"Foreclosure activity increased in 2025, reflecting a continued normalization of the housing market following several years of historically low levels, said Rob Barber, CEO at 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. The data suggests that today's uptick is being driven more by market recalibration than widespread homeowner distress, with strong equity positions and more disciplined lending continuing to limit risk."
"Over the past five years, the spread between the delinquency rate on FHA-insured loans and all mortgages has grown significantly. Meanwhile, partial claims have become unsustainable, with the share of borrowers who have had a previous partial claim rising from 5% in 2020 to 50% in 2025. Schmidt added that diminished home equity and reliance on down payment assistance from state housing finance agencies leave many FHA borrowers particularly vulnerable."
367,460 properties had foreclosure-related filings in 2025, representing 0.26% of U.S. housing units, up from 0.23% in 2024 but down from 0.36% in 2019 and a 2010 peak of 2.23%. Foreclosure activity increased in 2025 as the market normalizes after historically low levels; filings, starts, and repossessions all rose versus 2024 yet remain well below pre-pandemic norms and crisis peaks. The uptick appears driven more by market recalibration than widespread homeowner distress due to strong equity positions and more disciplined lending. FHA borrowers face added challenges from a widening delinquency spread, unsustainable partial claims, diminished equity, and new loss-mitigation rules that may increase foreclosure risk.
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