According to the latest December 2025 foreclosure report from ATTOM, New Jersey recorded the highest foreclosure rate in the United States, outpacing every other state as foreclosure activity accelerated nationwide.
In December 2025:
- 44,990 U.S. properties had a foreclosure filing
- Activity rose 26 percent month over month
- Filings were 57 percent higher than December 2024
- Nationally, 1 in every 3,163 housing units had a foreclosure filing
New Jersey stood out sharply, with 1 in every 1,734 housing units impacted, nearly double the national rate.
This confirms what many New Jersey homeowners are already feeling. Rising carrying costs, higher interest rates than expected, and persistent affordability pressure are starting to surface in foreclosure statistics.
Why New Jersey Is Leading the Nation
New Jersey’s top ranking is not driven by a sudden collapse in home values. In fact, most affected homeowners still have equity. The pressure is coming from monthly affordability, not asset prices.
Contributing factors include:
- Property taxes that continue to rise faster than wages
- Mortgage rates resetting higher than borrowers planned for
- Insurance, utilities, and maintenance costs climbing simultaneously
- Aging homeowners and inherited properties with unresolved financial obligations
ATTOM notes that while foreclosure activity is rising, it remains well below pre-pandemic and housing crisis levels. This is a normalization phase, not a crash. That distinction matters, but it does not make the situation any easier for households already under strain.
How New Jersey Compares to Other High-Risk States
The states with the highest foreclosure rates in December 2025 were:
- New Jersey
- South Carolina
- Maryland
- Delaware
- Florida
Several neighboring states ranked much lower:
- New York: 1 in 3,423
- Pennsylvania: 1 in 3,335
- Connecticut: 1 in 4,118
This reinforces a familiar pattern. States with higher fixed costs experience stress sooner when conditions tighten, even when home values remain strong.
A Local Snapshot: What This Looks Like in Bergen County
While ATTOM data captures statewide filings, local sheriff sale dockets show how that pressure translates on the ground.
In Bergen County, the current sheriff sale calendar already reflects a busy pipeline, with more than 100 scheduled sheriff sales spread across dates from late January through April 2026. The towns appearing most frequently in this snapshot include Teaneck, Bergenfield, Fort Lee, Elmwood Park, Englewood, Hackensack, Paramus, Mahwah, and Fair Lawn.
Not every scheduled sale will result in foreclosure. Many cases are resolved, adjourned, or sold before auction. The significance is that the pipeline is full, which aligns directly with New Jersey’s #1 ranking in the ATTOM report.
This Is Not 2008, But It Is a Turning Point
ATTOM’s key insight is important to keep in perspective. Today’s foreclosure activity reflects market recalibration, not reckless lending. Equity positions remain strong, and widespread distress is limited.
However, foreclosure is no longer rare. It is becoming visible again, especially in high-cost states like New Jersey.
For homeowners who wait too long, the legal timeline often removes options. For those who act early, there are usually still multiple paths forward.
What New Jersey Homeowners Should Take Away
If you are:
- behind on mortgage payments,
- dealing with an inherited or probate property,
- managing a home that needs major repairs, or
- feeling squeezed by rising monthly costs,
the ATTOM data sends a clear message. Do not ignore the early warning signs.
In many cases, selling before a sheriff sale preserves equity and control, instead of letting the process decide for you.
How New Jersey House Partners Helps
New Jersey House Partners works with homeowners navigating:
- preforeclosure,
- inherited homes,
- distressed or as-is properties,
- tired landlord situations.
We focus on explaining all viable options, including traditional listings and as-is solutions, so homeowners can choose what makes the most financial sense for their situation.
New Jersey may be ranked #1 in foreclosure rate, but that does not mean homeowners are out of options. Acting early is the difference.
