Florida Among the States With the Highest Foreclosure Activity
Florida continues to rank among the U.S. states with the highest levels of foreclosure activity, according to the latest U.S. Foreclosure Rates by State report based on data from ATTOM and written by Megan Hunt. The report highlights ongoing financial pressure on homeowners nationwide, with Florida standing out as one of the most affected housing markets.
ATTOM’s analysis shows that Florida consistently records one of the largest numbers of properties where lenders have initiated foreclosure proceedings. The state joins other major housing markets such as Texas and California in total volume, but Florida also ranks high when foreclosure activity is measured as a share of total housing units—an important indicator of overall market stress.
Foreclosure activity includes several stages, from initial default notices and auction proceedings to completed repossessions, known as real estate owned (REO) properties. While current foreclosure levels remain below the peaks seen during the housing crisis of the late 2000s, the report notes that year-over-year increases over multiple consecutive months suggest a notable shift in market conditions.
In Florida, a combination of economic factors continues to challenge homeowners. Higher mortgage interest rates, rising insurance premiums, increased property taxes, and the state’s elevated cost of living have strained household budgets. These pressures are particularly acute for homeowners who purchased properties in recent years, when prices and borrowing costs were already elevated.
The ATTOM report also underscores that foreclosure trends vary widely across the country. While some states have seen stabilization or modest declines, others—Florida included—reflect heightened exposure to economic volatility. Rapid population growth, strong investor activity, and sensitivity to shifts in employment and interest rates all contribute to Florida’s position in the national foreclosure landscape.
For buyers and investors, increased foreclosure activity can present opportunities to acquire properties at discounted prices. However, for communities, higher foreclosure rates can also bring challenges, including vacant homes, neighborhood instability, and downward pressure on surrounding property values. Local governments and housing advocates closely monitor these trends to better anticipate community needs and policy responses.
Despite the uptick in filings, industry experts emphasize that many foreclosure cases do not reach completion. Loan modifications, repayment plans, and negotiated agreements between homeowners and lenders often resolve cases before a property is repossessed. As a result, foreclosure data should be viewed as an indicator of market stress rather than a definitive measure of housing loss.
In a dynamic and fast-growing state like Florida, foreclosure activity offers important insight into the broader health of the housing market. Reports based on ATTOM data, analyzed by Megan Hunt, provide valuable context for homeowners, real estate professionals, and policymakers seeking to understand emerging risks and evolving opportunities across the Sunshine State.
