A total of 35,498 residential properties had foreclosure filings in May, according to new data from ATTOM. That level marked a 1% decline from April, but it was also a 9% uptick from May 2024.
Nationwide, one in every 4,009 housing units had a foreclosure filing last month. The states with the worst foreclosure rates were Delaware (one in every 2,313 housing units with a foreclosure filing); Florida (one in every 2,536 housing units); Illinois (one in every 2,668 housing units); Nevada (one in every 2,747 housing units); and Indiana (one in every 2,983 housing units).
Lenders started the foreclosure process on residential U.S. properties in May, down 4% from the prior month but up 8% from one year earlier. Lenders repossessed 3,844 residential properties through completed foreclosures (REOs) in May, a 7% month-over-month increase and a 34% year-over-year spike.
“Foreclosure activity in May reflected a mixed picture with fewer starts but a continued rise in completed foreclosures,” said Rob Barber, CEO at ATTOM. “This suggests that while fewer new defaults are being initiated, lenders may still be working through a backlog of existing cases. We’ll be watching closely in the months ahead to see how these trends evolve.”
