Foreclosure Activity Up During February

A total of 32,383 residential properties carried foreclosure filings in February, up 5% from January but 1.7% lower than the level recorded in February 2024.

According to data from ATTOM, one in every 4,395 housing units had a foreclosure filing in February. States with the highest foreclosure rates were Delaware (one in every 2,278 housing units with a foreclosure filing); Illinois (one in every 2,333 housing units); Nevada (one in every 2,435 housing units); New Jersey (one in every 2,695 housing units); and South Carolina (one in every 2,816 housing units).

Lenders started the foreclosure process on 22,730 residential properties in February, up 8% from January and up 1% from February 2024. Lenders repossessed 3,031 residential properties through completed foreclosures (REOs) in February, up by roughly 2% from the prior month but down 11% from one year earlier. February’s statistics continued the trend of declining annual REO numbers recording during 12 of the last 13 months.

“February’s rise in foreclosure filings suggests evolving market pressures,” said Rob Barber, CEO at ATTOM. “While some increase may reflect seasonal trends, the uptick in foreclosure starts both month-over-month and year-over-year signals potential shifts. We’ll continue monitoring how economic factors influence foreclosure activity moving forward.”