Foreclosure Activity Rises in Q1 2025 — What It Means for Real Estate Investors and Fix and Flip Investors
- umer qureshi
- 4 days ago
- 2 min read
The U.S. real estate market is seeing a shift as foreclosure activity rises nationwide. For investors focused on fix-and-flip, BRRRR, or ground-up construction projects, this trend represents a potential window of opportunity.
Foreclosure Trends in Early 2025
According to ATTOM’s Q1 2025 U.S. Foreclosure Market Report, foreclosure filings were recorded on 93,953 U.S. properties during the first quarter — up 11% from Q4 2024, though slightly below Q1 of last year. This marks the first quarterly increase in foreclosure activity after three straight quarters of decline. Key statistics from the report include:
Foreclosure starts: 68,794 properties began the foreclosure process, up 14% from the previous quarter.
Lender repossessions (REOs): 9,691 properties, up 8% quarter-over-quarter.
Average foreclosure process time: 671 days, a 12% drop from the previous quarter.
States with the highest foreclosure rates include:
Delaware (1 in every 761 housing units)
Illinois
Nevada
Indiana
South Carolina
And significant foreclosure activity was also observed in major markets like Texas, California, New York, and New Jersey, where large metro areas such as Houston, Los Angeles, New York City, and Newark showed increased filings. Investors in these states should be particularly watchful of opportunities emerging in both urban and suburban submarkets.
March 2025 Snapshot
In March alone:
35,890 properties had foreclosure filings (up 11% from February)
25,070 foreclosure starts were recorded (up 10% from the previous month)
3,687 properties were repossessed by lenders (up 22% month-over-month and 37% year-over-year)
This growing inventory of distressed properties is creating new opportunities for those ready to act quickly and strategically.
How to Take Advantage — Fast Funding for Your Next Fix and Flip Project
If you’re preparing to purchase a distressed property or already have one under contract, Faundare Capital can help you secure fast financing to move forward without delay. Our 100% Fix & Flip Loan is designed to support real estate investors with:
No income verification
No down payment required
Same-day loan approval
Funding delivered in as little as 5–10 business days
To begin the process, we’ll simply need:
A clear statement of work
Three months of recent bank statements
A signed purchase agreement
Once submitted, our team can provide same-day approval and work with you to close quickly — helping you secure the property before competitors.
Why This Market Matters for Investors
Foreclosure investment opportunities are increasing, and while levels remain below pre-pandemic averages, the upward trend signals a return to more typical market behavior. For real estate investors, especially in competitive states like Texas, California, New York, New Jersey, and Florida, staying ahead of these trends is crucial to maximizing return on investment (ROI).
With strong equity positions still protecting many homeowners, the current foreclosure activity presents a strategic niche — particularly for those targeting value-add renovations or fix-and-flip projects. At Faundare Capital, we help real estate investors capitalize on changing market conditions with fast, flexible lending solutions — including our signature 100% Fix and Flip Loan.
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