“Empty or poorly maintained homes also attract crime and reduce the overall attractiveness of an area,” he continued.
“You'll likely see a spike in foreclosures following rising unemployment and a period of high mortgage rates.
“This is because homeowners tend to default on their mortgages after a period of prolonged economic hardship or loss of income.”
Investors, however, can view foreclosure as an opportunity buy cheaper real estate.
