Florida, Florida Foreclosure, Foreclosure

Does Florida Have a High Rate of Foreclosure?

Foreclosure for sale sign in Florida
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The rate of foreclosure across the United States varies from year to year based on a whole spread of market conditions. Understanding the rate of foreclosure, as well as the factors that affect it, is a powerful tool for families facing foreclosure in Florida.

In wrapping up the year’s third quarter, real estate data company ATTOM, reported the increased percentage of foreclosed homes in Florida. Overall, there’s an increase in foreclosures nationwide, however, Florida’s rate is slightly higher than the national average.

According to ATTOM, Florida is ranked amongst states with the highest foreclosure rates. As of September 2022, florida’s foreclosure rate increased to 71%.

ATTOM reported 9,284 foreclosure filings during the quarter, with 6,671 starts. Florida holds the #2 spot when ranked amongst states with the highest foreclosure rates.

What exactly is foreclosure?

House facing foreclosure in Florida

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When someone purchases a home, it is usually the bank that issues the loan to cover the cost of the home. The homeowner, now borrower, must make payments on that loan – which is known as a mortgage. When the borrower defaults on payments, they run the risk of their home going into foreclosure.

The window of time borrowers have in order to avoid foreclosure is 120 days. Borrowers are notified of being in default, and are allowed to make payments. However, if they continue to default, while exceeding that 120 window, the bank has the right to take possession of the home. The bank acquires ownership over the home and, with the goal of recovering the amount of the loan, the bank will auction off the home.

Florida is a judicial foreclosure state. Therefore, if a bank or HOA want to foreclose on a home, they must have approval from a presiding judge. The bank or HOA must file with the circuit court of the county in which the property is located. Plainly speaking, the lender – whether the bank or HOA – must file suit.

Where are the most foreclosures in Florida?

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close up of FLORIDA thru a magnifying glass

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Osceola County, FL, which lies within metropolitan triad Orlando-Kissimmee-Sanford has one of the highest foreclosure rates. In fact, it has the highest rate of foreclosures in any U.S. county. ATTOM reported that in Osceola County, 478 homes were in foreclosure by the first half of 2022 – a 239% increase compared to the first half of 2021.

Between 2016-2020, Osceola County’s median income was $55,538, as per the U.S. Census, meanwhile the average cost of a home was $221,600. For scale, the average American household’s annual income is $64,994, while the nation’s average cost of a home is $229,800.

[Sources: The Capitalist, The Center Square]

Some other areas containing a significant amount of foreclosures include: Orange County, FL; Hillsborough County, FL; Broward County, FL; Miami-Dade County, FL; Palm Beach County, FL; Lee County, FL; Gulf County, FL; and Manatee County, FL.

Foreclosures are, in part, due to an increase in inflation. With the cost of items such as food, gas, and other essential items going up, homeowners are pressured with financial upkeep. Consumers aren’t solely relying on cash flow, however. They’re also relying on credit cards – which creates another expense. Unfortunately, mortgages have the potential to suffer as a result. And, with no relief from inflation in sight, the chances of home owners’ mortgages being affected down the line is very likely.

How do I find out if a property is in foreclosure in Florida?

Below are a list of sites that can guide you in your search for foreclosed property in Florida.

Florida Foreclosure Listings is a database of foreclosure listings throughout Florida. You will be able to view listings of properties and all their details, including: photos and price listings. Florida Foreclosure Listings can also provide you with a list of foreclosed property, daily, if you’re interested. Check out their website.

Hud Homes USA is another site that lists foreclosed homes. By entering the zip code and/or city and state, you will have access to all the foreclosed real estate listings in your desired location. Hud Homes USA isn’t solely limited to foreclosures, however. You will also have access to other property listings such as lease to own homes, auctioned homes, and even pre-foreclosure homes. Visit their website here.

Bank of America’s Real Estate Center® is another great place to begin your search for Florida bank-owned homes. Your real estate agent and mortgage loan officer can help you understand the loan solutions available when purchasing a foreclosed home in Florida. Visit their website here.

RealtyTrac is a great starting point as well. This site grants you access to an unlimited amount of foreclosure listings. This site covers nationwide foreclosures, however, you are able to narrow your search down to Florida foreclosures. You can go even further and narrow your search down to bank-owned homes, pre-foreclosure, auctioned, etc., allowing you to get as specific as possible in your search. Currently, RealtyTrac has well over 36,000 listings throughout Florida. Visit their website here.

Foreclosure Watch is another database that allows you to pinpoint your search to Florida foreclosures and find exactly what you’re looking for. Foreclosure Watch also guides potential buyers, providing information as though it is their first time entering the real estate market. Foreclosure Watch is very thorough advising those, especially if a foreclosed home will be their first buy. Check out the Knowledge Center, as well as their main home page.

How do I buy foreclosures in Florida?

money for a house in foreclosure in Florida

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Maybe the idea of buying foreclosed property has been rolling around in your mind, but you’ve yet to take the opportunity to follow through. Maybe you don’t know where to start, what sites to visit, or something as simple as the price of a foreclosed home. Here are a few tips to get you started in purchasing a foreclosed home.

You, first, would want to begin your research by learning about homes that have gone into foreclosure. How you narrow your search depends on location and budget for starters. You may also want to consider your long term plans. For example, some people will purchase foreclosed homes to live in, meanwhile others will purchase it to house tenants; bed and breakfasts are options as well.

Your research will yield the average price of foreclosed home values as well. This will help you round out your budget when it is time to meet with a realtor.

The next step is researching realtors that have experience in foreclosure real estate. Realtors can save you a lot of time. And, they can find you better auction opportunities and guide you throughout the sale process.

Lastly, attend auctions. Bid. Win.

Where can I find a realtor?

Looking for a realtor is a process. Looking for a realtor with experience in foreclosure sales can be a lengthier process. We’ve compiled a list of realtors for you, so that you can get a jump start.

Lang Realty, Boca Raton, FL

realtor in Florida for foreclosure

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Lang Realty has been in business over 20 years, serving areas such as Boca Raton, Delray Beach, Palm Beach, Jupiter, and Port St. Lucie. Lang Realty employs well over 400 professionals that can help you in your next real estate venture. Check out their website here.

Home Pride Group, St. Cloud, FL

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Home Pride Group Realty, is based in St. Cloud, FL – a city located within Osceola County. The company consists of 25 realtors, with Steve Pugh being the Team Leader and Broker Associate. This realty group services areas throughout Florida such as Kissimmee, Davenport, and Orlando. Aside from assisting with foreclosure sales, Home Pride Group Realty provides vendor information for clients, including lenders, inspectors, and contractors. Perspective clients are encouraged to ask questions via their Resources page. Also, check out their homepage.

The Merge Group, Tampa, FL

realtor for foreclosed homes in Florida

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While The Merge Group is based in Tampa, it also practices real estate in areas such as Manatee, Sarasota, and Jacksonville. With over 20 realtors, The Merge group is more than equipped to meet their clients’ needs in search of foreclosed properties. They also strive to save their clients money during the closing period. Take a look at this very informative video they’ve provided. And, be sure to check out the rest of their website.

What is MLS?

MLS, or multiple listing service, is a private database that realtors use amongst each other to see listings. Some MLS systems do allow clients to have access, however. Many realtors utilize MLS databases to aide their clients in buying and selling property. You may benefit from a MLS system in your search to purchase a home.

While MLS sounds similar to the common apartment and house-hunting apps and websites, it is not. MLS databases provide the most up to date information on property listings. Also, real estate agents and brokers post listings on MLS databases first, before posting on any other site.

In short, an MLS allows brokers to connect home buyers to sellers.

Is MLS used in foreclosure listings?

Yes. MLS is used in foreclosures to facilitate the process, just as it’s used in traditional home sales.

So, Florida does have a high foreclosure rate?

House in foreclosure in Florida

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Florida does, in fact, have a high rate of foreclosures. If purchasing foreclosed property has been an idea of yours for quite some time, this may be the opportunity to take advantage of the market. Once banks and lenders seize property, their goal is to make a sale in an attempt to recover their losses. Whether you want to move to a new city in Florida, put down more roots in your hometown, or invest in real estate, this could be your chance – and the opportunity to save money while doing it.

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