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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 56 December 2025 J O U R N A L Default Servicing U.S. FORECLOSURES CONTINUE GRADUAL CLIMB AMID HIGHER HOUSING COSTS A ccording to ATTOM's October 2025 U.S. Foreclosure Market Report, there were 36,766 U.S. homes with foreclosure filings—default letters, scheduled auctions, or bank repossessions—up 19% from a year ago and 3% from a month ago. "Foreclosure activity continued its steady upward trend in October, the eighth straight month of year over year (YoY) increases," said Rob Barber, CEO at ATTOM. "Starts rose nearly 20%, while completed foreclosures were up 32% from last year. Even with these increases, activity remains well below historic highs. The current trend appears to reflect a gradual normaliza- tion in foreclosure volumes as market conditions adjust and some homeown- ers continue to navigate higher housing and borrowing costs." Nationwide, one in every 3,871 housing units had a foreclosure filing in October 2025. States with the worst foreclosure rates were: 1. Florida (one in every 1,829 housing units with a foreclosure filing) 2. South Carolina (one in every 1,982 housing units) 3. Illinois (one in every 2,570 housing units) 4. Delaware (one in every 2,710 housing units) 5. Nevada (one in every 2,747 housing units) Florida, Texas & California Lead the Way In October 2025, lenders began the foreclosure process on 25,129 properties in the United States, a 20% increase from the previous year and a 6% in- crease from the previous month. States that had the largest number of foreclosure starts in October 2025 included: 1. Florida (4,136 foreclosure starts) 2. Texas (3,080 foreclosure starts) 3. California (2,685 foreclosure starts) 4. Illinois (1,252 foreclosure starts) 5. New York (1,165 foreclosure starts) The major metro statistical regions (MSAs) with a population of more than one million that experienced the biggest year over year drops in foreclosure starts in October 2025, in contrast to the national figures, were: 1. Milwaukee (decrease from 33 fore- closure starts in October 2024 to 15 in October 2025) 2. Indianapolis (decrease from 252 to 142 foreclosure starts) 3. Louisville, KY (decrease from 59 to 45 foreclosure starts) 4. Washington, D.C. (decrease from 308 to 239 foreclosure starts) 5. Detroit (decrease from 541 to 428 foreclosure starts) In October 2025, 3,872 U.S. homes were repossessed by lenders through completed foreclosures (REOs), up 2% from the previous month and 32% from the previous year. States that had the greatest number of REOs in October 2025 included: 1. Texas (358 REOs) 2. California (336 REOs) 3. Florida (243 REOs) 4. Pennsylvania (205 REOs) 5. Illinois (187 REOs) Overall, foreclosure activity increased for the eighth consecutive month YoY, according to ATTOM's October 2025 U.S. Foreclosure Market Report, with 36,766 properties having foreclosure files. Although activity is still below historic highs, foreclosure starts were up 20% and final foreclosures were up 32% from a year ago. ANALYSIS SHOWS CITIES WITH HIGHEST MORTGAGE DELINQUENCY RATES M any homeowners are strug- gling to stay current on their mortgage loan payments, causing the number of mortgage delin- quencies to increase across the nation, according to a new report from personal finance website WalletHub. The increase is driven by high mort- gage rates and housing costs, along with a rising cost of living that has left many homeowners struggling financially. Fall- ing behind on a mortgage is a serious matter, potentially resulting in late fees,