California Foreclosure Rates by City 2025: Where Foreclosures Are Rising
Key Takeaway
Foreclosure rates in California are rising in 2025, with some cities and counties seeing higher activity than others. Understanding where foreclosures are concentrated can help homeowners recognize warning signs and take action early.
California Foreclosure Overview 2025
After years of historically low foreclosure activity during the pandemic, California is seeing a gradual return to more typical foreclosure levels in 2025. While overall rates remain below pre-pandemic peaks, certain regions of the state are experiencing notable increases in foreclosure filings.
Several factors are driving this trend. The extended period of low interest rates during 2020-2021 led many homeowners to refinance or purchase homes with adjustable-rate mortgages. As those rates reset higher, some borrowers are finding their monthly payments difficult to manage. Additionally, the expiration of pandemic-era forbearance programs means homeowners who were protected during COVID are now facing the consequences of deferred payments.
The impact of rising interest rates extends beyond mortgage payments. Higher rates have cooled the housing market in some areas, making it harder for distressed homeowners to sell quickly and avoid foreclosure. In markets where home values have plateaued or declined slightly, homeowners have less equity cushion to work with.
Important Context
While foreclosures are increasing, California's overall foreclosure rate remains moderate compared to historical norms. The state's strong home equity positions mean most distressed homeowners still have options to avoid losing their homes to foreclosure.
Top California Counties by Foreclosure Activity
Foreclosure activity varies significantly across California's diverse regions. Here's a look at the major counties and their relative foreclosure activity levels:
Los Angeles County
High VolumeAs California's most populous county, Los Angeles sees the highest total number of foreclosure filings simply due to its size. However, its foreclosure rate per household remains near the state average. Areas within LA County show significant variation, with some neighborhoods experiencing elevated activity while others remain stable.
Riverside County
Above Average RateRiverside County consistently shows foreclosure rates above the California average. The Inland Empire's rapid growth during the housing boom left some homeowners vulnerable, and affordability challenges continue to strain household budgets. Cities throughout the county are seeing increased foreclosure filings in 2025.
San Bernardino County
Above Average RateLike neighboring Riverside, San Bernardino County faces elevated foreclosure activity. The region's mix of suburban communities and more rural areas creates varied conditions, but overall the county sees higher-than-average distress. Economic transitions and job market shifts have impacted some communities more than others.
Orange County
Moderate ActivityOrange County's foreclosure rate sits near or slightly below the state average, though its high home values mean significant dollar amounts are at stake. The county's diverse economy provides some stability, but rising costs of living have put pressure on homeowners, particularly in mid-range price points.
Sacramento County
Moderate to ElevatedSacramento County shows moderate foreclosure activity with some areas trending higher. The region saw significant population growth during the pandemic as remote workers left the Bay Area, and some of those purchases made at peak prices are now under pressure as interest rates rise.
San Diego County
Near AverageSan Diego County maintains foreclosure rates close to the state average. The county's military presence, tourism industry, and diverse economy provide relative stability. However, high home prices mean that homeowners who do face foreclosure often have significant equity at risk.
Alameda County
Below Average RateAlameda County and much of the Bay Area maintain lower foreclosure rates compared to inland regions. High incomes and strong home equity positions give many homeowners alternatives to foreclosure. However, tech industry layoffs have created pockets of distress in some communities.
Why Foreclosures Are Increasing in Some Areas
Several interconnected factors are driving increased foreclosure activity in certain California cities and counties:
Interest Rate Adjustments
Homeowners with adjustable-rate mortgages (ARMs) are seeing their rates reset significantly higher. A mortgage that started at 3% may now adjust to 6% or more, potentially adding hundreds of dollars to monthly payments.
Forbearance Expirations
Pandemic-era forbearance programs allowed millions of homeowners to pause payments. As these programs end and deferred amounts come due, some homeowners are struggling to catch up or afford modified payment plans.
Economic Pressures
Inflation has increased the cost of nearly everything from groceries to insurance. For homeowners already stretching to make mortgage payments, these additional costs can push budgets past the breaking point.
Affordability Challenges
In areas where home prices grew faster than incomes during the pandemic boom, some buyers took on mortgages at the edge of their affordability. Any disruption to income or increase in expenses can trigger financial distress.
Cities to Watch in 2025
While foreclosure activity can shift throughout the year, certain California cities are showing trends that warrant attention:
Cities Seeing Elevated Foreclosure Activity
- Inland Empire cities - Communities in Riverside and San Bernardino counties, including Moreno Valley, Victorville, Fontana, and Hemet, are experiencing above-average foreclosure activity
- Central Valley cities - Stockton, Modesto, Fresno, and Bakersfield are seeing increased filings as agricultural and industrial economies face challenges
- Antelope Valley - Palmdale and Lancaster in northern Los Angeles County are showing elevated distress levels
- Sacramento metro suburbs - Some outer suburban communities that saw rapid growth during the pandemic are now facing higher foreclosure rates
- Select Bay Area communities - While the Bay Area overall has lower rates, some communities impacted by tech layoffs are seeing localized increases
Regional Pattern
A clear geographic pattern emerges: inland and Central Valley regions typically show higher foreclosure rates than coastal areas. This correlates with income levels, job market diversity, and home equity positions. Coastal homeowners generally have more equity and more options to avoid foreclosure.
What Rising Foreclosure Rates Mean for Homeowners
If you're facing financial difficulties and live in an area with rising foreclosure rates, it's important to understand that you're not alone. Thousands of California homeowners are navigating similar challenges, and there are resources and options available.
Rising foreclosure rates in your area can actually work in your favor in some ways. Lenders and servicers are increasingly motivated to work with homeowners on loss mitigation options rather than go through the costly foreclosure process. This means you may have more leverage to negotiate a loan modification, forbearance extension, or other workout arrangement.
The key is taking action early. Homeowners who reach out to their servicers at the first sign of trouble have far more options than those who wait until a foreclosure sale is imminent. California law also provides significant protections, including required contact attempts by servicers and mandatory exploration of alternatives before foreclosure can proceed.
Your Options Include:
- Loan Modification - Changing the terms of your loan to make payments more affordable
- Forbearance - Temporarily reducing or pausing payments while you recover financially
- Repayment Plan - Spreading missed payments over time while maintaining current payments
- Selling Your Home - Using your equity to pay off the mortgage and walk away with cash
- Short Sale - Selling for less than owed with lender approval (if equity is insufficient)
- Deed in Lieu - Transferring the property to the lender to avoid foreclosure on your record
How to Check Your City's Foreclosure Activity
Staying informed about foreclosure trends in your area can help you understand the broader market and your options. Here are resources for monitoring local foreclosure activity:
Resources for Tracking Foreclosure Data
- County Recorder's Office - Public records of Notice of Default and Notice of Sale filings
- PropertyRadar - California-focused property data including foreclosure tracking
- ATTOM Data Solutions - National and local foreclosure statistics and reports
- Local Housing Counseling Agencies - HUD-approved counselors often have local market insights
- California Housing Finance Agency (CalHFA) - State-level data and homeowner assistance programs
Get Help Before You Become a Statistic
Don't wait until your situation becomes critical. Our licensed California professionals have helped hundreds of homeowners explore their options and protect their equity, even in challenging markets.