Top home foreclosure states

[GON]

Interesting chart. Would like to know the "reason" Florida's numbers are what they are.

I track homes for sales in many states. It is very rare to see a foreclosed home on the market. The foreclosed homes I do come across are usually trashed beyond comprehension. This might imply many homes at risk of foreclosure are purchased by the lender or other party, rather then complete a foreclosure. This might also imply most homes in foreclosure are not "upside down".

This is a foreclosed home I viewed earlier today:
https://www.realtor.com/realestateandhomes-detail/809-S-Roselawn-Ave_Artesia_NM_88210_M12008-43288

 

[Dave Hess]

The foreclosure situation is much worse than some idiot here will immediately post a chart / graph to contradict what Im saying.

After Covid the government did everything to prevent foreclosures.
Some homeowners knew they can take advantage of certain programs to kept them in their homes without paying their mortgage.

We also had an election and kicking deadbeats out of their home was a big No No.

 

[NibbanaBanana]

We have one down the road about a mile. Freeloading deadbeats have been in there trashing the place for over a decade. Dead tree on the house, junk cars, trash all over. I pity the neighbors. Property is owned by the USDA. Our tax dollars at work.

 

[SC Maintenance]

Would like to know the "reason" Florida's numbers are what they are.

If I may summarize a bit of what I have heard:

Prices are falling especially in certain areas like Tampa. If prices keep rising no foreclosures - if you can't pay you just sell and pay the note. So you need falling prices as a basis.

Much of these were leveraged investment properties - so now falling equity.

Add the rapidly rising cost of insurance to both those above as a double whammy.

No longer rising in value - can't pay the note - let the bank have it back.

South Carolina is not much different FWIW. I am actually surprised by Iowa and Ohio?

 

[GON]

If I may summarize a bit of what I have heard:

Prices are falling especially in certain areas like Tampa. If prices keep rising no foreclosures - if you can't pay you just sell and pay the note. So you need falling prices as a basis.

Much of these were leveraged investment properties - so now falling equity.

Add the rapidly rising cost of insurance to both those above as a double whammy.

No longer rising in value - can't pay the note - let the bank have it back.

South Carolina is not much different FWIW. I am actually surprised by Iowa and Ohio?

Lat night I watched a video by a Florida Real Estate broker.

He stated that many Floridians are on very fixed incomes, much tighter budgets than one might think. With the rise in Florida's auto insurance and home owners insurance, some Florida homeowners can no longer afford their home with the increase in monthly insurance cost. The broker further added that many of these homes need roofs, which is required to switch homeowners insurance policies, and these homeowners simply don't have $30k USD +/- for a replacement roof. The broker reports these homeowners are selling, and maybe if they can't sell, are walking away?

Concur, no reason to understand the foreclosure rate in Iowa, but could be what @NibbanaBanana pointed out. USDA loans (dept of agriculture) to people who are not a match for home ownership, let the home get trashed, don't make payments, and the home is no longer desirable for a short sale purchase at any price point- so foreclosure is the only COA.

 

[PandaBear]

People being poor typically would try to sell instead of being foreclosed if the market is healthy and they are not "investors". Much better prices that way and you lose less.

Foreclosed tend to happen if the investors give up and they don't even bother working with the bank to short sell the home, and the bank has to repo after a few months (3? 6?), then have to get rid of it real fast.

The surprise to me in this chart is South Carolina. I am expecting Florida to be #1 as they are super speculative and aren't heavy into any solid industry like tech or banking. What is the story behind SC?

 

[SC Maintenance]

What is the story behind SC?

Same as Florida on a smaller scale. People piled in from up North, Builders over-built, and everyone's homeowners insurance went up 30%.

I am looking at places in the city, so I am cheering it down.

 

[Thebigm]

The foreclosure situation is much worse than some idiot here will immediately post a chart / graph to contradict what Im saying.

After Covid the government did everything to prevent foreclosures.
Some homeowners knew they can take advantage of certain programs to kept them in their homes without paying their mortgage.

We also had an election and kicking deadbeats out of their home was a big No No.

I have known a couple of people that have moved from New York to Florida stay there for a couple years and came right back. They say insurance rates of sky high and the weather was just too much

 

[alarmguy]

...

The surprise to me in this chart is South Carolina. I am expecting Florida to be #1 as they are super speculative and aren't heavy into any solid industry like tech or banking. What is the story behind SC?

One month does not tell a story. Splitting hairs between FL and SC for OCT
Cherry picking data are on one months worth of filings, kind of like saying EV sales were through the roof in Sept.

For example the foreclosure rate in Florida for the month of Sept was 25% higher than South Carolina. SC came in 5th for the month.
https://www.noradarealestate.com/blog/5-states-facing-the-highest-foreclosure-rates-in-2025/

Same for the Month of August, SC foreclosure filings were down 25% and Florida up 15%

Complete chart in the link above. Also keep in mind as far as Florida, it is not as bad as the media suggests (of course) HU = Housing Units. Some of this MAY BE the abandonment/walking away from old condo's with skyrocketing HOA fees where reserves need to be increased do to the old buildings. Im only saying this because I know someone right now closing on a pretty upscale home in Sarasota/ I was shocked at the low insurance cost. Less than $2000

 

[Dave Hess]

To keep the ongoing Puppet Show propped up you can NOT lose the housing market and have millions of foreclosures.

Lots of defaults that many people in very high Gov positions are ignoring.

 

[Rmay635703]

If I may summarize a bit of what I have heard:

Prices are falling especially in certain areas

South Carolina is not much different FWIW. I am actually surprised by Iowa and Ohio?

Iowa should be no surprise, everything that seems completely divorced from farming in every way shape and form is fully inter-related to the local farm economy.

I’m extraordinarily surprised that the entirety of the Midwest isn’t in complete freefall but there is a not insignificant amount of .gov interference choosing unexpected winners and losers.

Many farms are in distress outside those that are bankrupt.

Farms may make little profit but the cash flow is unimaginably immense.

So A single farm may look like it only employs 3 people but when they are squeezed tens of thousands end up affected downstream much like a massive corporation going under.