The post-pandemic housing market is showing troubling signs as foreclosure numbers climb nationwide.
From Florida to Delaware, foreclosure filings are climbing — and some states are seeing rates far above the national average. Here's where the pressure is building and what you can do about it.
If you're a homeowner watching the news about rising foreclosure numbers, it's natural to feel uneasy — especially if you're already juggling debt payments or dealing with a financial setback. The reality is that foreclosure activity has been climbing steadily, and certain parts of the country are feeling the squeeze more than others.
In 2025,367,460 properties received foreclosure filings, a 14% increase from 2024. By May 2026, monthly filings reached40,355 properties — a rate of one in every 3,562 housing units nationally. That's up 14% year over year, even as monthly numbers dipped 5% from April 2026. For homeowners carrying other debts alongside their mortgage,comparing debt consolidation options can help free up cash flow before things escalate.
Below, we break down the seven states with the highest foreclosure rates right now, what's driving these numbers, and what steps you can take to protect yourself.
What Will You Learn From This Article?
Foreclosure filings hit 367,460 in 2025 — up 14% from the prior year.
Florida leads the nation at one filing per 2,110 housing units in May 2026.
Expiring forbearance, rising insurance costs, and inflation are key drivers.
Early action and free HUD counseling can help homeowners avoid foreclosure.
Why Does This Matter?
Foreclosure trends aren't just housing-market statistics — they directly affect your financial stability, your neighborhood's property values, and your options if you're carrying debt. When foreclosure activity climbs in your state, it can signal broader economic pressures that may impact your own mortgage, home equity, and ability to sell or refinance. For anyone already managing multiple debt payments, understanding where foreclosures are rising helps you gauge your risk and act before small financial gaps become serious problems.
How Does It Work?
A foreclosure filing is a legal action triggered when a homeowner falls behind on mortgage payments. The process typically unfolds in three stages: a notice of default (the lender formally notifies the borrower), a scheduled auction (the property is listed for public sale), and a bank repossession (the lender takes ownership if the property doesn't sell). ATTOM's monthly foreclosure data counts all three stages as "filings," which is why the numbers reflect the full pipeline of distress — not just completed foreclosures. The timeline varies by state: some states require a court process (judicial foreclosure), which can take a year or more, while others allow faster non-judicial proceedings.
How We Researched This
This article draws on the most recently available state-by-state foreclosure data fromATTOM Data Solutions' U.S. Foreclosure Market Report (May 2026 release) and full-year 2025 analysis fromReady Signal. We cross-referenced filing counts and rates per housing unit for all 50 states, identified the top seven by rate, and reviewed county-level breakdowns to surface local patterns. Prevention guidance references resources from theConsumer Financial Protection Bureau (CFPB) and HUD-approved housing counseling programs.
Which States Have the Highest Foreclosure Rates Right Now?
Seven states currently have foreclosure rates well above the national average of one in 3,562 housing units, according toATTOM's May 2026 data. Here's how they stack up.
Rank
State
Foreclosure Rate
Total Filings
Housing Units
1
Florida
1 in 2,110
4,861
10,256,470
2
South Carolina
1 in 2,287
1,068
2,443,039
3
Maryland
1 in 2,369
1,081
2,560,784
4
Nevada
1 in 2,386
556
1,326,471
5
Indiana
1 in 2,516
1,183
2,976,568
6
Utah
1 in 2,576
475
1,223,468
7*
Delaware
1 in 1,739
267
464,203
*Delaware's per-unit rate is technically the highest on this list, but its very small housing stock (464,203 units) means a relatively small number of filings produces an outsized rate. States are ranked here by total filing volume weighted against housing stock size.
Why Is Florida Leading the Nation in Foreclosures?
Florida tops the list with one in every 2,110 housing units in foreclosure — and it held the number-one spot for all of 2025, when0.44% of the state's residential properties received filings. The hardest-hit counties in May 2026 include Hamilton, Charlotte, Hendry, and Osceola. Surging property insurance premiums, a tourism-dependent economy, and a large share of post-pandemic home purchases made at elevated prices are all contributing to the pressure on Florida homeowners.
What's Happening With Foreclosures in South Carolina?
South Carolina ranks second nationally, with one in every 2,287 homes facing foreclosure. Kershaw, Union, Richland, and Greenwood counties are reporting notable filing activity. The state's mix of rural economic challenges and rapid metro-area growth has left some homeowners stretched thin, particularly those who bought during the 2021–2022 price surge.
Why Is Maryland Seeing Elevated Foreclosure Rates?
Maryland comes in at third with a rate of one in 2,369 housing units. Baltimore City, Charles, Allegany, and Dorchester counties report elevated filing activity. Persistent affordability gaps between the Baltimore-Washington corridor and more rural parts of the state are amplifying foreclosure risk for homeowners who've seen their incomes lag behind rising costs.
What's Driving Nevada's Foreclosure Numbers?
Nevada holds the fourth-highest rate at one in 2,386 homes. Lyon, Clark, Mineral, and Nye counties are among those with higher filing counts. A tourism-dependent economy contributes to income volatility for many Nevada homeowners, as explained in the drivers section below.
Why Is Indiana on the List?
Indiana ranks fifth with one foreclosure filing for every 2,516 housing units. Lake, Grant, Vermillion, and Perry counties lead the state's filings. Indiana's relatively affordable housing market means even modest income disruptions can push homeowners into missed payments, and some of the state's manufacturing-dependent communities have faced persistent job-market instability.
What's Behind Utah's Rising Foreclosure Rate?
Utah may surprise some observers — its booming economy and rapid population growth haven't shielded it from foreclosure pressures. The state ranks sixth with a rate of one in 2,576 housing units. Garfield, Tooele, Sevier, and Sanpete counties are reporting the highest activity. Rapid home-price appreciation during 2020–2022 left some buyers with mortgages that became harder to sustain once interest rates climbed.
Why Is Delaware a State to Watch?
Delaware rounds out our list, and its story is noteworthy. The state actually had the highest foreclosure rate in the country during Q1 2025 and currently sits at one in 1,739 housing units — technically above every other state on this list. With only 464,203 total housing units, even a relatively small number of filings (267 in May 2026) produces an outsized rate. Kent, New Castle, and Sussex counties account for virtually all of the state's activity. Delaware's small size means localized economic shifts, like a single large employer downsizing, can ripple through the housing market quickly.
What's Driving the Increase in Foreclosures?
The rise in foreclosure activity isn't caused by a single factor — it's the result of several overlapping pressures hitting homeowners at the same time. In some of these same states,consumer bankruptcy filings are also rising, signaling broader financial distress.
What Happened When Pandemic Forbearance Programs Ended?
Many homeowners who paused mortgage payments during 2020-2021 are now facing the consequences of those deferred balances. AsATTOM's reporting shows, this transition has triggered foreclosure spikes in several states, with some borrowers unable to resume regular payments or work out modification agreements with their lenders.
How Are Interest Rates and Inflation Affecting Homeowners?
Higher interest rates have limited refinancing options for struggling homeowners, while inflation continues to strain household budgets. This combination has made it increasingly difficult for many to maintain their mortgage payments while managing other essential expenses like groceries, utilities, and insurance.
How Does Job Market Instability Play a Role?
Employment instability in certain regions and sectors has directly impacted homeowners' ability to meet mortgage obligations. This is particularly visible in states like Indiana and Nevada, where manufacturing slowdowns and tourism-sector volatility can leave workers facing sudden income drops.
Why Are Insurance Costs Making Things Harder?
In states like Florida, property insurance premiums have surged dramatically over the past three years. For some homeowners, insurance costs have doubled or tripled — adding hundreds of dollars per month to carrying costs that were already stretched thin. When the total cost of homeownership rises faster than income, foreclosure risk climbs with it.
How Do Regional Economic Disparities Factor In?
Local economic conditions play a crucial role in foreclosure patterns. The gap between states is significant — Delaware and Florida have rates roughly 50–100% above the national average of one filing per 3,562 housing units, while other states see far fewer filings. These variations extend to the county level, where neighboring areas often show markedly different foreclosure rates based on local job markets, industries, and housing supply.
What Role Does Tourism and Service Economy Volatility Play?
States like Florida and Nevada depend heavily on tourism and hospitality for employment. When travel demand softens or seasonal patterns shift, homeowners working in those industries can see their hours and income fluctuate rapidly — making consistent mortgage payments a challenge.
How Are Foreclosures Affecting Housing Markets?
Rising foreclosure filings are creating a mixed picture — most markets remain stable thanks to strong demand, but pockets of distress are opening up new dynamics for both homeowners and buyers.
What's Happening With Home Prices Despite Rising Foreclosures?
Despite rising foreclosure activity, home prices have remained resilient in many markets. Limited housing inventory and strong buyer demand continue to support prices across most price tiers. However, areas with concentrated foreclosure activity may see localized price softening as distressed properties enter the market.
Are There Opportunities for Buyers in High-Foreclosure States?
The rise in foreclosure filings has created entry points for new market participants. With40,355 properties receiving foreclosure notices nationwide in May 2026, buyers are finding increased inventory in previously competitive markets, especially in states like Florida and Nevada where foreclosure rates are notably high.
What Are the Long-Term Market Implications?
While some states are handling the foreclosure increase better than others, the key for homeowners is early action. If you're starting to face financial challenges, exploring options like mortgage modifications or refinancing with your lender can help you avoid potential issues.
How Do Current Foreclosure Rates Compare to Pre-Pandemic Levels?
Despite the headlines, today's foreclosure numbers are still well below historical peaks. Here's the context, according toReady Signal's 2025 analysis:
Year
Foreclosure Rate (% of Housing Units)
Context
2010 (crisis peak)
2.23%
Height of the Great Recession foreclosure wave
2019 (pre-pandemic)
0.36%
Stable market baseline before COVID-19
2025
0.26%
Rising from pandemic lows, but still below 2019 levels
In other words, while filings climbed 14% year over year in 2025, the overall rate of 0.26% is still roughly 28% lower than the pre-pandemic baseline of 0.36% — and nowhere near the 2.23% rate seen during the 2010 crisis. What we're seeing is a return toward normal market conditions after years of artificially suppressed foreclosure activity, not a repeat of the housing crash.
That said, the trend line matters.Bank repossessions (REOs) reached 46,439 in 2025 — up 27% from 2024 — and foreclosure starts rose 14% to 289,441. The pipeline is accelerating, even if the absolute numbers remain manageable compared to historical peaks.
What Can Homeowners Do to Prevent Foreclosure?
Many government and non-profit programs are available to assist homeowners facing potential foreclosure. These include mortgage assistance programs, housing counseling services, and legal aid. TheConsumer Financial Protection Bureau (CFPB) website also offers resources and information on foreclosure prevention.
What Steps Should You Take if You're Facing Potential Foreclosure?
Taking action early gives you the most options — here are the five steps that make the biggest difference.
Contact your lender early: Don't wait until you miss a payment to reach out. Being proactive gives you access to more options, like loan modifications or temporary payment reductions.
Connect with a HUD-approved housing counselor: These experts offer free or low-cost consultations and can guide you through available assistance programs, both local and federal.
Track your finances: Create a detailed breakdown of your monthly income and expenses. Understanding your financial situation helps you identify which relief options work for you.
Know your rights: Research foreclosure laws in your state and familiarize yourself with borrower protections. A housing counselor can help explain these rights.
Document everything: Keep detailed records of all communications with your lender and counselors, including dates, names, and what was discussed.
What Does the Foreclosure Outlook Look Like?
Foreclosure activity is likely to keep rising gradually, but the data suggests a normalization trend — not a crisis.May 2026 filings were up 14% year over year, and the accelerating REO pipeline (up 27% in 2025) suggests more completed foreclosures ahead. However, the 2025 foreclosure rate of 0.26% remains well below the pre-pandemic baseline of 0.36%, indicating the market still has room before reaching historical norms.
Which Economic Indicators Should You Watch?
Five indicators are worth tracking closely if you want to anticipate where foreclosure trends are headed.
Interest rate movements: Changes in mortgage rates could significantly impact homeowners with adjustable-rate mortgages or those hoping to refinance.
Regional employment trends: Job market stability in different states and sectors will likely influence homeowners' ability to maintain mortgage payments.
Housing inventory levels: The balance between housing supply and demand could affect property values and homeowners' ability to sell if they face financial difficulties.
Consumer debt levels: Rising household debt burdens might signal increased risk of mortgage payment challenges.
Local market dynamics: Population shifts, development patterns, and regional economic growth will continue to shape foreclosure patterns across different states.
Your Questions, Answered (FAQs)
Which states have the highest foreclosure rates right now?
As of May 2026, the states with the highest foreclosure rates are Florida (1 in 2,110 housing units), South Carolina (1 in 2,287), Maryland (1 in 2,369), Nevada (1 in 2,386), and Indiana (1 in 2,516), according toATTOM Data Solutions.
What are the primary causes of the spike in foreclosures?
The main drivers include the end of pandemic-era forbearance programs, elevated interest rates limiting refinancing options, rising insurance costs (particularly in Florida), inflation straining household budgets, and regional economic challenges in tourism- and manufacturing-dependent areas.
How do current foreclosure rates compare to the national average?
The national average in May 2026 is one foreclosure filing per 3,562 housing units. States like Florida (1 in 2,110) and Delaware (1 in 1,739) have rates roughly 50-100% higher than that average, while other states remain well below it.
What measures are being taken to address foreclosure risks?
Federal and state governments continue to fund housing counseling services, foreclosure mediation programs, and financial assistance for struggling homeowners. The CFPB maintains updated resources for borrowers at risk, and HUD-approved counseling agencies provide free guidance nationwide.
Is this another 2008 housing crash?
No. While foreclosure filings are rising, the 2025 rate of 0.26% of housing units is dramatically lower than the 2.23% rate seen during the 2010 crisis peak,according to Ready Signal. Today's increases reflect a normalization from pandemic-era lows — not a systemic financial collapse. Lending standards are tighter, and most homeowners have significant equity compared to the underwater mortgages that fueled the 2008 crisis.
What Does This Mean for You?
Your next steps depend on where you stand right now. If you're currently behind on mortgage payments, contacting your lender and a HUD-approved housing counselor should be your immediate priority — the earlier you engage, the more options you'll have. If you're keeping up with your mortgage but carrying high-interest credit card or medical debt alongside it, reducing those payments through consolidation can give you more breathing room to stay current. And if you're a potential buyer looking at high-foreclosure states like Florida or Nevada, rising filings may create opportunities — but do your homework on local market conditions before jumping in.
The Bottom Line
Foreclosure filings reached 367,460 in 2025 and continue climbing into 2026, with Florida, South Carolina, Maryland, Nevada, Indiana, Utah, and Delaware posting rates well above the national average. The trend reflects a normalization from pandemic-era lows — not a repeat of the 2008 crisis — but the steady climb in filings means homeowners in affected states should pay attention and act early.
What Should You Do Next?
If you're in one of these states — or anywhere foreclosure activity is climbing — the single most important step is acting early. Contact your lender before you miss a payment, and connect with a HUD-approved housing counselor for free guidance on your options.
If you're carrying other debts alongside your mortgage, reducing those monthly obligations can help protect your ability to keep up with housing payments.Consolidating credit card debt doesn't directly prevent foreclosure — it combines unsecured debts like credit cards and medical bills into a single payment — but freeing up cash flow gives you more room to manage your mortgage.Compare debt consolidation options to see what might work for your situation.
Why Trust BestMoney on This?
This article was researched and written by BestMoney's editorial team, which includes writers and editors with backgrounds in personal finance, real estate, and consumer advocacy. Our team analyzed publicly available foreclosure data from ATTOM Data Solutions, cross-referenced it with federal housing resources, and consulted industry reporting to ensure accuracy.
[EDITORIAL: Insert expert-reviewer bio — credentials, specializations, and certifications if applicable.]
Meagan Drew is a personal finance and loans expert at BestMoney.com. She has written for publications such as Investopedia, Apple News+, and SimpleMoneylyfe.com. With seven years of experience as a financial advisor, Meagan specializes in making complex topics like budgeting and investing accessible and engaging for everyday consumers.
