ATTOM’s latest foreclosure report shows another jump in activity, marking eight straight months of year-over-year increases. National headlines are already trying to spin this into a warning siren, but that framing misses the bigger picture.
On a recent Hot Sheet, Byron Lazine broke down ATTOM’s October 2025 numbers and explained why the increases look sharp on paper but still sit far below anything resembling distress.
This blog brings together ATTOM’s national data and real-world context, so you can explain what’s happening in a way that clears up the confusion and makes you their #1 market myth-buster.
National Foreclosure Activity Continues to Rise
ATTOM’s October 2025 U.S. Foreclosure Market Report shows a continued upward trend.
There were a total of 36,766 properties with foreclosure filings, including default notices, scheduled auctions, and bank repossessions.
That’s a 3% increase from September and a 19% increase from one year ago.
October also marked the eighth straight month of year-over-year growth. Nationwide, one in every 3,871 housing units had a foreclosure filing.
ATTOM’s chief executive, Rob Barber, put the national numbers into perspective with the following quote:
“Foreclosure activity continued its steady upward trend in October, the eighth straight month of year-over-year increases. Starts rose nearly 20%, while completed foreclosures were up 32% from last year. Even with these increases, activity remains well below historic highs.”
Byron added additional clarity during his Hot Sheet analysis. He reminded viewers that the current increases are being measured against an extremely low baseline, saying, “We’re continuing to bounce off of zero.”
He also emphasized that rising activity is not a sign of a sudden shift in market health.
“These year-over-year, month-over-month increases seem significant. We’re getting back to normal. We’re getting back to healthy.”
Where Foreclosures Are Highest
Foreclosure rates vary widely across the country. Some states sit well above the national average.
Here are the states with the highest foreclosure rates.
- Florida: one in every 1,829 housing units
- South Carolina: one in every 1,982
- Illinois: one in every 2,570
- Delaware: one in every 2,710
- Nevada: one in every 2,747
Many of the biggest metro areas also saw elevated activity in October.
Here are the metro areas with populations of at least one million that posted the highest rates.
- Tampa: one in every 1,373 housing units
- Jacksonville: one in every 1,576
- Orlando: one in every 1,703
- Riverside: one in every 1,983
- Cleveland: one in every 2,114
Byron pointed out that Tampa’s spike should not be misread as a sudden wave of distress. Ahead of the quote, he explained the Hillsborough County data issue and then said this.
“If you’re looking at a metro high foreclosure, which brings in investors and opportunity, that’d be Tampa… this is a temporary spike caused by the resumption of data collection in Hillsboro County, which added backlogged records and is expected to normalize in November.”
Foreclosure Starts: A Future Indicator to Watch
Foreclosure starts rose meaningfully in October. Lenders initiated the foreclosure process on 25,129 U.S. properties. This was a 6% month-over-month increase and a 20% jump from last year.
The states with the highest number of starts were also some of the most populous.
- Florida: 4,136 starts
- Texas: 3,080
- California: 2,685
- Illinois: 1,252
- New York: 1,165
At the same time, several large metros saw double-digit declines in starts, including Milwaukee, Indianapolis, Louisville, Washington DC, and Detroit.
Byron reminded viewers not to confuse absolute numbers with market risk. Before sharing his caution, he outlined the population context and then said this.
“These are also the most populous states… we’ve got to take that into consideration.”
He added that the rise in starts is not only expected but necessary as the market returns to normal levels.
“Here’s what we’re expecting. We’re expecting these numbers to go up until they hit normal. We’re not even at a normal level yet.”
Completed Foreclosures Are Still Historically Low
Completed foreclosures, known as REOs, continue trending well below normal levels.
Lenders repossessed 3,872 properties in October. That’s a 2% increase from September and a 32% increase from last year.
The states with the highest number of REOs reflect both population size and market activity.
- Texas: 358
- California: 336
- Florida: 243
- Pennsylvania: 205
- Illinois: 187
Large metros also varied in how many completed foreclosures they posted.
- Chicago: 122
- Atlanta: 117
- New York: 111
- Houston: 74
- Riverside: 72
While the percentage increases look sharp, Byron underlined how low the actual numbers still are.
“These are not concerning numbers. It’s closer to zero than it is a thousand.”
He then reinforced the role of foreclosures in a normal market cycle.
“The market needs to go through some of this. This is a normal process in the market. And so, these numbers are normalizing.”
The Stress Behind the Numbers
Even with foreclosure activity still far below normal levels, the stress households are feeling right now is real. A recent Benzinga article reprinted on Yahoo News captured that tension.
It highlighted ATTOM’s October numbers and the emotional response many buyers and homeowners are having in online forums, especially as the cost of staying in a home has jumped faster than many budgets can keep up.
The article described how posters in r/HouseBuyers are seeing insurance premiums, HOA fees, and taxes climb at the same time wages have lagged.
Foreclosures surge 20% as Americans struggle to pay mortgages – and fears of 2008-style crash soar
byu/Key_Brief_8138 inHouseBuyers
Some of the most stressed homeowners in these threads bought during the pandemic, took on low-rate mortgages, then layered on cars or renovations when money was cheap. Now, they’re running into a different reality.
Here are the core issues people are naming in those conversations.
- Higher insurance costs in states like Florida are creating genuine affordability strain.
- Property taxes and everyday living expenses have risen faster than many incomes.
- Inflation has eaten away at the cushion that homeowners and new buyers used to rely on.
- Adjustable-rate borrowers who rode out the low-rate era are now facing higher monthly payments.
- Localized pressures, not national instability, are creating pockets of higher foreclosure activity.
This doesn’t mean the market is replaying 2008. Several commenters in the thread pushed back on the comparison, pointing out that today’s loans are far safer, underwriting is tighter, and banks are not sitting on top of volatile subprime debt.
One user summarized it well: the last crisis was fueled by unstable mortgage products. Today’s pressure comes from costs, not structural collapse.
The article also reminded readers how far the current numbers are from what a true foreclosure crisis looks like. The 36,766 filings ATTOM recorded in October pale in comparison to December 2008, when filings hit 303,410 in a single month.
Still, stress is stress. A homeowner can be nowhere near default and still feel squeezed. A buyer can understand that foreclosures are historically low and still feel priced out.
Acknowledging that financial tension makes your market explanations more human and more credible.
Fold this nuance into your conversations. The numbers show the market is stabilizing, but the strain many households are feeling is real. Both things can be true at the same time.
How to Talk About This With Your Clients
The rise in foreclosure activity can sound dramatic if someone only reads a headline. Your job is to listen to what your client is actually telling you and be ready to explain what the data actually means.
Here are the main points to communicate.
- The increases are real, but they are rising from near zero.
- Activity remains far below historic highs.
- A normal market includes some level of foreclosure activity.
- Many homeowners who face financial trouble can sell because they still have equity.
- State or metro spikes can be driven by reporting changes, not sudden distress.
- Higher activity often creates opportunities for buyers and investors who are looking closely at specific markets.
Byron encouraged viewers to normalize the conversation, adding that the current trend should not be misread as danger.
“These numbers are still not normal yet, so the increases are expected.”
If you want the full context behind October’s foreclosure numbers, watch the November 17 Hot Sheet and tune in weekdays at 9:00 am ET (after Thanksgiving week) for Byron’s real-time market breakdowns. BAMx members also have access to the full episode summary and charts you can use in your marketing and conversations.
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