Despite the slight decrease in U.S. foreclosure activity for May 2025, the 9% year-over-year increase signals troubling undercurrents in the American housing market under President Trump’s economic policies.
Key Takeaways
- U.S. foreclosure filings dropped 1% in May to 35,498 properties, breaking four consecutive months of increases but still up 9% from May 2024.
- Foreclosure starts decreased 4% monthly while completed foreclosures rose 7%, suggesting lenders are finishing older foreclosure processes.
- Delaware, Florida, and Illinois reported the nation’s highest foreclosure rates, with Lakeland, FL leading metro areas with one foreclosure per 1,506 housing units.
- Texas led the nation with 3,077 foreclosure starts, followed by Florida and California, highlighting regional economic struggles.
- Property repossessions increased 7% monthly and 34% annually, with 3,844 properties seized through completed foreclosures in May 2025.
Minor Relief After Months of Rising Foreclosures
May 2025 brought a slight reprieve to the U.S. housing market as foreclosure activity decreased by 1% from April, breaking a concerning four-month streak of increases,” according to ATTOM, comprehensive data. America’s leading property analytics firm, the total foreclosure filings still reached 35,498 properties nationwide. While this monthly decrease offers a glimmer of hope, the 9% increase compared to May 2024 underscores persistent challenges facing American homeowners despite broad economic initiatives. The month-over-month decline is particularly significant after continuous increases from January through April, suggesting potential stabilization in certain housing market segments.
“The number of properties with foreclosure filings across the United States was 35,498 in May, down 1 percent from a month back, real estate analytics company ATTOM said in a June 10 statement,” according to ATTOM, real estate analytics company.
Conflicting Signals in Foreclosure Data
A deeper analysis of May’s foreclosure data reveals a complex picture of America’s housing market. Foreclosure starts – the initial phase of the foreclosure process – decreased by 4% from April, potentially indicating improved financial stability among some mortgage holders. However, this positive indicator is countered by a concerning 7% increase in completed foreclosures compared to the previous month. The 34% jump in completed foreclosures from May 2024 suggests lenders are aggressively clearing backlogs of distressed properties that accumulated during previous economic cycles, particularly in states hit hardest by economic challenges.
Regional Disparities Highlight Economic Challenges
The foreclosure crisis is not impacting all Americans equally, with significant regional variations painting a stark picture of economic disparity across the nation. Delaware led all states with the highest foreclosure rate – one filing for every 2,313 housing units – followed closely by Florida and Illinois. These statistics reveal the uneven nature of economic recovery in different regions. At the metropolitan level, Lakeland, Florida emerged as the foreclosure hotspot among areas with populations exceeding 500,000, recording one foreclosure filing for every 1,506 housing units. This concentrated distress points to localized economic vulnerabilities that persist despite broader national policies.
Texas Leads Nation in New Foreclosure Actions
Texas continues to face significant housing challenges, leading all states with 3,077 foreclosure starts in May 2025. Florida and California followed with 2,974 and 2,933 starts respectively, highlighting ongoing economic struggles in the nation’s most populous states. Beyond new foreclosures, Texas also topped the list for completed foreclosures (REOs), demonstrating that the entire foreclosure pipeline remains active in the “Lone Star State.” The high volume of both new and completed foreclosures in these states indicates persistent affordability issues and financial strain on homeowners despite various economic policies intended to support American families.
Long-term Implications for American Homeowners
ATTOM’s comprehensive analysis, covering more than 99% of the U.S. population across 3,000 counties, provides invaluable insight into the housing market’s health. The May data suggests we’re witnessing a potential inflection point where new defaults may be stabilizing while older distressed properties continue moving through the foreclosure pipeline. For American homeowners, particularly in high-risk states, this mixed picture requires careful attention. While the decrease in foreclosure starts offers some optimism, the significant year-over-year increases in overall foreclosure activity and completed foreclosures indicate underlying vulnerabilities that continue to affect hard-working Americans trying to maintain their piece of the American dream.
