Foreclosures Rise for 8th Straight Month—These States Have the Worst Rates

Foreclosures across the U.S. continue to rise—and the increases are in the double digits.

"Foreclosure activity continued its steady upward trend in October, the eighth straight month of year-over-year increases. Starts rose nearly 20%, while completed foreclosures were up 32% from last year," says Rob Barber, CEO at ATTOM, a real estate analytics firm.

But there is some good news—while these foreclosure increases sound dire, the rates are "well below historic highs," says Barber.

"The current trend appears to reflect a gradual normalization in foreclosure volumes as market conditions adjust and some homeowners continue to navigate higher housing and borrowing costs."

Nationwide, 1 in every 3,871 housing units had a foreclosure filing in October 2025, according to the firm's October U.S. Foreclosure Activity report.

Florida remains No. 1 in foreclosures

It likely won't surprise many that the Sunshine State takes the top spot for foreclosures.

One in every 1,829 housing units had a foreclosure filing in October.

In October, Florida also had the greatest number of foreclosure starts, totaling 4,136. A foreclosure start is when a buyer falls at least 120 days behind on payment, and the lender starts the legal process of foreclosure.

Lenders started the foreclosure process on 25,129 properties total in October, up 6% from last month and a staggering 20% from a year ago.

In even more bad news for the Southern state, among metro areas with populations of 1 million or more, Tampa, FL, posted the highest foreclosure rate in October, at 1 in every 1,373 housing units.

Right behind Tampa were two other Florida metros: Jacksonville (1 in every 1,576) and Orlando (1 in every 1,703).

What is happening in Florida?

Florida remains the retirement capital of the nation, and many owners live on fixed incomes—such that quickly advancing housing costs create a higher risk of foreclosure.

The hurricane-prone state has been hit with a double whammy of soaring HOA costs in the wake of the Surfside condo collapse, as well as skyrocketing insurance costs due to the increasing frequency and force of extreme weather events.

"A huge percentage of Florida's residents are retired on fixed incomes, and such [HOA] increases are completely unaffordable," real estate investor Jameson Tyler Drew tells Realtor.com®. "This has led to a fire sale of condos as elderly residents look for places to live, all while losing their equity."

"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.

"Additionally, many homeowners who were protected by [COVID-19] pandemic-era forbearance or relief programs are now facing resumed payments they can’t afford in light of rising HOA and insurance costs."

While Florida's Homestead Law may protect a house from foreclosure, there are rules involved, including that the asset has to be a primary home, and not an investment property.

"Property taxes and insurance are going up," Trish Carter, who deals in foreclosures in the Tampa area, tells Realtor.com. "It's a challenge for everybody."

However, she says, "I don't think it will be a repeat of 2008."

At the time, an astounding 1 in every 54 households received a foreclosure notice. (Even back then, Florida was tops in foreclosures.)

Rounding out the top five states with the highest foreclosure rates in October are South Carolina, Illinois, Delaware, and Nevada.

Illinois also came in fourth (behind Florida, Texas, and California) for the greatest number of foreclosure starts with 4,136.

Delaware is an unexpected state to be so high in the rankings.

"Recent federal employment disruptions, for example, may be affecting parts of Delaware’s workforce. And because Delaware is a relatively small market, foreclosure rates can appear more volatile, with modest changes showing up as larger swings in the data," explains Jones.

"These factors suggest that homeowners in Delaware may have less cushion to weather financial shocks, contributing to higher foreclosure activity."

Carol Quattrocciochi with Exp Realty, who specializes in foreclosed properties in the state, tells Realtor.com: "The feedback I'm getting from owners is due to a few factors. The cost of everything from groceries to utilities going up, along with taxes increasing, is a big issue. A lot of people are living check to check, and when something big breaks in the house that they pay to repair, then there's no money left for [motgage] payments.

"Honestly once someone get a few months behind it is hard to catch up."

Why buy a foreclosure

Of course, higher foreclosures can be good news for buyers, as foreclosures can mean snagging a deal. Just be sure to do your due diligence and work with an agent who understands the process. Additionally, foreclosures are often sold as is (no inspections or repairs) and cash only.

Some properties may not be a steal and offer only a small shave off the market price. However, those are the properties you may prefer, as they are likely to require much less cash investment. It all depends on your comfort level with risk.

Be sure to factor in any renovations the property will need and look into whether you'll be on the hook for liens or back taxes. If it seems "too good to be true," it just might be.

Florida

Foreclosure rate: 1 in every 1,829 housing units

Median price: $425,000

South Carolina

Foreclosure rate: 1 in every 1,982 housing units

Median price: $365,000

Illinois

Foreclosure rate: 1 in every 2,570 housing units

Median price: $308,974

Delaware

Foreclosure rate: 1 in every 2,710 housing units

Median price: $484,995

Nevada

Foreclosure rate: 1 in every 2,747 housing units

Median price: $492,500