U.S. Foreclosure Filings Rise 21% in November 2025, Indicating Market Normalization

Foreclosure filings in the U.S. increased by 21% year-over-year in November 2025, with completed foreclosures rising 26%, reflecting a return to normalized market conditions after pandemic-related reductions rather than signaling a crisis. The data from ATTOM indicates that foreclosure activity has been climbing steadily for nine months, primarily due to the ending of foreclosure moratoriums during the COVID-19 pandemic which had kept rates artificially low. Experts emphasize that these rising numbers start from a historically low baseline, meaning the absolute figures remain modest compared to past housing downturns. Delaware, South Carolina, and Nevada report the highest state-level foreclosure rates, while metropolitan areas such as Philadelphia, Las Vegas, Cleveland, and Tampa lead nationally in filings. Foreclosure filings encompass default notices, auctions, and bank repossessions, with one in every 3,992 housing units affected nationwide in November. Although foreclosure remains financially challenging for affected homeowners, it is considered a regular aspect of housing market cycles. A significant factor moderating foreclosure rates is the increased home equity many owners hold following the substantial home price appreciation during the pandemic. This equity buffer allows homeowners to sell properties rather than lose them to foreclosure if financial difficulties arise. However, rising costs from inflation, property taxes, and homeowners insurance are placing growing pressure on many households, particularly as economic strains extend over multiple months. Despite the upward trend, industry analysts do not forecast another housing crisis akin to the 2008 recession, citing stronger consumer protections such as the Dodd-Frank Act, enhanced financial institution lending standards, and greater lender willingness to work with financially distressed homeowners. Proactive measures for at-risk homeowners include early communication with lenders to explore forbearance or state assistance programs, which may help avoid foreclosure proceedings. The current foreclosure dynamics highlight the importance of monitoring economic stressors on households and the continuing evolution of regulatory frameworks designed to mitigate severe housing market disruptions. This nuanced return to more normal foreclosure rates suggests a stabilizing market rather than an emergent risk environment for insurers and housing finance stakeholders.