Foreclosure Filings Surge 17% Nationally as Mortgage Distress Mounts
Washington,D.C.- October 10, 2025, 09:58:13 EDT – A new report indicates a significant increase in U.S. foreclosure activity, with filings jumping 17% year-over-year in September 2025. This marks the highest monthly total as June 2023, signaling growing challenges for homeowners grappling with economic pressures and rising mortgage rates.
The surge in foreclosures comes as many americans continue to navigate financial hardship following the expiration of pandemic-era protections and as mortgage borrowing distress intensifies. The increase impacts homeowners across the country,especially those with adjustable-rate mortgages or who purchased homes at the peak of the market. Experts predict this trend could accelerate in the coming months, possibly adding downward pressure to the housing market and impacting communities already facing economic vulnerability.
According to ATTOM Data Solutions, there were 31,082 U.S. properties with foreclosure filings in September 2025. This figure includes default notices, scheduled auctions, and bank repossessions. States experiencing the largest increases in foreclosure starts include California, Texas, and Florida.
“While foreclosure activity remains below pre-pandemic levels, the consistent month-over-month increases are a clear indication that more homeowners are falling behind on their mortgage payments,” said Rob Barber, CEO of ATTOM. “The combination of higher interest rates, persistent inflation, and a slowing economy is creating a perfect storm for mortgage distress.”
The report also reveals that completed foreclosures-properties banks have taken back-increased 8% from the previous year,while scheduled auctions rose 28%. Pre-foreclosure filings, an early indicator of potential distress, were up 13% year-over-year.