Are Foreclosures Increasing in Central Florida? Here’s What Buyers and Sellers Should Know

If you’ve been watching the real estate news lately, you’ve probably seen headlines saying that foreclosures are on the rise. While that’s true, the full story is a little more nuanced.

Across the United States, foreclosure activity has continued to increase compared with last year. According to ATTOM Data, foreclosure filings rose approximately 14% in 2025 compared with 2024, and 2026 has continued that trend, with monthly foreclosure activity running above last year’s levels. However, today’s foreclosure numbers remain well below what we saw before the pandemic and are only a fraction of what occurred during the housing crash of 2008.

What About Florida?

Florida currently ranks among the states with the highest foreclosure rates in the country. Rising homeowners insurance premiums, higher property taxes, and increased monthly housing costs have placed additional pressure on some homeowners. At the same time, higher mortgage rates have made refinancing or selling more challenging for those already facing financial difficulties.

That said, it’s important to keep these numbers in perspective.

Most Florida homeowners have built significant equity over the past several years thanks to strong home appreciation. In many cases, homeowners who run into financial trouble are able to sell their homes before foreclosure becomes necessary.

What Does This Mean for Central Florida?

Here in Central Florida, we’re beginning to see more distressed properties enter the market than we did during the unusually low foreclosure years following the pandemic.

For buyers, this could create additional opportunities over the coming months. Some foreclosure and bank-owned homes may be priced below comparable properties, although they often require repairs or renovations.

For sellers, increasing foreclosure activity does not necessarily mean home values are falling. Inventory, buyer demand, neighborhood conditions, and pricing strategy continue to play a much larger role in determining what your home is worth.

Should Buyers Be Looking for Foreclosures?

Foreclosures can sometimes offer excellent value, but they aren’t always bargains. Many need substantial repairs, may have deferred maintenance, or can involve a more complicated purchasing process.

Having an experienced local Realtor can help you determine whether a foreclosure is truly a good deal or simply looks inexpensive at first glance.

The Bottom Line

Foreclosures are increasing compared with last year, but today’s market is nothing like the housing crisis of 2008. Most homeowners still have substantial equity, lending standards remain much stronger than they were then, and Central Florida continues to benefit from steady population growth.

If you’re curious about foreclosure opportunities, wondering what your home is worth, or simply want to understand what’s happening in your neighborhood, I’d be happy to help.

Thinking about buying or selling in Central Florida? Reach out anytime for local market insights tailored to your area.