Foreclosures Rise 20% Nationwide as Homeowners Struggle With Costs

NEW YORK — Foreclosures across the U.S. climbed sharply in October, raising fresh concerns about cracks in the housing market as homeowners continue to grapple with high interest rates and rising living costs.

Data from real estate analytics firm Attom showed 36,766 properties received foreclosure filings last month — including default notices, scheduled auctions, or bank repossessions — marking a 19% increase from a year earlier and the eighth consecutive month of annual gains.

The report found foreclosure starts up 20% compared to last year, while completed foreclosures jumped 32%. States leading the surge included Florida, South Carolina, and Illinois, with the heaviest activity in Tampa, Jacksonville, Orlando, Riverside (California), and Cleveland.

Attom CEO Rob Barber said the numbers suggest a gradual return to normal levels following years of historic lows, noting that many homeowners are feeling the strain of elevated borrowing and housing costs.

Although foreclosure rates remain well below levels seen during the 2008 financial crisis — less than 0.5% of mortgages compared to over 4% at the time — analysts warn that economic pressures are building.

FHA loan delinquencies have now surpassed 11%, and experts anticipate more defaults in 2026, particularly in states like Florida and Texas where insurance costs have soared.

With home prices still high, mortgage rates hovering near recent peaks, and consumer debt at record levels, market observers say a modest rise in delinquencies and foreclosures is likely in the coming months.