US Foreclosure Statistics

Foreclosures are often seen as indicators of broader economic trends, such as employment rates and the housing market’s health.

Here’s a detailed breakdown of the latest US trends, contributing factors, and implications for 2025.

What is Foreclosure in The USA?

Foreclosure is a legal process through which a lender takes back home ownership when the borrower cannot keep up with mortgage payments. The financial institution can recover the amount owed by selling the property tied to the loan.

Each US state has unique regulations governing foreclosures. Some follow a judicial process, requiring court involvement, while others use a non-judicial approach, which speeds up the timeline due to less legal oversight.

Despite these differences, the goal remains consistent: to resolve unpaid debt while offering protections to homeowners wherever possible.

When foreclosure begins, borrowers receive notices informing them of the situation, with opportunities to address the missed payments or negotiate alternatives. For some, options like loan modifications or repayment plans may help pause the proceedings.

However, if these solutions fail, the property may be repossessed and sold at an auction or through direct sale.

Overview of US Foreclosure Trends

Historical Foreclosure Rates in the US

During the Great Recession, foreclosures reached unprecedented heights, placing millions in financial turmoil. Between 2007 and 2010, foreclosure filings exceeded two million annually as homeowners struggled with adjustable-rate loans, falling home values, and high unemployment.

At their worst in 2010, filings peaked at a staggering 2.9 million properties, affecting roughly one in every 45 households nationwide.

This sharp spike led to significant regulatory changes, including stricter lending criteria to safeguard borrowers and lenders. Federal programs, such as the Home Affordable Modification Program (HAMP), were introduced to assist struggling homeowners in restructuring loans.

By 2015, the foreclosure rate began tapering off as the economy rebounded, employment increased, and property prices recovered.

The COVID-19 pandemic marked another major turning point, but its impact on foreclosures differed from previous financial upheavals. Various governmental measures, including foreclosure moratoriums and stimulus packages, provided crucial relief to millions.

At the height of the pandemic, filings plummeted to record lows. In 2020, fewer than 200,000 properties faced foreclosure, a sharp contrast to previous years.

Once these temporary safeguards expired, the housing market adjusted again.

By 2022, filings rose by approximately 115% compared to their historic lows, although they remained well below pre-pandemic averages.

Increased interest rates, inflation pressures, and lingering job instability have contributed to the ongoing rise, yet the numbers reflect a more stabilized housing environment than during the crisis years of the past decade.

• During the Great Recession (2007-2010), foreclosure filings exceeded 2 million annually.
• In 2010, filings peaked at 2.9 million properties, affecting 1 in every 45 households.
• By 2020, during the pandemic, foreclosure filings dropped to fewer than 200,000 properties, marking record lows.
• In 2022, foreclosure filings increased by approximately 115% compared to 2020 but remained below pre-pandemic averages.

Key Foreclosure Statistics in 2024-2025

Foreclosures reveal much about the health of the housing market. The latest data from 2024 shows how various factors continue to change this situation.

Below are the critical foreclosure statistics from the past year and recent trends:

• Foreclosure filings in 2024 totaled 322,103, marking a 10% drop compared to 2023.
• Foreclosure starts amounted to 253,306 properties, reflecting a 6% decline from the previous year.
• Bank repossessions hit 36,505, a 13% reduction compared to 2023.
• October 2024 registered 30,784 filings, representing a 4% increase from September but an 11% drop from the same month in 2023.

Certain states and regions also showed significant variations in their foreclosure rates and processes:

• Nevada recorded the highest foreclosure rate in October 2024, with one in every 2,741 homes entering the process.
• California led in foreclosure starts during the same period, with 2,915 properties flagged.

Timelines also changed.

• The average time to foreclose in 2024 was 762 days, a 6% increase over the previous year.

These figures indicate that while foreclosures remained a reality for many, the numbers suggest a continued recovery from past years of much higher rates.

Still, differences in state-level activity, timelines, and economic conditions show the importance of localized strategies for buyers, homeowners, and investors.

State-by-State Analysis

States with the Highest Foreclosure Rates

Foreclosure statistics often reflect deeper economic trends. Examining foreclosure rates across states provides valuable insights into the housing market’s condition.

Here’s a breakdown of the states with the highest rates in 2024, followed by additional details for December of that year:

• Florida and New Jersey tied for the highest foreclosure rate in 2024, with one in every 267 housing units impacted.
• Nevada came third, recording one foreclosure in every 273 homes.
• Illinois followed closely with one in every 278 housing units.
• South Carolina reported one in every 304 homes facing foreclosure.
• Connecticut, Maryland, Ohio, Indiana, and Delaware rounded out the top ten, with rates ranging from one in every 306 to one in every 329 homes.

December 2024 data offered a more recent snapshot:

• Nevada led the month with one foreclosure for every 2,707 homes.
• Indiana and Maryland followed, reporting one in every 2,833 and one in every 3,253 homes, respectively.

These figures highlight how regional pressures vary, emphasizing the importance of understanding localized market dynamics.

States with the Lowest Foreclosure Rates

When measuring economic stability and housing health, states with lower foreclosure rates often stand out as resilience benchmarks.

Below are the states that reported the lowest foreclosure rates in March 2024, emphasizing their strong market conditions:

• Vermont recorded the lowest rate, with just one foreclosure for every 30,467 housing units.
• Montana followed closely, reporting one in every 21,560 homes entering foreclosure proceedings.
• South Dakota had one foreclosure for every 17,870 housing units, maintaining its position as a low-risk market.
• West Virginia showed a foreclosure rate of one in every 14,813 housing units, while Oregon reported one in 14,666.
• Kansas and Rhode Island completed the list, with one in every 12,785 and 12,712 housing units, respectively.

These figures highlight a mix of smaller and more stable housing markets across different regions.

Seasonal Trends in Foreclosure Filings

Foreclosure filings across the U.S. took a seasonal dip in November 2024, dropping by 5% compared to October and 9% year-over-year. Seasonal declines are common, as holiday spending and year-end efforts temporarily slow down foreclosure actions.

While foreclosure filings decreased overall, lender repossessions—when banks take back properties—climbed by 21%; the sharp rise indicates that new foreclosure actions are decreasing while previously stalled cases are completed.

Buyers looking to purchase foreclosed homes may find more inventory hitting the market, particularly from ongoing repossessions. However, the national decline in filings reflects temporary relief for many homeowners.

State-Specific Foreclosure Rates

Notable Figures

Nevada led the way with the highest foreclosure rate in November 2024, with 1 in every 2,941 housing units facing action.

Florida followed closely (1 in every 3,047 units), along with Connecticut, Maryland, and Indiana.

Historically, states with elevated foreclosure rates tend to face compounded economic pressures, such as job market instability or lower homeowner protections. For example, Florida’s history of natural disasters often burdens its housing market with additional costs like repairs and insurance premiums, which can drive defaults higher.

Expectation for 2025

Delaware, New Jersey, and South Carolina will continue experiencing high foreclosure rates. Local economic pressures, such as declining industries or stagnant income growth, will likely contribute to this trend.

Delaware stands out, with one in every 894 homes experiencing foreclosure, because its smaller housing inventory magnifies the impact of default rates.

National Foreclosure Starts Decrease

Foreclosure starts, where the legal process begins, fell by 3% in November 2024 and saw an overall 10% year-over-year decrease.

States like Texas, Florida, and California led in foreclosure starts, reflecting high housing demand and large population centers where economic disparities are most evident.

The correlation between foreclosure starts and home price slowdowns is becoming apparent. For instance, many Texas and California homeowners are hit by higher mortgage payments due to variable rates while facing limited economic relief.

However, Florida’s foreclosure rate is also tied to issues like disaster recovery costs.

Regions with higher foreclosure starts often indicate localized vulnerabilities, such as unemployment spikes or cost-of-living pressures.

Causes of Foreclosures

Economic Factors Impacting Foreclosure Rates

Several key factors in 2024 have significantly influenced foreclosure activity across the United States.

Rising interest rates have placed a heavier financial burden on homeowners. Adjustable-rate mortgages, particularly, have grown more expensive as rates increase, leading to higher monthly payments.

For many borrowers, this additional cost has created a tipping point, pushing them toward default.

Inflation has strained household budgets by reducing families’ purchasing power. Day-to-day living costs have climbed, leaving less disposable income for mortgage payments. These financial pressures, compounded by unexpected expenses, have made it difficult for many households to stay current on their loans.

Another crucial factor is fluctuating unemployment.

Job instability has disrupted income for many, forcing households into tough financial situations. Covering significant expenses such as housing becomes a challenge without regular earnings, increasing the risk of falling behind.

Although stricter lending practices introduced after the 2008 financial crisis have improved mortgage performance, challenges remain. Tighter credit standards have undoubtedly helped ensure borrowers can manage their obligations, but external economic conditions still impact their ability to meet those commitments.

Certain demographics are experiencing unique challenges.

Military families, for instance, must often relocate due to service requirements, which can disrupt financial stability and lead to inconsistent mortgage payments. Retirees relying on fixed incomes face significant hurdles as rising expenses, including property taxes and insurance premiums, outpace their financial resources.

These interconnected economic factors illustrate the complexity of foreclosure risks and their varying impacts on different populations.

Individual Triggers for Foreclosure

The reasons behind foreclosure often stem from financial and personal circumstances that leave homeowners struggling to keep up with their mortgage obligations.

One of the most common causes is job loss or reduced income. For many, losing steady earnings makes keeping up with mortgage payments a significant challenge.

Without alternative sources of income, falling behind on payments becomes an unfortunate reality.

Divorce is another key factor. When households separate, financial responsibilities also split. What once was supported by two incomes must now be managed independently.

Health-related expenses, unexpected medical bills, or a prolonged illness can drain savings and reduce earning capacity. Even those with insurance aren’t immune from the financial blow of a health crisis, which can jeopardize their ability to cover housing costs.

For some homeowners, the terms of their mortgages increase the risk. Borrowers with adjustable-rate mortgages (ARMs) may start with manageable payments, only to face rate hikes later. These increases can push monthly costs beyond affordability, leading to missed payments and eventual default.

Negative equity, where the home’s value falls below the remaining mortgage balance, further complicates matters. When financial pressures mount, homeowners in this position often find themselves trapped, unable to refinance or sell, leaving foreclosure as their only option.

Lastly, poor financial management and lack of planning can make households vulnerable.

Overspending, rising debt, and failing to build emergency savings leave borrowers with few resources to rely on during tough times. When unexpected expenses arise, the ability to stay current on mortgage payments can quickly unravel.

Predictions for 2025 Foreclosure Rates

Analysts predict foreclosure rates will remain close to pre-pandemic levels in 2025. Homeowners’ record-high equity—estimated at over $35 trillion—acts as a safety net, allowing many to avoid foreclosure by selling for profit if financial trouble arises.

Pockets of increased foreclosure activity may develop in geographies burdened by economic downturns or natural disasters. For example, rural areas impacted by industry-specific declines (coal in West Virginia or tourism in Florida) may see rising foreclosures.

Steady mortgage rates and high homeowner equity make a repeat of the 2008 housing crisis unlikely.

However, external shocks, such as geopolitical events or a sudden recession, could create ripple effects across the market.

Homeowner Equity

Most U.S. homeowners hold significant equity, which acts as a financial buffer. Unlike during the 2008 housing crisis, even borrowers in high-risk markets are better equipped to avoid losing their homes due to required down payments or steady appreciation in home values.

Higher equity levels mean borrowers at risk of default can often refinance or sell their homes, ensuring fewer forced foreclosures hit the market.

A widespread depreciation in home values could erode this equity safety net, particularly for those who purchased at recent market peaks.

This equity buildup has helped millions avoid financial devastation and kept national foreclosure levels artificially low.

Potential Causes of Increased Foreclosures

Economic threats:

• Rising unemployment or underemployment due to economic instability.
• Inflation drives living costs, making it harder for families to meet financial obligations.
• Natural disasters exacerbate financial burdens in vulnerable states.

Past economic downturns (e.g., the Great Recession) demonstrated how quickly foreclosure numbers can escalate when multiple stressors converge. Government and industry must address these risks to avoid widespread economic fallout.

Federal relief programs, such as mortgage forbearance plans, mitigated crises during COVID-19. If disruption occurs in 2025, a similar rapid-response system could stabilize markets.

Final Thoughts:

The national housing market will remain stable in 2025 with manageable foreclosure activity.

However, state-by-state variations highlight the importance of monitoring economic pressures, regional disasters, and localized employment trends. During the year ahead, homeowners and buyers should focus on leveraging equity, budgeting carefully, and seeking professional financial advice.

The stability observed sharply contrasts with the volatility of the Great Recession, emphasizing the resilience of U.S. homeowners and the effectiveness of recent regulatory safeguards.

Frequently Asked Questions

What is the current foreclosure rate in the US?

The foreclosure rate 2024 was 0.23% of all housing units, representing 322,103 properties with foreclosure filings.

How many foreclosures in the US in 2025?

Although data for 2025 is not yet fully available, trends suggest that foreclosure activity will remain similar to 2024 levels.

What state has the highest rate of foreclosure?

Florida and New Jersey tied for the highest foreclosure rate in 2024, with one in every 267 housing units.

When did foreclosure rates peak in the United States?

Foreclosure rates peaked 2010 during the mortgage crisis, with nearly 2.9 million properties affected.

What city has the highest foreclosure rate?

Lakeland, Florida, had the highest foreclosure rate in 2024, with one in every 172 housing units.