Foreclosures in 2025 are exceeding last year’s pace, but servicers are also managing to turn around the process more rapidly, according to a new report.
Total filings, including default notices, auctions and bank repossessions, surged to 187,659 properties by midyear, up 5.8% compared to the first six months of 2024, according to the latest report from real estate data provider Attom. One out of every 758 homes had a foreclosure filing listing associated with it, accounting for 0.13% of all properties.
Current growth rates were also higher when comparing January-to-June numbers of 2023 but up by only 1.1%.
“Foreclosure activity continued its upward trend in the first half of 2025, with increases in both starts and completed foreclosures compared to last year,” said Attom CEO Rob Barber in a press release.
“While the overall numbers remain below pre-pandemic levels, the persistent rise suggests that some homeowners are still facing financial challenges amid today’s housing and economic landscape,” he added.
The upturn in foreclosure filings over the first half of 2025 corresponds to broader trends surrounding mortgage distress reported elsewhere, with data showing rising delinquency rates and an upswing in homeowner inquiries for assistance. The termination of a foreclosure moratorium benefiting borrowers with Department of Veterans Affairs mortgages also resulted in a significant spike in that segment.
New starts totaled 140,006 units in the first six months of the year, 7.4% higher on an annual basis from 130,369. Texas, Florida and California led all states with 17,680, 15,198 and 14,751 filings, respectively.
Completed foreclosures resulting in bank repossession also grew 12.2% year over year to 21,007 from 18,726 properties, according to Attom, with Texas and California recording the highest numbers.
While mid-2025 numbers were noticeably higher from a year earlier, more recent monthly changes appeared to show activity easing as the spring progressed. In June, starts came in at 21,872 units. While up from a year ago, the number of new filings decreased 9.5% from May’s 24,165.
Foreclosure completion times shrink
Even as foreclosure volume grew, servicers have seemingly become more efficient in the process when measuring time from start to completion. The average number of days servicers needed to foreclose on a home shortened to 645 days from 671 between the first and second quarters this year, a decrease of 3.9%. The current length of time is the smallest since 2016.
Compared to a year ago when the path from default to repossession took 815 days on average to complete, the second-quarter length shortened by 20.9%.
Foreclosures took as fast as 125 days to complete in Wyoming and 135 days in Texas. On the other end of the scale, average processing times took over 10 years in Louisiana, where servicers needed 3,612 days. Hawaii lagged in the second spot at 2,746 days.
