Foreclosure auctions have long been one of the most visible and competitive stages of the foreclosure process. Once a property reaches the Notice of Sale phase, it is scheduled for auction, attracting attention from seasoned investors seeking speed and volume. However, the recent rise in foreclosure auction activity—up nearly 20% year-over-year—presents a compelling opportunity for real estate investors, but preparation is essential.

The Current State of Foreclosure Auctions

According to the latest data, the number of foreclosure sale notices in August 2025 increased by 19% compared to the same month last year. This upward trend points to a growing supply of distressed properties entering the foreclosure pipeline, signaling potential opportunities for investors.

For August 2025, there were a total of 16,147 foreclosure notices, a slight decrease from July, but a substantial year-over-year rise. This suggests that the flow of distressed properties is accelerating, offering more chances for investors to capitalize on auctions.

State-by-State Breakdown:

• North Carolina: A significant 52.83% increase in foreclosure notices year-over-year, highlighting a sharp rise in auction activity.
• California: Over 1,200 notices, marking an 11.24% increase, indicating continued distress in one of the largest housing markets.
• Texas: Leading the nation with 2,982 notices, despite a month-over-month decline.
• Ohio: A 12.92% increase year-over-year, reflecting steady growth in auction activity in the Midwest.
• Florida: While slightly down from last year, Florida still holds a significant portion of national foreclosure notices.

Why Investors Should Pay Attention

The Notice of Sale phase is pivotal for real estate investors, offering key advantages:

1. Clarity and Timing: Unlike the uncertainty of pre-foreclosure stages, a Notice of Sale gives a specific auction date, allowing investors to prepare thoroughly.

2. Due Diligence: Investors can research property history, lien status, and comparable sales in the area before the auction.

3. Speed of Acquisition: Auctions provide a faster route to ownership compared to long pre-foreclosure negotiations, allowing for quicker property turnovers.

For experienced investors who can act quickly, foreclosure auctions offer the potential for acquiring properties below market value, but it requires meticulous preparation.

Opportunities at Foreclosure Auctions

While auctions are competitive, they present a range of opportunities:

• Auction Purchases: Buying properties at auction can lead to significant discounts, especially when there’s less competition or the property has unique challenges.
• Speed: Auctions shorten the timeline between finding a distressed property and taking ownership, which can be beneficial for high-volume investors.
• IRA Integration: Investors using self-directed IRAs can leverage non-recourse loans at auctions, allowing them to take advantage of tax-advantaged opportunities.

However, it’s crucial to note that properties at auction are sold “as-is,” often with no opportunity for inspection beforehand. Thorough research and a solid understanding of the risks are essential.

Examining Auction Activity by State

Looking at the breakdown of foreclosure notices in August 2025, we see distinct patterns across the country:

• North Carolina: The state has seen a sharp rise in foreclosure activity, with a 52.83% increase year-over-year. Investors may want to explore both urban markets like Charlotte and Raleigh, as well as smaller regional areas.
• California: Despite its high home prices, California continues to see substantial foreclosure activity. Investors should target specific ZIP codes where auction volume is increasing.
• Texas: With the largest number of foreclosure filings, Texas remains a hotbed of auction activity. However, its non-judicial foreclosure process makes it unique, and investors can capitalize on the volume here if they understand the state’s process.

What Does This Mean for Investors?

The increase in foreclosure notices indicates two key trends:

1. More Inventory: A larger supply of distressed properties is heading to auction, providing more opportunities for savvy investors.

2. Better Preparedness: Investors who prepare in advance, rather than waiting for auction day, will have a competitive edge.

For investors familiar with the auction process, these changes create an environment ripe for quick acquisitions. For newcomers, the growing number of foreclosure filings is a signal to build relationships with local auction houses, courthouses, and title professionals to understand the process better.

The Importance of Data in Auction Success

Success in foreclosure auctions doesn’t just happen on the auction day—it’s about preparation. Monitoring Notice of Sale filings by county or ZIP code gives investors valuable insights, including:

• Auction Volume Trends: Identify where auctions are heating up and where inventory is growing.
• Comparing Markets: By analyzing trends across states and local markets, investors can better understand regional differences.
• Aligning Capital: Investors can time their capital and financing strategies to match upcoming auctions, ensuring they are ready when the right opportunity arises.

For example, spotting a county where auction filings have doubled in the past quarter gives investors a clear lead on where to focus, allowing for early preparation and targeted bidding.

Take Control of Your Investment Strategy

The rise in foreclosure auction activity presents a significant opportunity, but only for those who actively track the data and prepare in advance. By leveraging Foreclosure Reports—which provide monthly updates on Foreclosure Starts, Notices of Sale, and REO Properties—investors can stay ahead of the market and be prepared for these opportunities before they become widely known.

Staying informed and tracking trends closely will allow you to capitalize on a growing number of distressed assets as they move through the foreclosure process and reach the auction block. The more prepared you are, the more competitive advantage you’ll have.