Bank Repossessions Of U.S. Real Estate Up 33%

A foreclosure sign in front of a building.

Foreclosure activity continued to creep up across the country in the third quarter.

Real estate repossessions increased 33%, and foreclosure starts increased 16% from the same period the previous year, according to real estate data company Attom's Q3 Foreclosure Market Report.

The report showed a total of 101,531 properties had at least one foreclosure filing in the third quarter. This represents a less-than-1% increase from Q2, and a 17% increase from the same period in 2024.

"In 2025, we've seen a consistent pattern of foreclosure activity trending higher, with both starts and completions posting year-over-year increases for consecutive quarters," Attom CEO Rob Barber said in a statement. "While these figures remain within a historically reasonable range, the persistence of this trend could be an early indicator of emerging borrower strain in some areas."

In the third quarter, 72,317 properties started the foreclosure process, up 2% from the previous quarter and 16% from the same period last year.

Lenders also seized 11,723 properties through foreclosure in the third quarter. That represents a 4% increase from Q2 and a 33% increase from the same period last year.

Florida, Nevada and South Carolina were among the states with the most foreclosure filings in Q3. Texas had the highest number of repossessions at 1,288, followed by California with 1,132 and Florida with 762.

The average time to process a foreclosure decreased by 25% when compared to the third quarter of 2024.

Foreclosures were processed, on average, within 608 days, but there is often a wide disparity of processing time among states. In Q3, West Virginia, Texas and Virginia and Wyoming saw the shortest average foreclosure timelines at 135 days, 154 days and 160 days, respectively.

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