By Naveen Athrappully
The number of properties with foreclosure filings across the United States was 35,498 in May, down 1 percent from a month back, real estate analytics company ATTOM said in a June 10 statement.
May’s monthly decline in filings broke the continuous month-over-month increases seen in the January–April months of the year.
ATTOM CEO Rob Barber said May’s overall foreclosure activity showed a “mixed picture,” with fewer foreclosure starts and a “continued rise in completed foreclosures.”
“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.”
Nationwide, one in every 4,009 housing units made a foreclosure filing last month. Delaware led the list, with one in 2,313 units filing for foreclosure. This was followed by Florida, Illinois, Nevada, and Indiana.
Among the 110 metropolitan statistical areas analyzed that had a population of at least half a million, Lakeland, Florida, had the highest foreclosure rate. This was followed by Cape Coral and Jacksonville, both also in Florida. Bakersfield and Riverside, both in California, rounded up the top five.
Despite a decline in May filings, monthly increases from the start of 2025 suggest a strong uptrend in foreclosures. This comes at a time when mortgage rates have remained elevated for a long period.
The average weekly rate on a 30-year fixed-rate mortgage moved in a range of 6.6–7.05 percent during the January–May period, according to data from Freddie Mac. Four years ago, rates were in a range of 2.65–3.18 percent during the same period.
Rates breached the 6 percent level back in September 2022 and have not dropped below it for a single week.
High mortgage rates can put pressure on homeowners with variable-rate mortgages as they have to keep making high monthly payments. This can push some into financial distress, raising the possibility of foreclosures.
Tackling Foreclosure
If a person is facing foreclosure on their properties, they will still be able to negotiate certain payment solutions with lenders, the Federal Trade Commission (FTC) said in a September 2023 post.
A reinstatement agreement can be requested for lenders facing temporary financial challenges.
Under this deal, the individual agrees to pay the entire pay-due amount, together with fees and other penalties, at a fixed date, said the FTC. However, this wouldn’t be a practical solution for someone living in a home they cannot afford.
Forbearance is another solution for homeowners temporarily struggling to pay their monthly mortgages.
“With forbearance, your mortgage servicer or lender agrees to lower or pause your payments for a short time. When you start making payments again, you’ll make your regular payments plus extra, make-up payments to catch up,” the agency said.
“The lender or servicer might decide that extra payments can be either a lump sum or partial payments. Like reinstatement, forbearance also won’t help you if you’re in a home you can’t afford.”
Lawmakers are taking steps to protect Americans from foreclosures.
In Washington state, Gov. Bob Ferguson signed SB 5686 into law on May 20 to expand and fund the state’s foreclosure mediation program, whereby a third party helps a homeowner and lender to reach an agreement.
Northwest Justice Project (NJP), the only statewide legal aid organization in Washington offering free representation to homeowners facing foreclosure, welcomed the passage of the bill in a May 21 statement.
“The alarming 54 percent spike in our state’s foreclosure rates shows that low-income families across Washington are facing severe economic hardship and urgently need support to keep their homes,” said Abigail Daquiz, executive director at NJP.
“This bill will be a lifeline for struggling families in these rough economic times.”
