Foreclosure Rates 2025

Foreclosure rates will probably stay about the same through 2025. Unless market conditions drastically change, the country probably won’t go through another foreclosure crisis.

By , Attorney University of Denver Sturm College of Law
Updated 6/26/2025

Foreclosure rates in the United States peaked in 2010 during what is commonly referred to as the "foreclosure crisis" or "mortgage crisis." At the height of the housing market collapse, widespread mortgage delinquencies, especially from subprime loans, triggered a surge in foreclosures and a steep devaluation in mortgage-backed securities. After the crisis, foreclosure activity steadily declined across the country.

When the COVID-19 pandemic hit, millions of Americans faced job loss or income disruption, making it difficult to keep up with mortgage payments. To prevent a repeat of the 2010 foreclosure wave, the federal government and most states implemented foreclosure moratoriums, created forbearance programs, and enacted temporary foreclosure protections. As a result, foreclosure filings remained historically low in 2020 and 2021.

However, foreclosure rates began to rise again in 2022 and 2023, reflecting the end of pandemic-era protections and economic challenges. By the end of 2024, foreclosure activity began to decline once more. So, what can homeowners expect from foreclosure trends in 2025? Here's what the latest data suggests.

What Are Current Foreclosure Rates?

According to a report by ATTOM Data Solutions, in the first quarter of 2025, one in every 1,515 homes in the United States had a foreclosure filing. A total of 93,953 homes went into foreclosure, an increase of 11% from the previous quarter but down 2% from a year ago.

Highest Foreclosure Rates By State in 2025

According to ATTOM, the states with the highest foreclosure rates in early 2025 were:

These states often top the list of states with high foreclosure rates. But states that have high foreclosure rates tend to fluctuate. Over the years, states with high foreclosure rates have also included others, such as New York, California, and Florida.

What State Has the Most Foreclosures in Terms of Numbers?

The states with the most foreclosure filings in the first quarter of 2025 include: California (10,701), Florida (9,524), and Texas (9,354). States with the greatest annual increases in foreclosure starts in the first quarter of 2025 included Kansas (up 117%), Delaware (58%), Oklahoma (45%), Utah (42%), and Wyoming (33%).

Will Foreclosure Rates Drop or Go Up in the Remainder of 2025?

Foreclosure rates in the rest of 2025 are expected to remain about the same (that is, relatively low). Still, some kind of economic disruption or changes in interest rates could alter this prediction. Perhaps unaffordable or unavailable homeowners' insurance in areas with a high risk of natural disasters could contribute to a housing crisis.

How High Will Foreclosure Rates Be in 2025?

Foreclosure rates are still expected to remain around pre-pandemic levels for the remainder of 2025. Why are foreclosure rates staying relatively low as of now?

Many current homeowners have low, fixed-rate mortgages (meaning they have affordable monthly payments) and a good amount of home equity. So, they could sell the home and walk away with some money if they get into financial trouble. Also, federal and state laws provide borrowers who are having trouble paying their mortgages with many loss mitigation opportunities.

So, the United States should avoid an influx of foreclosures unless market conditions drastically change.

Highest Foreclosure Rates By State in the Rest of 2025

Some states are usually more affected by foreclosure than others. In the past, states that have experienced many foreclosures include California, Florida, Illinois, Nevada, New Jersey, New York, and Ohio.

Still, predicting which states will have the highest foreclosure rates in 2025 isn't easy. Whether a state will have a high foreclosure rate depends on many factors, like employment, homeowner protection laws, and the housing market.

Foreclosure Predictions 2025

Again, a wave of foreclosures isn't likely in 2025 unless something severely disrupts the housing market. As climate-related disasters grow in frequency and intensity, properties located in high-risk areas are experiencing higher insurance premiums and declining values. These mounting financial challenges raise the risk of mortgage defaults. If insurers significantly raise the cost of homeowners' insurance for many homeowners because of severe losses in the industry (for example, due to wildfires and hurricanes), that could lead to major problems in the mortgage market. If homeowners can't afford added insurance costs, they could go into foreclosure.

And if homeowners can't obtain insurance for their homes—say, because their current insurers cancel the existing policies and new policies aren't available because of risks to the property area due to climate change—their lenders might buy expensive force-placed insurance and add the cost to homeowners' bills, potentially making mortgage payments unaffordable.

Should I Buy a Foreclosure Property in 2025?

The main benefit of buying a home at a foreclosure sale is that the price is usually much lower than if you purchase a property through a regular sale. But bidding and buying a home at a foreclosure auction comes with risks, too. Also, because foreclosure rates are low, there are fewer foreclosed homes available to buy, so competition will likely be steep for those that go to auction.

If you have questions about how to buy a home at a foreclosure auction or need help with the process, consider working with an experienced real estate agent or talking to a qualified real estate lawyer.

Read More About Foreclosure

Learn more about foreclosures in What Is Foreclosure?

For information on how long a foreclosure takes, see States With Long Foreclosure Timelines.

Find out when a foreclosure can start in How Soon Can Foreclosure Begin?

Getting Help From a Foreclosure Attorney

If your home is in foreclosure, you might have more options than you think. Consider talking to a foreclosure attorney to learn more. A lawyer can advise you about foreclosure alternatives, your rights in a foreclosure under the law, and fight a foreclosure in court.

If you need additional information about foreclosure alternatives, a HUD-approved housing counselor can explain different options to you in more detail. A counselor can also help you deal with your mortgage servicer. Go to hud.gov to find a housing counseling agency near you, or call toll-free 800-569-4287.

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