Foreclosure auction volume spiked in the first quarter of 2025, accelerating 20% from the prior quarter and 4% year over year. The quarterly foreclosure activity marked a six-quarter high, due in large part to a surge in volume during January, when foreclosures reached a 21-month high, according to a report by Auction.com.

Loans insured by the U.S. Department of Veterans Affairs (VA) led all loan types with a 104% annual increase. The steep rise was due to the year-end expiration of a nationwide moratorium on VA loan foreclosures.

Loans backed by government-sponsored enterprises Fannie Mae and Freddie Mac had an 8% year-over-year increase in foreclosures, while Federal Housing Administration loans rose 5%. Loans insured by the U.S. Department of Agriculture were the only type to see a decrease in foreclosure activity during the first quarter, declining 12% from the previous year.

Auction.com noted that the 20% quarterly increase in overall foreclosure auction completions in the first quarter brought the total volume up to 49% of pre-pandemic levels seen during the first quarter of 2020. Scheduled foreclosure auctions were up 14% during the quarter and stood at 60% of pre-pandemic levels.

A total of 26 states saw foreclosure auction volume increase from a year ago, led by Arizona (up 151%), Utah (up 100%), New Hampshire (up 80%), Kansas (up 74%) and Texas (up 73%).

However, in a sign of increased economic volatility, Auction.com observed that auction buyers have begun easing back on the prices they’re willing to pay at auction for distressed properties. Foreclosure auction price demand fell 2% year over year in January, followed by a 4% decline in February and a 6% dip in March.