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TTOM’s latest U.S. Foreclosure Market Report shows a sharp uptick in distressed property activity. Bank repossessions (REOs) rose 33 % from last year, while foreclosure filings climbed 17 %. In Q3 2025, 101,513 homes were under some form of foreclosure, a 17 % jump over the same period in 2024. Nationwide, one in every 1,402 homes had a filing, indicating a broader trend toward increased foreclosures.

    The surge is most pronounced in states that ATTOM had flagged as vulnerable a year ago. Texas led with 9,736 foreclosure starts, followed by Florida (8,909), California (7,862), Illinois (3,515), and New York (3,234). Within these states, the largest metro markets saw the highest numbers: Houston topped the list with 3,763 starts, New York City had 3,452, Chicago 3,144, Miami 2,502, and Los Angeles 2,321. Florida’s cities also reflected high rates—Lakeland had one filing per 470 homes, Cape Coral per 589, and Ocala per 665.

    The acceleration is linked to lingering economic uncertainty, persistent inflation, and higher mortgage rates. Pandemic‑era relief measures—such as forbearance programs and consumer savings—have faded, leaving homeowners more exposed. Rising costs of homeownership, especially in Florida and California, and a crisis‑level strain on home insurance have compounded the problem. ATTOM notes that the foreclosure process has shortened, now taking roughly 608 days compared to over 800 days a year ago, allowing distressed properties to move through the system more quickly and inflating the visible REO inventory.

    These findings suggest that the rebound in repossessions and filings is not a temporary blip but a sustained shift toward greater housing market distress, especially in historically vulnerable regions.