Foreclosure activity doesn’t move in a straight line. It comes in waves. Some months bring a surge of new filings, reflecting fresh financial pressure on homeowners. Others—like November 2025—signal a cooling period in early-stage filings, even though deeper in the foreclosure pipeline, auctions and REOs continue to rise.
For real estate investors, the “Foreclosure Starts” stage—also known as the first public filing—remains one of the most important signals. It offers the earliest insight into where distress is beginning to surface, and where motivated seller activity may soon emerge.
This month’s numbers show a national pullback in new filings, but the story becomes far more nuanced when we look at individual states—and even more revealing when we drill into counties where new stress pockets are forming. Whether you invest locally or analyze markets nationally, understanding where Starts are rising or falling is essential for anticipating future pre-foreclosure opportunities, auction volume, and eventual REO inventory.
National Foreclosure Starts Decline, but Year-Over-Year Trend Remains Elevated
According to the latest data from ATTOM, November 2025 recorded 23,239 Foreclosure Starts nationwide, down 7.65% month over month, but still 16.80% higher year over year than November 2024.
The monthly decline indicates a short-term slowdown in new filings after a busy October. However, the year-over-year increase confirms distress levels remain structurally higher than last year.
The bigger picture? Even with seasonal and monthly fluctuations, early-stage foreclosure activity is trending upward nationally—which means investors should pay attention to how these patterns shift across specific regions.
State-Level Highlights: Five Key Markets to Watch
Foreclosure dynamics vary dramatically across states. Here’s how the five focus states performed in November.
Florida
- 2,819 starts
- -31.84% MoM
- +15.63% YoY
Florida saw the sharpest month-over-month decline of any major foreclosure state. After a significant rise in October, November brought a reset. Still, the year-over-year increase signals long-term upward pressure.
California
- 2,090 starts
- -22.16% MoM
- +6.65% YoY
California cooled both monthly and annually. High insurance premiums and affordability challenges remain stressors, but filings this month loosened compared to earlier in 2025.
Ohio
- 854 starts
- -21.58% MoM
- +7.83% YoY
Ohio experienced a meaningful monthly drop, but the annual increase points to a gradual return to pre-pandemic foreclosure patterns.
North Carolina
- 525 starts
- -17.58% MoM
- +14.13% YoY
North Carolina remains one of the fastest-growing foreclosure states year over year, despite a quieter November. The long-term trend remains elevated.
Texas
- 2,612 starts
- -15.28% MoM
- +2.75% YoY
Texas continues its pattern of elevated but stable foreclosure activity. With a fast nonjudicial foreclosure process, starts here often flow to auction more quickly than in judicial states.
If you would like to see more data from other states, check out our foreclosure reports here.
County-Level Insights: Where Distress Is Rising Beneath the Surface
November’s headline numbers show cooling across the board—but the county-level data reveals the real story: Several key counties experienced meaningful spikes in early-stage filings, even as state totals declined.
These localized increases matter because county-level trends often predict where deals will emerge before they appear at auction or as REOs.
Here are the most notable county-level shifts.
Florida: Hidden pockets of new distress
Even with a steep drop at the state level, several counties showed growing stress signals.
- Hillsborough County (Tampa) posted a noticeable increase in early-stage filings, bucking the state trend.
- Orange County (Orlando) saw a mild but meaningful uptick in Defaults and Lis Pendens.
- Miami-Dade and Broward cooled significantly, pulling the state average downward.
Investor insight
The Gulf Coast and Central Florida remain areas where early distress may reaccelerate in early 2026.
California: Inland Empire stirs again
While statewide Starts fell, a few counties moved in the opposite direction.
- Riverside County recorded a noticeable stabilization in filings, suggesting pressure hasn’t eased.
- San Bernardino County saw early-stage increases specifically tied to investor-owned rentals.
- Los Angeles County was mixed—some ZIP codes cooled, others heated up.
Investor insight
The Inland Empire once again acts as California’s foreclosure bellwether. Keep watching Riverside and San Bernardino for clues about 2026 inventory.
Ohio: Cleveland quieting, Columbus heating up
Ohio’s monthly decline hides county-level divergence.
- Franklin County (Columbus) posted a meaningful MoM increase—one of the state’s few.
- Cuyahoga County (Cleveland) saw a clear drop in Starts after a busy October.
- Hamilton County (Cincinnati) held steady, showing neither surge nor collapse.
Investor insight
Columbus stands out as one of the few Midwestern metros with rising early-stage filings this month.
North Carolina: Charlotte and Raleigh are still driving volume
Despite a statewide MoM decline:
- Mecklenburg County (Charlotte) showed a modest but significant jump in Starts.
- Wake County (Raleigh) also saw new filings rise above October’s pace.
- Cumberland County (Fayetteville) cooled sharply.
Investor insight
North Carolina continues to show long-term upward pressure, driven by its major metros.
Texas: Surprising county-level surge despite statewide declines
Texas saw several standout county-level increases even as statewide Starts fell.
- Harris County (Houston) showed one of the largest MoM increases in the entire state.
- Dallas County posted a modest rise.
- Tarrant County (Fort Worth) remained elevated despite the statewide drop.
Investor insight
Texas’ local markets move quickly—investors monitoring county-level filings gain a real-time advantage before auction calendars fill.
How Investors Can Use Foreclosure Start Data to Build Opportunity
Tracking Foreclosure Starts empowers investors in three major ways.
1. Identifying pre-foreclosure opportunities early
Investors who connect with owners before a Notice of Sale is issued often have:
- More time for negotiation.
- More flexible deal structures.
- The potential for deeper discounts.
Higher Starts in specific neighborhoods can signal where seller outreach may be most effective.
2. Predicting auction volume months in advance
A rise in Starts typically translates into increased Notice of Sale activity 60 to 120 days later.
Investors planning to attend courthouse auctions or purchase trustee-sale properties benefit from anticipating where volume will appear next.
3. Understanding future REO supply: Starts – Notice of Sale – REO
This pipeline is predictable. When Starts rise today, REOs rise months later—especially in fast-moving states like Texas.
Investors buying with a Self-Directed IRA or Solo 401(k) benefit from the slower pace of the pre-foreclosure window. It provides time to coordinate:
- Non-recourse financing.
- Title work.
- Property inspections.
- Investment partner structures.
- Long-term buy-and-hold planning.
Foreclosure Start data is a strategic early-warning system for long-term opportunity.
Take Control of Your Investment Strategy
Foreclosure trends are becoming more local, data-driven, and predictable. Investors who understand where early distress is emerging—and why—put themselves in the best possible position to act when the right deal appears.
If you want to explore how to use a retirement account to invest in real estate—such as a Self-Directed IRA or Solo 401(k)—you can learn more at Equity Trust Company.
Equity Trust Company is a directed custodian and does not provide tax, legal, or investment advice. Any information communicated by Equity Trust is for educational purposes only, and should not be construed as tax, legal, or investment advice. Whenever making an investment decision, please consult with your tax attorney or financial professional.
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