Foreclosure activity saw a monthly increase in October, with the highest rates in Florida, Nevada, and New Jersey. However, filings remain below last year's levels, highlighting an evolving housing market landscape.

Monthly Foreclosure Activity on the Rise

In October 2024, foreclosure filings impacted 30,784 U.S. properties, reflecting a 4% increase from September. This activity included default notices, scheduled auctions, and bank repossessions, as reported by ATTOM’s U.S. Foreclosure Market Report.

However, despite the monthly uptick, foreclosure filings dropped 11% compared to October 2023, indicating a year-over-year decline in foreclosure trends.

States with the Highest Foreclosure Rates

The states with the highest foreclosure rates in October were:

• Nevada: One in every 2,741 housing units faced a foreclosure filing.
• New Jersey: One in every 3,059 housing units.
• Florida: One in every 3,086 housing units.
• California: One in every 3,152 housing units.
• South Carolina: One in every 3,272 housing units.

Metropolitan Areas Facing the Most Foreclosures

Among major U.S. metropolitan areas, the highest foreclosure rates were recorded in:

• Riverside, CA: One in every 1,978 housing units.
• Cleveland, OH: One in every 2,186 housing units.
• Fresno, CA: One in every 2,247 housing units.
• Indianapolis, IN: One in every 2,293 housing units.
• Las Vegas, NV: One in every 2,314 housing units.

Foreclosure Starts and Completed Repossessions

Lenders initiated the foreclosure process on 20,950 properties in October, a 6% increase from September but a 10% drop from the same month last year. States leading in foreclosure starts included:

• California: 2,915 starts.
• Texas: 2,282 starts.
• Florida: 2,227 starts.
• New York: 1,187 starts.
• Michigan: 1,035 starts.

In total, lenders completed repossession of 2,938 properties (REOs) in October, up 12% from September but down 12% year-over-year.

Key Trends to Watch

ATTOM’s recent findings on zombie foreclosures—homes vacated before foreclosure completion—show a slight quarterly rise but a 20% annual decline, reflecting a broader reduction in foreclosure-related issues over the past year.

However, factors like rising interest rates and potential shifts in economic policy could influence foreclosure activity in 2025.

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