Foreclosure filings in the United States have reached their highest level in six years during the first quarter, driven by mounting financial pressures on homeowners from rising insurance premiums and property tax bills.
Data from Attom reveals approximately 119,000 properties received foreclosure filings in the first quarter—a 26% increase from the same period the previous year, according to The Wall Street Journal. This figure represents the highest quarterly count since the first three months of 2020, when COVID-19 pandemic relief measures suppressed foreclosure activity.
Industry analysts emphasize the current rate reflects a return to pre-pandemic norms rather than widespread homeowner distress. Many borrowers who secured mortgages before 2022 continue benefiting from low interest rates, yet face escalating costs from insurance, property taxes and homeowners association fees.
The average annual homeowners insurance premium reached $2,948 in 2025, jumping 12% year-over-year, according to Insurify. Property tax burdens also climbed 3% to an average of $4,427 nationally, Attom data shows.
Average monthly mortgage payments across all outstanding U.S. mortgages hit $2,005 in the fourth quarter of last year, Realtor.com reported—the first time the threshold has been crossed. New homebuyers face particularly steep payments given today’s elevated mortgage rates, while those who purchased in recent years at higher rates may find themselves underwater if home values decline in their areas.
The phase-out of pandemic-era foreclosure relief programs has limited options for homeowners experiencing financial difficulty. The Federal Housing Administration announced in October that borrowers may access loan modification assistance only once every 24 months.