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Top 20 Foreclosure States and Cities in the U.S. as of January 2025
The real estate market in the United States has been experiencing fluctuations, and foreclosure activity remains a key indicator of economic stress in certain regions. As of January 23, 2025, some states and cities are seeing higher foreclosure rates than others. Whether you're a homeowner, investor, or simply curious about the housing market, understanding these trends can help you make informed decisions.
Here’s a breakdown of the top 20 states and cities with the highest foreclosure activity as of early 2025.
**Top 20 States for Foreclosures**
Below are the states with the most significant foreclosure activity, ranked by the number of filings and foreclosure rates:
1. **California**
- Foreclosure filings: 3,772 (December 2024)
- Total foreclosure starts in 2024: 29,529
- California continues to lead due to its large housing market and high property values.
2. **Texas**
- Foreclosure filings: 2,868
- Total foreclosure starts in 2024: 28,946
3. **Florida**
- Foreclosure filings: 2,652
- Total foreclosure starts in 2024: 29,239
4. **New York**
- Foreclosure filings: 1,524
- Foreclosure rate: 1 in every 5,574 housing units
5. **Illinois**
- Foreclosure filings: 1,446
- Foreclosure rate: 1 in every 3,753 housing units
6. **Ohio**
- Foreclosure filings: 1,431
- Foreclosure rate: 1 in every 3,670 housing units
7. **Michigan**
- Foreclosure filings: 1,170
- Foreclosure rate: 1 in every 3,915 housing units
8. **New Jersey**
- Foreclosure filings: 1,147
- Foreclosure rate: 1 in every 3,275 housing units
9. **Indiana**
- Foreclosure filings: 1,035
- Foreclosure rate: 1 in every 2,833 housing units
10. **Maryland**
- Foreclosure filings: 778
- Foreclosure rate: 1 in every 3,253 housing units
11. **Pennsylvania**
- Foreclosure filings: 1,203
- Foreclosure rate: 1 in every 4,783 housing units
12. **North Carolina**
- Foreclosure filings: 687
- Foreclosure rate: 1 in every 6,899 housing units
13. **Georgia**
- Foreclosure filings: 643
- Foreclosure rate: 1 in every 6,885 housing units
14. **Arizona**
- Foreclosure filings: 515
- Foreclosure rate: 1 in every 6,015 housing units
15. **South Carolina**
- Foreclosure filings: 491
- Foreclosure rate: 1 in every 4,811 housing units
16. **Massachusetts**
- Foreclosure filings: 487
- Foreclosure rate: 1 in every 6,159 housing units
17. **Nevada**
- Foreclosure filings: 476
- Foreclosure rate: 1 in every 2,707 housing units
18. **Alabama**
- Foreclosure filings: 411
- Foreclosure rate: 1 in every 5,589 housing units
19. **Virginia**
- Foreclosure filings: 407
- Foreclosure rate: One of the lowest among the top states (1 in every 8,907 housing units).
20. **Missouri**
- Foreclosure filings: Over 393
- Notable for its growing foreclosure activity over the past year.
**Top Cities for Foreclosures**
In addition to state-level data, specific cities and metro areas are experiencing concentrated foreclosure activity. Here are the top cities with the highest foreclosure rates:
**Top Metro Areas**
- **Los Angeles County (California)** – The highest number of foreclosure filings nationwide with over *898* cases reported recently.
- **Harris County (Texas)** – Leads Texas with *784* foreclosure filings.
- **Miami-Dade County (Florida)** – Florida’s hotspot for foreclosures with *712* cases.
- **Cook County (Illinois)** – Illinois’ leader with *642* foreclosure cases.
- **Wayne County (Michigan)** – Michigan’s top county for foreclosures with *482* cases.
- **Cuyahoga County (Ohio)** – Ohio’s most affected area with *365* cases.
Other Notable Metro Areas:
- Lakeland-Winter Haven (Florida): One of the highest metro foreclosure rates at *1 in every 172 homes*.
- Atlantic City (New Jersey): Affected by economic challenges with *1 in every 200 homes* foreclosed.
- Columbia (South Carolina): High rates with *1 in every 204 homes* foreclosed.
- Cleveland (Ohio): Struggling with *1 in every 208 homes* foreclosed.
- Las Vegas (Nevada): Affected by rising costs and economic pressures at *1 in every 231 homes*.
**What’s Driving These Trends?**
The increase in foreclosures across these states and cities is influenced by several factors:
- Rising interest rates have made it harder for homeowners to refinance or afford adjustable-rate mortgages.
- Inflationary pressures have increased household expenses while wages have not kept pace.
- Certain regions have seen slower job growth or industry-specific downturns that impact homeowners' ability to keep up with mortgage payments.
**What Does This Mean for Homeowners and Investors?**
For homeowners facing financial challenges:
- Be proactive about seeking assistance from lenders or government programs to avoid foreclosure.
- Consider selling your home before falling too far behind on payments.
For investors:
- These areas may present opportunities to purchase distressed properties at a discount.
- However, due diligence is essential to ensure profitability when investing in foreclosed properties.
**Final Thoughts**
The real estate market is always shifting, and foreclosure trends are an important metric to watch closely. While some states like California and Texas dominate due to their size and population density, smaller states like New Jersey and Nevada are experiencing disproportionately high rates of foreclosure relative to their size.
Whether you're a homeowner looking for solutions or an investor seeking opportunities, staying informed about these trends will help you navigate the current market effectively.