Foreclosure activities do not proceed in a straight line. It comes in waves. Some months bring a wave of new applications, reflecting the new financial pressures on homeowners. Others – such as November 2025 – indicate a cooling off period in the early phase of filings, even as deeper in the foreclosure pipeline auctions and REOs continue to rise.
For real estate investors, the Foreclosure Starts phase, also known as the initial public filing, remains one of the most important signals. It provides the earliest insight into where need is beginning to surface and where motivated seller activity may soon emerge.
This month’s numbers show a national decline in new filings, but the story becomes much more nuanced when we look at individual states — and even more revealing when we dive into counties where new pockets of tension are emerging. Whether investing locally or analyzing markets nationally, understanding where Starts are rising or falling is essential for anticipating future pre-bankruptcy opportunities, auction volume, and final REO inventory.
The number of national foreclosures is starting to decline, but the year-over-year trend remains high
According to the latest data from ATTOM, November 2025 recorded 23,239 bankruptcies nationwide, down 7.65% month-on-month but still 16.80% higher year-on-year than November 2024.
The monthly decline indicates a short-term slowdown in new applications after a busy October. However, the year-on-year increase confirms that emergency levels remain structurally higher than last year.
The bigger picture? Even with seasonal and monthly fluctuations, early-stage foreclosure activity shows a national trend upward, meaning investors should pay attention to how these patterns shift across specific regions.
State Highlights: Five Key Markets to Watch
The dynamics of foreclosure vary dramatically across states. Here’s how the five focus states performed in November.
Florida
- 2,819 starts
- -31.84% MoM
- +15.63% year-on-year
Florida had the sharpest monthly decline of all important exclusion state. After a significant increase in October, November brought a reset. Still, the year-on-year increase points to long-term upward pressure.
California
- 2,090 starts
- -22.16% MoM
- +6.65% annualized
California cooled both monthly and annually. High insurance premiums and affordability challenges remain stressors, but applications are being filed this month loosened compared to rather in 2025.
Ohio
- 854 starts
- -21.58% MoM
- +7.83% year-on-year
Ohio had a meaningful month dropbut the annual increase points to a gradual return to pre-pandemic foreclosure patterns.
North Carolina
- 525 starts
- -17.58% MoM
- +14.13% year-on-year
North Carolina remains one of the fastest growing foreclosure states year after year, despite a quieter November. The long-term trend remains high.
Texas
- 2,612 starts
- -15.28% MoM
- +2.75% annualized
Texas continues its pattern of increased but steady foreclosure activity. With a quick non-judicial foreclosure procedure, starts often flow to auction here faster than in judicial states.
If you would like to see more data from other states, check out our bankruptcy reports here.
Insights at the provincial level: where the need is increasing beneath the surface
The November numbers show a cooling across the board, but the county-level data reveals the real story: Several key counties experienced meaningful spikes in filings early on, even as state totals fell.
These local increases matter because county-level trends often predict where deals will originate before they appear at auction or as REOs.
These are the most striking shifts at the provincial level.
Florida: hidden places with new problems
Even with a steep decline at the state level, several counties showed increasing stress signals.
- Hillsborough County (Tampa) posted a noticeable increase in early enrollment, bucking the state trend.
- Orange County (Orlando) saw mild but meaningful increases in Defaults and Lis Pendens.
- Miami Dade and Broward cooled significantly, dragging the state average down.
Insight for investors
The Gulf Coast and Central Florida remain areas where early needs could increase again in early 2026.
California: Inland Empire is stirring again
While Starts dropped statewide, a few counties moved in the opposite direction.
- Province of Rivierenland registered a noticeable stabilization in the files, indicating that the pressure has not decreased.
- San Bernardino County there were early-stage increases specifically related to investor-owned rentals.
- Los Angeles County was mixed– some zip codes have cooled down, others have warmed up.
Insight for investors
The Inland Empire once again serves as California’s exclusionary factor. Continue to watch Riverside and San Bernardino for clues about the 2026 inventory.
Ohio: Cleveland gets quiet, Columbus gets warmer
The monthly decline in Ohio masks the differences at the county level.
- Franklin County (Columbus) recorded a meaningful increase in the monthly average – one of the few in the state.
- Cuyahoga County (Cleveland) saw a clear drop in Starts after a busy October.
- Hamilton County (Cincinnati) remained stable and showed no increase or collapse.
Insight for investors
Columbus stands out as one of the few metros in the Midwest to rise early registrations this month.
North Carolina: Charlotte and Raleigh continue to provide volume
Despite a statewide decline in MoM:
- Mecklenburg County (Charlotte) showed a modest but significant jump in Starts.
- Wake County (Raleigh) also saw new registrations rise above October’s pace.
- Cumberland County (Fayetteville) cooled down considerably.
Insight for investors
North Carolina continues to show long-term upward pressure, driven by major metro areas.
Texas: Surprising increase at the county level, despite declines statewide
Texas saw several notable increases at the county level, even as starts fell statewide.
- Harris County (Houston) showed one largest MoM is increasing across the state.
- Dallas County experienced a modest increase.
- Tarrant County (Fort Worth) remained high despite the statewide decline.
Insight for investors
Texas’ local markets move quickly: Investors who keep an eye on county-level filings get a real-time advantage before auction calendars fill up.
How investors can use foreclosure seed data to create opportunities
Following Foreclosure Starts offers investors the opportunity to trade in three ways important ways.
1. Early identification of opportunities before foreclosure
Investors who contact 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 the seller has reach maybe most effective.
2. Predict auction volume months in advance
An increase in Starts typically translates into an increase in Notice of Sale activity 60 to 120 days later.
Investors who plan to attend courthouse auctions or purchase properties from trustees benefit from anticipating where the volume will appear next.
3. Understanding the future REO offering: start – Notice of sale – REO
This pipeline is predictable. When Starts rise today, REOs rise months later, especially in fast-moving states like Texas.
Investors who buy with a Self-Directed IRA or Solo 401(k) benefit from the slower pace of the pre-foreclosure period. It provides time for coordination:
- Non-recourse financing.
- Title of work.
- Property inspections.
- Investment partner structures.
- Long-term buy-and-hold planning.
Foreclosure Start data is a strategic early warning system for long-term opportunities.
Take control of your investment strategy
Foreclosure trends are becoming increasingly local, data-driven and predictable. Investors who understand where early problems arise – and why – are in the best possible position to take action when the right deal comes along.
If you’d like to explore using a retirement account to invest in real estate, such as a Self-Directed IRA or Solo 401(k), you can find more information at Stock trust company.
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