{"id":12996,"date":"2025-07-17T20:26:32","date_gmt":"2025-07-18T00:26:32","guid":{"rendered":"https:\/\/360legal.net\/blog\/?p=12996"},"modified":"2025-07-18T09:55:36","modified_gmt":"2025-07-18T13:55:36","slug":"foreclosures-up-year-over-year-is-the-dam-finally-about-to-burst","status":"publish","type":"post","link":"https:\/\/360legal.net\/blog\/foreclosures-up-year-over-year-is-the-dam-finally-about-to-burst\/","title":{"rendered":"Foreclosures Up Year-Over-Year: Is the Dam Finally About to Burst?"},"content":{"rendered":"<p><strong>By: Rick Sharga,<br \/>\n<\/strong><strong>Founder &amp; CEO, CJ Patrick Company<\/strong><\/p>\n<p>ATTOM released its <a href=\"https:\/\/www.attomdata.com\/news\/market-trends\/foreclosures\/mid-year-2025-foreclosure-market-report\/\" target=\"_blank\" rel=\"nofollow noopener\">Mid-year 2025 Foreclosure Report<\/a>, noting that foreclosure activity \u2013 foreclosure starts, notices of sale, and REO actions were up almost 7% compared to the first half of 2024. Is this \u2013 finally \u2013 an indication that the historically low levels of foreclosure activity we&#8217;ve seen since mid-2020 are about to revert to normal?<\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/www.attomdata.com\/news\/market-trends\/foreclosures\/mid-year-2025-foreclosure-market-report\/\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-12999\" src=\"https:\/\/360legal.net\/blog\/wp-content\/uploads\/2025\/07\/output-1024x508.png\" alt=\"service of process for foreclosure\" width=\"662\" height=\"329\" \/><\/a><\/p>\n<p>There were foreclosures started on over 140,000 loans in the first half of this year, a 7% increase from a year ago. REO actions (lender repossessions) were up even more dramatically: the 21,000 properties repossessed was 12% higher than last year&#8217;s mid-year total. And foreclosures were being executed much more quickly than a year ago \u2013 the average 645 days it took to complete a foreclosure across the country was 21% faster than in the first half of 2024.<\/p>\n<p>June foreclosure numbers also showed some acceleration. The 21,782 foreclosure starts in the month were 17% more than June last year, and REO actions were up a whopping 35% from 2024 totals at just under 3,900. (To see the full report from ATTOM, <a href=\"https:\/\/www.attomdata.com\/news\/market-trends\/foreclosures\/mid-year-2025-foreclosure-market-report\/\" target=\"_blank\" rel=\"nofollow noopener\">click here<\/a>.)<\/p>\n<h2>Market Dynamics Point Towards Rising Numbers<\/h2>\n<p>For default <a href=\"https:\/\/www.360legal.net\/about\/360legal-our-team.html\">servicing professionals<\/a>, this report is encouraging, and might suggest that after declining unexpectedly in 2024, foreclosure actions might be on pace to reach their highest numbers since 2019. Other data suggests that market dynamics are shifting in a way that could result in more foreclosure activity than we&#8217;ve seen over the past five years:<\/p>\n<ul>\n<li>Consumer debt hit a record high of $18.2 trillion in the first quarter of 2025<\/li>\n<li>Serious delinquency rates on consumer credit \u2013 auto loans, credit cards, and student loans \u2013 is at or above pre-pandemic levels<\/li>\n<li><a href=\"https:\/\/360legal.net\/blog\/master-foreclosure-deadlines\/\">Mortgage delinquency<\/a> rates have increased for two consecutive quarters<\/li>\n<li>And, according to Auction.com, foreclosure sales are up 20% year-over-year<\/li>\n<\/ul>\n<h2>FHA Portfolio Likely to Add the Most New Foreclosure Actions<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-13000\" src=\"https:\/\/360legal.net\/blog\/wp-content\/uploads\/2025\/07\/foreclosure-rates-rising-2025.jpg\" alt=\"foreclosure rates rising 2025\" width=\"300\" height=\"200\" \/>The FHA portfolio of loans is especially worth watching as we move through the second half of the year, particularly on loans issued since 2022, in markets where property values are flat or declining. Roughly 11% of FHA loans are delinquent \u2013 775,000 loans in all \u2013 at a time when FHA&#8217;s loss mitigation program is about to tighten up. Borrowers who had previously been able to forestall foreclosures by cycling through the FHA&#8217;s partial claims program multiple times will no longer be able to do so, meaning that a higher percentage of delinquent FHA loans will roll over from delinquency into foreclosure over the second half of the year.<\/p>\n<p>And distressed FHA borrowers with recently issued loans may be the most vulnerable. Here&#8217;s a nightmare scenario for these borrowers:<\/p>\n<ul>\n<li>Purchased a home when or after the market peaked in 2022 with a 3.5% down payment loan<\/li>\n<li>Home is located in a market where home prices have declined, like Texas or Florida<\/li>\n<li>Property insurance premiums have doubled \u2013 or tripled \u2013 in the past few years<\/li>\n<li>Household has suffered a loss of income, and began missing mortgage payments<\/li>\n<\/ul>\n<p>While this scenario will probably only apply to a small percentage of the FHA book of business, there&#8217;s little chance that these borrowers will escape without a foreclosure, or perhaps a short sale.<\/p>\n<h2>Not a Tsunami \u2013 but a Slowly Rising Tide<\/h2>\n<p>Rising delinquencies and foreclosure starts \u2013 driven in large part by a deteriorating pool of FHA loans \u2013 will likely result in overall foreclosure activity increasing in 2025, but probably not quite getting back to pre-pandemic levels. And it&#8217;s important to keep things in context: 2019 was the ninth straight year that foreclosure activity declined, after peaking in 2010; so even a return to that level of activity doesn&#8217;t constitute a foreclosure tsunami by any means.<\/p>\n<p>But after five years of artificially suppressed delinquencies, defaults, and foreclosures, it does look like the road ahead is finally leading back to a more normal market environment.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>https:\/\/360legal.net\/blog\/foreclosures-up-year-over-year-is-the-dam-finally-about-to-burst\/ The foreclosure market is showing significant signs of acceleration in 2025, with foreclosure starts jumping 7% in the first half of the year compared to 2024. Over 140,000 loans entered foreclosure proceedings, while REO actions surged 12% as lenders repossessed 21,000 properties. Even more striking, foreclosures are now being completed 21% faster than last year, averaging just 645 days nationwide. Market dynamics are shifting dramatically as consumer debt hits a record $18.2 trillion, mortgage delinquencies rise for two consecutive quarters, and FHA loans face tightening loss mitigation programs. With 775,000 FHA loans currently delinquent and new restrictions on partial claims programs, the second half of 2025 could see the highest foreclosure activity since 2019. This isn&#8217;t a foreclosure tsunami, but rather a slowly rising tide returning the market to more normal conditions after five years of artificially suppressed activity.<\/p>\n","protected":false},"author":1,"featured_media":13003,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"Foreclosures Surge Year Over\u2011Year: Is the Dam About to 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Weaver","author_link":"https:\/\/360legal.net\/blog\/author\/admin360\/"},"featured_img":"https:\/\/360legal.net\/blog\/wp-content\/uploads\/2025\/07\/Foreclosure-FI-300x229.jpg","coauthors":[{"link":"https:\/\/360legal.net\/blog\/author\/admin360\/","display_name":"Mike Weaver"}],"tax_additional":{"categories":{"linked":["<a href=\"https:\/\/360legal.net\/blog\/process-service\/foreclosure-processing\/\" class=\"advgb-post-tax-term\">Foreclosure processing<\/a>","<a href=\"https:\/\/360legal.net\/blog\/process-service\/\" class=\"advgb-post-tax-term\">Process Service<\/a>"],"unlinked":["<span class=\"advgb-post-tax-term\">Foreclosure processing<\/span>","<span class=\"advgb-post-tax-term\">Process Service<\/span>"]},"tags":{"linked":["<a href=\"https:\/\/360legal.net\/blog\/process-service\/\" class=\"advgb-post-tax-term\">#Foreclosure<\/a>","<a href=\"https:\/\/360legal.net\/blog\/process-service\/\" class=\"advgb-post-tax-term\">ATTOM<\/a>","<a href=\"https:\/\/360legal.net\/blog\/process-service\/\" class=\"advgb-post-tax-term\">default servicing<\/a>","<a href=\"https:\/\/360legal.net\/blog\/process-service\/\" class=\"advgb-post-tax-term\">delinquency<\/a>","<a href=\"https:\/\/360legal.net\/blog\/process-service\/\" class=\"advgb-post-tax-term\">FHA<\/a>","<a href=\"https:\/\/360legal.net\/blog\/process-service\/\" class=\"advgb-post-tax-term\">FHA loans<\/a>","<a href=\"https:\/\/360legal.net\/blog\/process-service\/\" class=\"advgb-post-tax-term\">foreclosure activity<\/a>","<a href=\"https:\/\/360legal.net\/blog\/process-service\/\" class=\"advgb-post-tax-term\">foreclosure market<\/a>","<a href=\"https:\/\/360legal.net\/blog\/process-service\/\" class=\"advgb-post-tax-term\">foreclosure report<\/a>","<a href=\"https:\/\/360legal.net\/blog\/process-service\/\" class=\"advgb-post-tax-term\">foreclosure starts<\/a>","<a href=\"https:\/\/360legal.net\/blog\/process-service\/\" class=\"advgb-post-tax-term\">lender repossessions<\/a>","<a href=\"https:\/\/360legal.net\/blog\/process-service\/\" class=\"advgb-post-tax-term\">mortgage<\/a>","<a href=\"https:\/\/360legal.net\/blog\/process-service\/\" class=\"advgb-post-tax-term\">mortgage delinquency<\/a>","<a href=\"https:\/\/360legal.net\/blog\/process-service\/\" class=\"advgb-post-tax-term\">property values<\/a>","<a href=\"https:\/\/360legal.net\/blog\/process-service\/\" class=\"advgb-post-tax-term\">REO<\/a>","<a href=\"https:\/\/360legal.net\/blog\/process-service\/\" class=\"advgb-post-tax-term\">REO actions<\/a>"],"unlinked":["<span class=\"advgb-post-tax-term\">#Foreclosure<\/span>","<span class=\"advgb-post-tax-term\">ATTOM<\/span>","<span class=\"advgb-post-tax-term\">default servicing<\/span>","<span class=\"advgb-post-tax-term\">delinquency<\/span>","<span class=\"advgb-post-tax-term\">FHA<\/span>","<span class=\"advgb-post-tax-term\">FHA loans<\/span>","<span class=\"advgb-post-tax-term\">foreclosure activity<\/span>","<span class=\"advgb-post-tax-term\">foreclosure market<\/span>","<span class=\"advgb-post-tax-term\">foreclosure report<\/span>","<span class=\"advgb-post-tax-term\">foreclosure starts<\/span>","<span class=\"advgb-post-tax-term\">lender repossessions<\/span>","<span class=\"advgb-post-tax-term\">mortgage<\/span>","<span class=\"advgb-post-tax-term\">mortgage delinquency<\/span>","<span class=\"advgb-post-tax-term\">property values<\/span>","<span class=\"advgb-post-tax-term\">REO<\/span>","<span class=\"advgb-post-tax-term\">REO actions<\/span>"]}},"comment_count":0,"relative_dates":{"created":"Posted 9 months ago","modified":"Updated 9 months ago"},"absolute_dates":{"created":"Posted on July 17, 2025","modified":"Updated on July 18, 2025"},"absolute_dates_time":{"created":"Posted on July 17, 2025 8:26 pm","modified":"Updated on July 18, 2025 9:55 am"},"featured_img_caption":"","series_order":null,"publishpress_future_action":{"enabled":false,"date":"2026-04-19 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