The nation’s foreclosure pipeline is beginning to move faster—and in some markets, it’s getting bigger. ATTOM’s mid-year numbers show a 5.8% year-over-year increase in total foreclosure filings for the first half of 2025.

While still far below historical peaks, the uptick is paired with a more telling trend: it’s taking less time for properties to move from default to completion.

The average foreclosure now takes 645 days, down 21% from last year’s 816-day average. For REO professionals, that acceleration means assets could be hitting the market sooner after distress begins—changing both the volume and pace of assignments.

‍REO Activity Leading the Increase

The most significant jump came from completed repossessions (REOs), which rose 12% from the first half of 2024. Foreclosure starts also ticked up 7%, suggesting the pipeline is filling from both ends.

‍Markets leading the climb in filings include:

• Alaska (+55% YoY)
• Rhode Island (+50%)
• Wyoming (+48%)
• Utah (+46%)
• Colorado (+41%)

These states, along with a handful of others showing double-digit increases, could see more distressed inventory in circulation before the year’s end.

‍What the Numbers Don’t Show—Yet

National totals remain tempered by strong homeowner equity and continued loss mitigation efforts, but not every market is insulated. In some regions, price softening, rising property taxes, and higher insurance costs are pushing certain homeowners closer to distress.

For agents and brokers in REO, now is the time to:

• Track local timelines — Faster foreclosure completions mean less lead time between default and listing.
• Strengthen servicer relationships — States with rising filings could become near-term sources of opportunity.
• Stay market-aware — Even modest changes in equity or employment trends can create localized surges in filings.

The Bottom Line

The latest data points to a market where foreclosure activity is gradually expanding and moving more quickly. For those prepared to move with it, the second half of 2025 could bring a mix of volume growth and shorter assignment cycles.

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