US foreclosures rise 21 months in a row; Data shows Florida had 12th most nationally (2024)

FAQs

US foreclosures rise 21 months in a row; Data shows Florida had 12th most nationally? ›

Based on ATTOM's data, SoFi reported Florida had the 12th highest number of foreclosures across the U.S., as of December 2022. SoFi said of the nearly 10 million housing units the state has, almost 2,500 had gone into foreclosure.

Florida had a 187% increase in eviction and foreclosure rates which was second in the country. California took the number one spot with a jump of 411% according to data provided by the U.S. government's Current Population Survey.

States that had the greatest number of foreclosures starts in Q1 2023 included, California (6,867 foreclosure starts); Texas (6,764 foreclosure starts); Florida (5,724 foreclosure starts); New York (4,345 foreclosure starts); and Illinois (4,006 foreclosure starts).

The number of foreclosure filings has been climbing since the federal moratorium ended in mid-2021. During the pandemic, an estimated 2 million homeowners fell behind on their mortgages.

According to the report, those states that saw the greatest number of foreclosures starts in January 2023 included: California (2,513 foreclosure starts); Texas (2,136 foreclosure starts); Florida (1,725 foreclosure starts); New York (1,375 foreclosure starts); and Illinois (1,309 foreclosure starts).

Miami topped the list with the nation's highest rate of 18.2 percent.

Osceola County, Florida – located in the Orlando-Kissimmee-Sanford metropolitan area – has one of the highest foreclosure rates of any U.S. county.

During the pandemic, an estimated 2 million homeowners fell behind on their mortgages. Major metropolitan cities with populations of more than 200,000 that had the most foreclosures starts last quarter included New York (4,674); Chicago (3,549); Los Angeles (2,210); Houston (2,120); and Philadelphia (1,985).

South Dakota led the country with the lowest foreclosure rate by far. Just one in every 4,698 housing units had a foreclosure filing. That's a rate of 0.02%. In fact, the state only had 83 filings for the whole year.

Foreclosure rate U.S. 2005-2022

The foreclosure rate reached its peak in 2010, just after the financial crisis of 2007-2009. Since then, the rate has steadily fallen.

What is the foreclosure rate in Florida? ›

Additionally, Florida's foreclosure rate is a reported one in every 3,964 homes. SoFi said the number of foreclosures in the country had “drastically increased” through 2022 and that “with a total of 248,170 initiated, U.S. foreclosures rose a staggering 169 percent from the previous year.”

During times of recession, foreclosures tend to increase.

More Americans Are Losing Their Homes as Foreclosures on US Properties Rise. (Bloomberg) -- US foreclosure filings jumped 22% in the first quarter compared to the same period a year ago, according to a report from real estate data analytics firm ATTOM.

Lenders Sell to Get their Money Back

Rather than making a profit, lenders sell foreclosed homes to recoup outstanding loan balances, unpaid property taxes, the costs of sale, and associated liens. This is why most banks or mortgage investors price foreclosed houses lower than other houses.

Where are the hottest real estate markets in Florida? The three most expensive markets in Florida to buy a house at the end of 2022 were Sarasota, Miami and Fort Lauderdale, according to the Council for Community and Economic Research's Cost of Living Index.

Major metropolitan cities with populations of more than 200,000 that had the most foreclosures starts last quarter included New York (4,674); Chicago (3,549); Los Angeles (2,210); Houston (2,120); and Philadelphia (1,985).

How long are foreclosures taking in Florida? ›

The Length of the Florida Foreclosure Process Timeline can vary. Generally, it lasts between 8 to 14 months. On the other hand, if you hire a Foreclosure Defense Attorney, it can take longer.

How Can I Stop a Foreclosure in Florida? A few potential ways to stop a foreclosure include reinstating the loan, redeeming the property before the sale, or filing for bankruptcy. Of course, if you're able to work out a loss mitigation option, like a loan modification, that will also stop a foreclosure.

Major reasons for foreclosures are:

Job loss or reduction in income. Debt, particularly credit card debt. Medical emergency or illness resulting in a lot of medical debt. Divorce, or death of a spouse or partner who contributed income.

ATTOM reports foreclosure filings were reported on 324,237 properties in the U.S. in 2022, a 115% increase compared to 2021. Of those, lenders repossessed 42,854 properties, a 67% increase compared with 2021.

Story at a glance

California currently has the largest deficit of homes at 980,000.

Foreclosure Rates in U.S. Counties, 2008

Florida and California have the most severe problem with foreclosures. The foreclosure rate in 2008 exceeded 5% in 12 counties in California and 10 in Florida (Table 9). Those counties accounted for the majority of the nation's 33 counties with a foreclosure rate of 5% or more.

1. HUD. The U.S. Department of Housing and Urban Development (HUD) is a top source for government-owned property listings. Most government foreclosure lists can be accessed via the HUD Home Store.

Those major metros with a population of 200,000 or more that had the greatest number of foreclosures starts in Q1 2023 included, New York, New York (4,674 foreclosure starts); Chicago, Illinois (3,549 foreclosure starts); Los Angeles, California (2,210 foreclosure starts); Houston, Texas (2,120 foreclosure starts); and ...

Recessions and housing market crashes may cause your house's value to decrease. However, your set mortgage rates won't lower, meaning your monthly payments will be higher than your home's worth. While many may dip into their savings to help pay the steep bills, others may need outside assistance.

What caused the foreclosure crisis? ›

Excessive credit expansion during the housing boom, mortgage debt securitization, and a financial system unprepared to cope with a widespread increase in defaults all contributed to the crisis.

Florida is a judicial foreclosure state. Therefore, a bank or HOA seeking to foreclose a home must receive approval from a judge. The case must be filed in the circuit court where the property is located. Under Florida foreclosure law, all mortgage foreclosure cases are to be conducted in a court of equity.

Selling Your Home in Foreclosure. Whether you are in pre-foreclosure or have entered the formal process, you can still sell your house prior to the auction. When you sell the property, you are able to take the proceeds and pay the lender everything you owe, including back payments and penalties.

Real estate values typically fall during a recession. Longer and deeper recessions will have the greater effect on home values. Selling today could help you from selling at a lower price in the future.

Buying a home during a recession can sometimes be a good idea — but only for people who are lucky enough to remain financially stable. If you're thinking about buying during an economic downturn, be sure to enlist the help of an experienced local real estate agent.

Inflationary pressures are evident in a wide array of goods and services, including food, clothing, travel, hospitality, and energy prices, which causes hardship for Americans by eroding their incomes. This affects their ability to make mortgage payments, which could ultimately lead to foreclosures.

Your lender does not get to keep all the proceeds from the foreclosure auction regardless of the amount. State statute determines who gets paid and when, but as the homeowner, you are last in line to get paid if there is a surplus.

Sometimes banks just sell the mortgage debt—the loan principal—and keep the mortgage servicing rights, which means they continue receiving the borrower's repayments. Often, though, they sell the entire mortgage—both the debt itself and the servicing rights.

Is home ownership in the US declining? ›

The decline in homeownership halted between: 2012 and 2016 for householders with less than a high school education (19.9% to 20.8%). 2016 and 2018 for those with a high school degree (30.8% to 31.4%).

As prices become unsustainable and interest rates rise, purchasers withdraw. Borrowers are discouraged from taking out loans when interest rates rise. On the other side, house construction will be affected as well; costs will rise, and the market supply of housing will shrink as a result.

The San Francisco Bay Area leads the nation with the largest drop in home prices. Softening home prices in some of the most expensive cities will benefit buyers.

California leads the nation for fastest home sales, with the average property snapped up in just 52 days. Compare that to Vermont, the slowest of all 50 states, where it takes nearly half a year — 161 days on average — just to lock down a buyer.

"While many parts of the U.S. are experiencing price declines, home values have held steady in the Southeast." Bankrate said Gainesville ranked No. 1 because homes in the area have appreciated 40% in one year, higher than any other location in the analysis.

The hottest housing markets include those markets in North Carolina, Colorado and Texas that were also popular during the pandemic, including Raleigh and Durham, Denver and Austin. Markets to watch that improved the most between November and December 2022 include Portland, Oregon, Richmond, Virginia, and St.

It is true that in most cases, lenders do not want to foreclose on a home. The process for them is lengthy, and they typically do not receive the full value of the loan. Unfortunately, sometimes lenders really do want to foreclose on a home.

Florida Real Estate Forecast

Florida home values have grown by 11.1% over the last twelve months and the median days to pending is 31. Based on the Zillow data provided, the Florida housing market is likely to continue its growth trend in 2023, but at a slower pace than in the previous year.

Rounding out the top 10 states with the highest foreclosure rates in 2022, were Nevada (0.34 percent); Florida (0.33 percent); Indiana (0.30 percent); Maryland (0.27 percent); and Michigan (0.26 percent).

“It certainly feels unlikely that Florida will suffer a housing crisis in 2023,” said Mark Washburn, a realtor with Naples Condo Boutique. “The number of people looking to buy in Florida seems almost endless. The devastating impact of Hurricane Ian has not throttled buyer demand here in Southwest Florida.

Can a foreclosure be reversed in Florida? ›

No, you can't get the home back after the foreclosure is over. But you have up until the later of when the court clerk files the certificate of sale or until the time specified in the foreclosure judgment, to pay off the full amount of the unpaid loan and keep the house.

A 2013 Florida statute gives the mortgage lender one year after the foreclosure sale to file a motion for deficiency.

Bank failure fears spreading to Florida's real estate market

"It's definitely cooled down a bit. Gone are the days when we would put properties on the market and we would expect a bidding war within a few days," Sandals Realty Group broker Amanda Glass told FOX Business' Ashley Webster. "It's not happening anymore."

Moody's Sees More Price Drops

But values have held up better in several Florida markets and some other Southeast states. “On a national basis, we expect home prices to decline about 4% both in 2023 and in 2024,” the analysts said.

As of Q4 2022, the number of closed sales for single-family homes decreased by 33.1% from the previous year and the number of new listings was down 17.1% from the year before, according to Florida Realtors. That doesn't mean it's a bad time to buy, though.

South Dakota led the country with the lowest foreclosure rate by far. Just one in every 4,698 housing units had a foreclosure filing. That's a rate of 0.02%. In fact, the state only had 83 filings for the whole year.

During the pandemic, an estimated 2 million homeowners fell behind on their mortgages. Major metropolitan cities with populations of more than 200,000 that had the most foreclosures starts last quarter included New York (4,674); Chicago (3,549); Los Angeles (2,210); Houston (2,120); and Philadelphia (1,985).

Fannie Mae, Mortgage Bankers Association and National Association of Realtors expect mortgage rates to drop through the first quarter of 2024, by half a percentage point to about nine-tenths of a percentage point. Figures are the predicted quarterly average rates for the 30-year fixed-rate mortgage.

'Slowing' 2023 market still means higher housing prices for most of SW Florida but not all. Inventory is surging, with lots of choices on where to live. Homes are taking longer to sell. Pending deals are falling through, and sales are down.

Is Tampa a buyers or sellers market? ›

Tampa is a Sellers Housing Market, which means prices tend to be higher and homes sell faster.