Florida to Have Most Foreclosures in US by 2025 as Rates Continue to Rise Nationwide
Foreclosures continued to rise last year, with Florida leading the nation, although mortgage defaults remain very low compared to historical levels.
In 2025, foreclosure filings were reported on 367,460 US properties, up 14 percent from 2024 but still 25 percent below 2019, before pandemic disruptions changed housing market dynamics, according to year-end data from housing analytics firm ATTOM.
Florida had the highest rate of foreclosures of any state last year, with foreclosures filling 0.44% of the Sunshine State’s residential properties. Next were Delaware (0.42%), South Carolina (0.41%), and Illinois (0.40%).
“Florida leads the nation in filings, as homeowners there face heightened pressures to afford rising insurance costs, property taxes, and the overall cost of ownership,” said Realtor.com® chief economist. Hannah Jones.
“The growth of domestic housing has reduced demand in parts of the state, which contributes to slower price growth and longer periods in the market. Together, these changes increase the risk of foreclosure for some homeowners, especially those who bought near the top of the market or carry high monthly costs,” Jones adds.
Meanwhile, the states with the lowest foreclosure rates in 2025 were South Dakota (0.03%), Vermont (0.05%), and Montana (0.07%).
Nationwide, 0.26% of residences had a delinquency file last year, which is less than the 0.36% seen in 2019 and well below the peak disaster rate of 2.23% recorded in 2010.
“Foreclosure activity increased in 2025, indicating continued normalization of the housing market following several years of low rates,” it said. Rob BarberCEO of ATTOM. “While fillings, starts, and repossessions are up compared to 2024, foreclosure activity remains below pre-pandemic trends and a fraction of what we saw during the housing crisis.”
Barber says the current uptick in confidence is due to a market correction rather than widespread homeowner distress, with strong equity positions and leveraged lending continuing to limit risk.
Aggregate home owner equity as a share of total real estate was 71.6% in the third quarter, down from a record high but remarkably healthy, according to the latest Federal Reserve data.
It means that even if homes were to lose 10% of their value overnight, home owners’ equity would still be at 68.4%, a level that is still strong, limiting the risk of foreclosures going underwater.
Foreclosure filings jumped 57% in December
The ATTOM report also includes new data for December 2025, which shows there were 44,990 US properties with information disclosures last month, up 26% from the previous month and 57% over last year.
The states with the highest number of foreclosures in December 2025 were New Jersey (1 in every 1,734 homes with a foreclosure file), South Carolina (1 in every 1,917 homes) and Maryland (1 in every 1,961 homes).
At the municipal level among cities with 1 million people or more, Baltimore led the nation in foreclosure rates last month, followed by Cleveland and Philadelphia.
San Jose, CA, had the lowest number of closings of all major metros in December, followed by Milwaukee and Kansas City.
