The number of homes entering the foreclosure process also grew. ATTOM reported 140,006 foreclosure starts in the first half of the year, up 7% year-over-year and 41% higher than the same period in 2020.
Completed foreclosures, or REO (real estate owned) properties, also rose. 21,007 properties were repossessed by lenders between January and June, a 12% increase from the same time last year. However, REOs remain 7% lower than during the first half of 2023, indicating lenders may still be holding back compared to previous cycles.
The time it takes to complete a foreclosure has shortened. Properties foreclosed in Q2 2025 had been in the process for an average of 645 days, down 4% from the previous quarter and 21% lower than one year earlier. This suggests lenders are moving more quickly to resolve delinquent loans than during previous periods.
Nationwide, 0.13% of all housing units, or one in every 758 homes, had a foreclosure filing in the first half of the year. Several states posted sharp increases in activity compared to a year ago:
- Alaska (up 55%)
- Rhode Island (up 51%)
- Wyoming (up 46%)
- Utah (up 46%)
- Colorado (up 41%)
States with the highest foreclosure rates were: