The Tri-Cities foreclosure market continued its downward trajectory in May with notable improvement over last year. According to ATTOM’s May Foreclosure Report, there were 20 new filing in the Johnson City, Kingsport Bristol, and Greeneville regions.

May’s sharp filings drop underscores a broader trend of easing foreclosure activity across the first five months of the year. For stakeholders tracking housing stability, the sustained foreclosures decline offers encouraging evidence of market resilience and improved borrower outcomes.

Local filings contrast nationwide conditions outlined in ATTOM’s report. Filings were down 1% from April and up 9% from a year ago on the national level. Locally, May’s filings were down 31% from April and down 37.5% from May last year.

ATTOM CEO Robert Barber said the national numbers, “reflected a mixed picture with fewer starts but a continued rise in completed foreclosures. This suggests that while fewer new defaults are being initiated, lenders may still be working through a backlog of existing cases. We’ll be watching closely in the months ahead to see how these trends evolve.”

The largest number of foreclosure starts were in Texas, Florida, and California.

May is the third consecutive month in this year where foreclosure totals have trailed year-ago levels. That signals fewer households are facing financial distress severe enough to result in foreclosure filings.

Every month in 2025 has posted lower foreclosure totals compared to the same month in 2024, with January showing the most dramatic reduction. That’s a drop of over 50%. While the pace of decline moderated in the spring, the cumulative effect remains significant.

The consistent foreclosure decline aligns with ongoing improvements in employment and home equity positions. ATTOM’s Q1 Equity Report found 57.5% of the region’s mortgaged properties were equity-rich. During the first quarter last year, the equity rich share was 56.9%.

Rising property values and stronger household finances have given many distressed homeowners more options, such as refinancing or selling, before foreclosure becomes inevitable.

If current trends persist, 2025 is on track to be among the lowest annual foreclosure total in recent memory, reflecting a healthier post-pandemic housing market recovery. The lowest annual foreclosure filings was 200 in 2021. Continued vigilance is still warranted, however, particularly if macroeconomic headwinds or interest rate volatility re-emerge later in the year.

Categories: REAL ESTATE