Foreclosures are rising sharply across the United States, signaling potential cracks in the nation’s housing market after years of relative calm. New data from property analytics firm ATTOM shows that 101,513 properties faced foreclosure filings in the third quarter of 2025—a 17 percent increase from the same period last year.
In September alone, 35,602 properties received foreclosure notices, a 20 percent year-over-year jump. Foreclosure occurs when lenders seize homes from borrowers who fail to meet mortgage obligations, a trend that often foreshadows deeper financial strain among households, wrote The Daily Mail.
The problem is especially pronounced in Florida, where climbing homeowners association fees and soaring insurance premiums—exacerbated by Hurricane Milton’s devastation in 2024—are squeezing fixed-income residents. “In 2025, we’ve seen a consistent pattern of foreclosure activity trending higher, with both starts and completions posting year-over-year increases for consecutive quarters,” said Rob Barber, CEO of ATTOM. “While these figures remain within a historically reasonable range, the persistence of this trend could be an early indicator of emerging borrower strain in some areas.”
Nationally, there was one foreclosure filing for every 1,402 housing units last quarter, but Florida’s rate was far higher—one per 814 homes. Investor Jameson Tyler Drew said the surge is hitting older residents particularly hard. “A huge percentage of Florida’s residents are retired on fixed incomes, and such [HOA] increases are completely unaffordable,” he said. “This has led to a fire sale of condos as elderly residents look for places to live, all while losing their equity.”
Hannah Jones, senior economic research analyst at Realtor.com, attributed the state’s high rates to multiple pressures. “Foreclosure rates in Florida may be relatively high due to some combination of surging insurance premiums, climbing HOA fees, and falling buyer demand,” she explained. “Additionally, many homeowners who were protected by pandemic-era forbearance or relief programs are now facing resumed payments they can’t afford in light of rising HOA and insurance costs.”
Taken together, these factors point to a housing market under mounting pressure—one that remains stable on paper but increasingly fragile beneath the surface. While Attom CEO Rob Barber said the numbers remain “within a historically reasonable range,” he cautioned that the trend may be “an early indicator of emerging borrower strain in some areas.” Elevated mortgage rates, insurance premiums, and upkeep expenses are pressuring homeowners and discouraging new buyers, leading some analysts to warn that the housing slowdown could spill into the broader economy.
Realtor.com found that one in every 1,402 U.S. housing units faced foreclosure in the third quarter, with Lakeland, Florida, showing the highest rate—one filing for every 470 homes. Other hot spots included Columbia, South Carolina; Cape Coral-Fort Myers, Florida; Cleveland, Ohio; and Ocala, Florida. As the outlet noted, “it’s no coincidence that three of the top five markets are in the Sunshine State.”
Experts attribute Florida’s surge to rising insurance and homeowners association fees, falling buyer demand, and declining home values that have eroded equity. “Foreclosure rates in Florida may be relatively high due to some combination of surging insurance premiums, climbing HOA fees, and falling buyer demand,” said Hannah Jones of Realtor.com. Geoff Smith of DePaul University added that insurance costs, interest rates, and property taxes have placed “increasing pressure on existing homeowners to continue to be able to afford and pay for their mortgages.”
Still, for some investors, the downturn represents opportunity. As Barber acknowledged, the same distress unsettling homeowners could open the door for buyers seeking undervalued properties in a cooling market.
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