October 14, 2025 | Mark Luis Foster
Sad news that foreclosures are well above norms when compared year over year, with the state of Florida occupying five of the top ten markets hardest hit.
From Realtor.com:
There were a total of 101,513 U.S. properties with foreclosure filings during the third quarter of 2025, up less than 1% from the previous quarter, but up an astounding 17% from a year ago.
Foreclosures happen when homeowners fail to make their required monthly payments. A lender will typically work with the homeowner to try and salvage what they can, but at some point, if a homeowner cannot pay for what they owe, a notice of default will be issued. This starts the formal process. (We recently blogged about a legislative change in HOA foreclosures that is impacting HOAs in Colorado.)
If a borrower can’t come up with the funds to pay what they owe, a lender will issue a notice of default. This form will be sent to the mortgagee via a certified letter, and it typically gives a homeowner 90 days to pay off the most recent bill. This is the beginning of the formal process.
With Florida markets occupying five of the top ten most affected metros in the nation, the insurance problem comes to mind:
“Foreclosure rates in Florida may be relatively high due to some combination of surging insurance premiums, climbing HOA fees, and falling buyer demand,” adds Hannah Jones, senior economic research analyst at Realtor.com.
The top 10 most affected markets experiencing foreclosures (and these are not limited to HOAs, by the way):
- Lakeland– Winter Haven, FL
- Columbia, SC
- Cape Coral – Fort Myers, FL
- Cleveland- Elyria OH
- Ocala, FL
- Jacksonville, FL
- Bakersfield, CA
- Palm Bay – Melbourne – Titusville, FL
- Las Vegas – Henderson – Paradise, NV
- Jacksonville, NC
Read the article from Realtor.com HERE.
