through to foreclosure auction. The VA numbers should normalize in future quarters as that backlog is worked through. Additionally, a new partial claim loss mitigation option for VA borrowers is now available thanks to a bill passed by Congress and signed into law by President Donald Trump July 30. Aside from that VA outlier, foreclosure auction volume in the second quarter was still up broadly from a year ago across all other loan types except for loans insured by the U.S. Department of Agriculture (USDA) (see Fig. 2). Completed foreclosure auctions on those USDA-guaranteed loans dipped by 2% from a year ago, while completed foreclosure auctions increased 14% for loans backed by the Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac and increased 8% for loans insured by the Federal Housing Administration (FHA). Completed foreclosure auctions on privately held loans increased 5%. FORECLOSURE AUCTION TRENDS BY STATE Completed foreclosure auction volume in second quarter 2025 increased from a year ago in 32 states and the District of Columbia (see Fig. 3). States with the largest increases were Nebraska (up 222%), Arizona (up 134%), Vermont (up 100%), Texas (up 83%), and Hawaii (up 81%). The rapid rise in distressed auction inventory in some markets is causing some buyers to be more cautious in their acquisition strategy. In the July survey, 38% of Auction.com buyers surveyed said the current market environment is making them less willing to buy at
FIGURE 2. Q2 FORECLOSURE AUCTION VOL. BY LOAN TYPE
auction, up slightly from the previous quarter and up from 34% a year ago. “Tariffs are keeping interest rates high, keeping material cost high, and contractors are still busy,” wrote a Vermont-based survey respondent. “I’m anticipating these will negatively impact the economy. I’m also anticipating a slowdown in Q3 … and don’t want to have too many irons in the fire. … I’m still keeping reserves as I don’t want to pass up a good deal.” Despite the impressive percentage increases in many states, completed foreclosure auction volume in second quarter 2025 remained below pre- pandemic (Q1 2020) levels in all but eight states and the District of Columbia. Those states were Connecticut,
Colorado, Louisiana, Iowa, Minnesota, Oklahoma, Kansas, and Hawaii.
FORECLOSURE AUCTION TRENDS BY METRO As shown in Figure 4, at the metro level, foreclosure auction volume in second quarter 2025 remained below pre-pandemic levels in 62 of 80 major markets (78%). Exceptions where second quarter foreclosure auction volume matched or exceeded pre- pandemic levels included Houston, Minneapolis-St. Paul, New Orleans, Baton Rouge, Indianapolis, and Denver. Foreclosure auction volume in second quarter 2025 increased from a year ago in 57 of the 80 major markets (71%), including Houston (up 140%), Dallas
34 | think realty magazine :: september - october 2025
Made with FlippingBook Online newsletter