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What's Driving the Rise in Florida Foreclosures

Hi there, I’m Cody Huelsman, founder of mygoodagent, dog dad and musician—and today I want to talk about what’s behind the uptick in foreclosures here in Florida.

There’s no single cause. Instead, a mix of financial pressures is hitting homeowners. Pandemic-era forbearance and moratoriums ended in 2024, meaning properties that were previously protected began moving through foreclosure stages again (floridarealtors.org). At the same time, many people who bought at peak prices have seen dramatic increases in homeowners insurance, property taxes, and, for those with adjustable-rate mortgages or temporary rate buydowns, sharply higher monthly payments (realtor.com).

Florida in Particular

Florida has led the nation in foreclosure filings multiple times in 2026. Between January and June, about 0.27% of Florida’s housing units had a foreclosure filing—the worst statewide rate in the country (realtor.com). In May alone, one in every 2,110 housing units in Florida had a filing, compared to 1 in every 3,562 nationwide (realtor.com). And according to tracking of foreclosure-process events (early filing steps), Florida jumped nearly 88% year-over‑year — from 82 to 154 events per 10,000 tracked homes (ratezip.com).

In October 2026, foreclosure and tax-deed auctions are underway in Florida—with 2,086 foreclosure auctions scheduled and an average estimated market value of about $256,000 per property (foreclosureauctiondata.com).

What This Means for Buyers and Sellers

Buyers

Opportunities for discounts: Many foreclosed or REO (real estate owned) homes are priced about 27% below estimated market value (floridarealtors.org). For buyers looking for savings, that can translate into real and meaningful bargains.
Patience and prep are key: These homes often sell “as-is” and spend longer on the market (about 11 days longer on average) because their listings often include fewer photos and fewer details (floridarealtors.org). That means inspections, planning for repairs, and working closely with a lender are essential.

Sellers

Increased competition: If you're listing in a market where foreclosures are rising, know that buyers may compare your home to these discounted listings. You might need to be ready to offer incentives or be flexible on price or terms (axios.com).
Avoidance possible with early action: If you're a homeowner feeling stretched, it’s often better to reach out early—contact your lender to explore options like loan modifications or payment restructuring, rather than waiting for filings to start (baynews9.com).

Key Numbers for Florida (as of October 2026)

2026 H1 foreclosure filings up 21% vs. 2025—Florida led the nation with a rate of 0.27% of housing units (realtor.com).
In May 2026, ratio was 1 filing per 2,110 units (realtor.com).
Foreclosure-process events surged 87.7% year-over-year in Q1–Q2 (ratezip.com).
October 2026 auction activity so far: 2,086 foreclosure auctions, average estimated value roughly $256,000 (foreclosureauctiondata.com).
Foreclosed/REO listings offer about 27% discount compared to market value and attract more buyer interest, even if they take longer to sell (floridarealtors.org).
Average 30‑year mortgage rate across the U.S. averaged 7.28% as of October 1, 2026, up from around 6.3% a year ago (axios.com).

What You Can Do

Buyers: If you're open to properties needing some TLC, there are opportunities here—but make sure you have a lender onboard early and budget in repairs.
Sellers: Price strategically, highlight your home’s move-in readiness, and consider offering incentives rather than matching the discount on REOs.
Homeowners: Feeling behind? Reach out to your loan servicer sooner rather than later—it's often the difference between staying or facing foreclosure (baynews9.com).
Everyone: Talk to a trusted lender about current rates and personalized options. I can help you figure out next steps.

I know figures and forecasts can feel overwhelming, but understanding what’s happening—and why—gives us the power to make smart, confident choices. If you'd like to dig deeper or explore what this means in your area, I’m always here to help. Just reach out anytime.