Rising Foreclosures in Early 2025: A Closer Look for the Receivables Industry
According to ATTOM’s Mid‑Year 2025 U.S. Foreclosure Market Report, the first half of 2025 saw a notable increase in foreclosure activity: 187,659 properties received foreclosure filings—including default notices, auction schedules, or bank repossessions—marking a 5.8% rise from a year earlier and a 1.1% uptick from two years ago.
Key Market Highlights
- Foreclosure starts surged by 7%, reaching 140,006 properties, reflecting mounting financial strain for many homeowners.
- Bank repossessions (REOs) totaled 21,007, up 12% year-over-year but still 7% below figures from two years ago.
- Geographically, some states experienced dramatic increases:
- Alaska (+55%)
- Rhode Island (+51%)
- Wyoming and Utah (both +46%)
- Colorado (+41%)
- The highest foreclosure rates were observed in: Illinois (0.23%), Delaware (0.23%), Nevada (0.21%), Florida (0.21%), and South Carolina (0.20%).
- Metro areas with the worst rates included Lakeland, FL (0.29%), Columbia, SC (0.28%), Chicago, IL (0.26%), among others.
What This Means for Receivables Professionals
The uptick in foreclosure activity signals that while broader economic indicators may appear stable, numerous homeowners remain under significant financial stress, filtered through varying regional realities.
For the receivables management industry, this environment presents both heightened challenges and opportunities to support consumers ethically and effectively.
By remaining proactive in communication, empathetic in negotiation, and compliant with the highest standards, the industry can help de-escalate tensions and provide value in difficult times.
