Foreclosures continued to rise last year, with Florida leading the nation, although mortgage defaults remain fairly low relative to historic levels.
In 2025, foreclosure filings were reported on 367,460 U.S. properties, up 14% from 2024 but still 25% below 2019, before pandemic disruptions altered the dynamics of the housing market, according to year-end data from real estate analytics firm ATTOM.
Florida had the highest foreclosure rate of any state last year, with foreclosure filings on 0.44% of residential properties in the Sunshine State. Following were Delaware (0.42%), South Carolina (0.41%), and Illinois (0.40%).
“Florida leads the nation in filings, as homeowners there face heightened affordability pressures from rising insurance premiums, property taxes, and overall ownership costs,” says Realtor.com® senior economic research analyst Hannah Jones.
“Growing home supply has softened demand in parts of the state, contributing to slower price growth and longer time on market. Together, these dynamics increase the risk of foreclosure for some homeowners, particularly those who bought near the peak of the market or are carrying higher monthly costs,” Jones adds.
Meanwhile, the states with the lowest foreclosure rates in 2025 were South Dakota (0.03%), Vermont (0.05%), and Montana (0.07%).
Nationwide, 0.26% of residential properties had a foreclosure filing last year, less than the 0.36% seen in 2019 and far below the crisis-level peak of 2.23% recorded in 2010.
“Foreclosure activity increased in 2025, reflecting a continued normalization of the housing market following several years of historically low levels,” said Rob Barber, CEO of ATTOM. “While filings, starts, and repossessions all rose compared to 2024, foreclosure activity remains well below pre-pandemic norms and a fraction of what we saw during the last housing crisis.”
Barber says that the current uptick in foreclosures is due more to market recalibration than widespread homeowner distress, with strong equity positions and more disciplined lending continuing to limit risk.
Aggregate homeowner equity as a share of real estate value was at 71.6% in the third quarter, down from a record high but still remarkably healthy, according to recent Federal Reserve data.
It means that even if homes were to lose 10% of their value overnight, homeowner equity would still be at 68.4%, a still-strong level, limiting the foreclosure risk from mortgages going underwater.
Foreclosure filings jump 57% in December
The ATTOM report also includes new data for December 2025, showing there were 44,990 U.S. properties with foreclosure filings last month, up 26% from the previous month and 57% higher than a year ago.
States with the worst foreclosure rates in December 2025 were New Jersey (1 in every 1,734 housing units with a foreclosure filing), South Carolina (1 in every 1,917 housing units) and Maryland (1 in every 1,961 housing units).
At the metro level among cities with a population of 1 million or more, Baltimore led the nation in foreclosure rate last month, followed by Cleveland and Philadelphia.
San Jose, CA, had the lowest foreclosure rate of any large metro in December, followed by Milwaukee and Kansas City.
