Foreclosures Jumped 21% in November: Here’s What That Means For Buyers in 2025

Foreclosures spike 21% in a single month—and traditional finance scrambles for explanations while crypto markets barely blink.

The Housing Market's Warning Shot

That 21% jump isn't just a statistic; it's a tremor in the foundation of conventional asset markets. It signals stress in a system built on debt, centralized lending, and slow-moving institutions. Buyers facing this turbulence are left navigating a landscape of tightening credit and unpredictable valuations.

Meanwhile, in the digital asset space, a parallel reality unfolds. Decentralized finance protocols operate 24/7, with transparent, on-chain collateralization that doesn't wait for a monthly report. Smart contracts execute—or liquidate—without the drawn-out, human-driven foreclosure process that just got 21% more common.

A Cynical Nod to the Old Guard

It's almost poetic: traditional banks announce another round of 'strategic fee adjustments' just as their loan books show these cracks. They'll manage the paperwork on that 21% increase while collecting their origination fees all over again. A business model older than the internet, perfected.

For the forward-looking buyer, the message is clear. The old playbook is showing its age. The new one is being written on blockchains, where asset ownership is verifiable, global, and free from a single point of failure. This isn't just a housing trend—it's a case study in systemic resilience.

Key Takeaways

• Foreclosure activity in November was 21% higher than the same period last year, continuing a trend this year of rising levels of defaults, auctions and bank repossessions.
• Data firm ATTOM reported that foreclosure activity was highest in Delaware, South Carolina, Nevada, New Jersey and Florida.
• Whether the jump in foreclosures will bring more housing supply to market depends on local laws and market trends, said ATTOM CEO Rob Barber.

For years, prospective home buyers have been faced with high prices and very little inventory for sale. However, a recent surge in foreclosures could alter that dynamic.

Real estate data firm ATTOM reported that November foreclosure activity ROSE by 21% compared with the same month last year, with default notices, scheduled auctions and bank repossessions moving higher on an annual basis. The ATTOM report showed that one in every 3,992 U.S. housing units had a foreclosure filing in November 2025.

Why This is Important for the Economy

Rising foreclosure activity matters because it can signal growing financial stress among households, which in turn shapes expectations for credit conditions, housing affordability, and broader economic resilience. The impact on home prices and inventory can be uneven, making it important for buyers and investors to track local data rather than rely on nationwide trends.

“The data suggests the market is still normalizing as some homeowners contend with higher housing costs and shifting economic pressures," said Rob Barber, CEO at ATTOM. 

It’s the ninth straight month of year-over-year increases in foreclosure activity, highlighting a growing trend in 2025 for the U.S. housing market, which has been hampered by weak inventory levels that offer buyers too few options.

Impact of Foreclosures on Housing Supply Depends on State Laws, Local Markets

Whether the trend of rising foreclosures will lead to more supply in the housing market will depend on where you live, Barber said.

“Rising foreclosure rates may add some inventory to the for-sale market, but ATTOM’s data trends show that current increases remain well below historic highs, limiting their overall impact,” Barber wrote in a commentary. “Any boost in supply is likely to be localized, concentrated in markets where delinquency and foreclosure activity are accelerating more quickly than the national pace.”

These housing markets are likely to be located in Delaware, South Carolina, Nevada, New Jersey and Florida, which ATTOM said had the highest rates of foreclosure activity in November. Philadelphia, Las Vegas, Cleveland and the Florida cities of Orlando and Tampa led the list of big metro areas with elevated foreclosure activity.

“Foreclosure-to-market timelines vary significantly by state, largely due to differences in judicial vs. non-judicial processes,”  Barber wrote.

Related Education

Some states, like Delaware, South Carolina and Florida, have a judicial process that requires a lender to file a foreclosure suit in court, while states like Nevada and California don’t require lenders to get a court order before moving forward with a foreclosure sale.

“In judicial states, the process can stretch well over a year, while in faster non-judicial states, properties may reach the market in just a few months, creating wide variation in when price effects show up,” Barber wrote. “Stricter regulations, longer timelines, or weak local demand can delay or even limit how many distressed properties ultimately reach active listings.”

Recent data has also shown that borrowers with government-backed Federal Housing Administration (FHA) mortgage loans—generally used by first-time homebuyers—are seeing higher rates of foreclosure activity.

Recent data indicate that rising delinquencies and foreclosures in government-backed Federal Housing Administration loans are contributing to the current increase. Analysts said this highlights a growing disparity between wealthy and lower-income homebuyers.