CHESTER COUNTY, PA — Foreclosure activity increased across the United States in 2025 as the housing market continued its post-pandemic normalization, but conditions in Chester County remained comparatively stable, supported by strong home prices, fast sales, and homeowner equity.
According to the ATTOM Year-End 2025 U.S. Foreclosure Market Report, 367,460 U.S. properties had at least one foreclosure filing during the year, a 14 percent increase from 2024. Despite the rise, filings were still down 25 percent from 2019 levels and 87 percent below the peak reached during the housing crisis in 2010, underscoring a recalibration rather than widespread distress. The full report is available at https://www.attomdata.com/solutions/market-trends-data/foreclosure-activity-report/.
Pennsylvania stood out nationally for the volume of bank repossessions, with 2,975 properties taken back by lenders in 2025, placing the state among the top five for real estate owned properties. In December, Pennsylvania posted a foreclosure rate of one in every 3,335 housing units, with elevated activity concentrated in counties such as Philadelphia, Delaware, Berks, and Lancaster.
Chester County-specific year-end foreclosure totals have not yet been released publicly, but broader market indicators suggest the county avoided the sharper pressures seen elsewhere in the state. The local housing market remained highly competitive through the end of 2025, with prices continuing to climb and homes selling rapidly. In November, the county’s median home sale price rose 7.3 percent year over year to approximately $561,232, and properties spent a median of just 10 days on the market.
That strength has helped insulate many homeowners from foreclosure risk. High levels of equity allow financially stressed owners to sell rather than default, a dynamic that has limited forced sales even as filings increased statewide.
Still, Chester County has not been immune to underlying pressures. In March 2025, the county implemented an opt-in foreclosure conciliation program for owner-occupied residential mortgages, aimed at helping borrowers work with lenders before cases advance through the courts. The move came as pandemic-era relief programs fully expired and households faced renewed payment obligations alongside rising property taxes and sharply higher homeowners insurance premiums.
Statewide and nationally, those pressures were compounded by broader economic trends. Household debt reached record levels in 2025, while delinquencies on credit cards and auto loans climbed, signaling thinning financial buffers. Elevated interest rates throughout much of the year also limited refinancing options for borrowers seeking relief.
ATTOM reported that lenders initiated foreclosure proceedings on 289,441 U.S. properties in 2025, up 14 percent from the prior year, while bank repossessions increased 27 percent to 46,439. Even so, foreclosure filings represented just 0.26 percent of all U.S. housing units, far below pre-pandemic norms.
“Foreclosure activity increased in 2025, reflecting a continued normalization of the housing market following several years of historically low levels,” said Rob Barber, chief executive officer of ATTOM. He said strong equity positions and more disciplined lending standards continue to limit systemic risk.
For Chester County, that combination of elevated home values, tight inventory, and fast turnover remains a critical buffer. While rising foreclosure activity across Pennsylvania bears watching, current data point to a market where localized strength is offsetting broader national and state-level pressures, keeping widespread distress at bay for now.
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