Contact Us Today (813)-282-9330

Consumer Blog

Foreclosure on the Rise in Florida - Trouble Ahead

Posted by Sami Thalji | Jul 02, 2024

As the cost of living rises in the U.S., foreclosures are increasing. In May, foreclosure-related filings, such as default notices and scheduled auctions, rose by 7% from April and 14% from last year, totaling 35,196 properties, according to ATTOM, a real estate data group.

Lenders initiated foreclosure proceedings on 23,245 properties in May, marking a 4% increase from the previous month and a 5% increase from a year ago. States with the highest foreclosure starts included Florida (2,901), California (2,451), and Texas (2,286).

The rise in foreclosures reflects a normalization after pandemic-related loan forbearances and government aid. However, U.S. workers' incomes have yet to fully recover to pre-pandemic levels, adjusted for inflation, making it harder for some to keep up with payments.

In Florida, several large metro areas have seen particularly high foreclosure rates. For instance, Lakeland had 1 in every 1,361 housing units in foreclosure, followed by Elkhart, Indiana (1 in every 1,621), and Cleveland (1 in every 1,622).

While inflation rates have moderated to 4.9% in April, they remain nearly double pre-pandemic levels. The Federal Reserve anticipates keeping interest rates higher for longer to manage inflation. Despite economic challenges, the low unemployment rate suggests that widespread foreclosures akin to those during the 2007-2009 financial crisis are unlikely to occur.

Overall, while foreclosure filings are increasing, experts do not expect a crisis similar to the 2008 housing bubble burst.

About the Author

Sami Thalji

Sami Thalji is a native Floridian, born in Clearwater and raised in St. Petersburg, Florida. Sami graduated from Osceola High School in Seminole, Florida before attending and receiving both his Bachelor of Science and Juris Doctor from the University of Florida in Ga...


Our law firm only represents consumers and we have built our entire practice around that fact.