{"id":186943,"date":"2026-02-24T09:04:50","date_gmt":"2026-02-24T16:04:50","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=186943"},"modified":"2026-02-24T09:06:12","modified_gmt":"2026-02-24T16:06:12","slug":"foreclosure-filings-up-19-percent-dec-2025","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/foreclosure-filings-up-19-percent-dec-2025","title":{"rendered":"Foreclosure Starts are Up 19%\u2014These Counties are Seeing the Highest Distress"},"content":{"rendered":"\n<p><span data-preserver-spaces=\"true\">Foreclosure activity doesn\u2019t end quietly\u2014and December 2025 proved that point emphatically.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">After a relatively mixed fall, Foreclosure Starts jumped sharply nationwide, rising nearly 19% month over month and more than 44% year over year.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">That acceleration at the very front of the foreclosure pipeline matters because Starts represent the earliest public signal of homeowner distress\u2014well before properties reach auction or become bank-owned.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">For real estate investors, Foreclosure Starts are often the first place where opportunity begins to form. They highlight where financial pressure is building, where motivated sellers may soon emerge, and where future auction and REO inventory is likely to materialize in the months ahead.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">December\u2019s data tells a clear story: Distress reaccelerated heading into year-end, with <\/span><span data-preserver-spaces=\"true\">especially<\/span><span data-preserver-spaces=\"true\"> sharp increases in several key states and counties that investors should <\/span><span data-preserver-spaces=\"true\">be watching<\/span><span data-preserver-spaces=\"true\"> closely as we go deeper into 2026.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">National Foreclosure Starts Rebound Strongly<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">In December 2025, the U.S. recorded 27,640 Foreclosure Starts, representing:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">+18.94% month over month<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">+44.66% year over year<\/span><\/strong><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> was one of the strongest monthly increases in early-stage filings we\u2019ve seen in 2025. While foreclosure activity often slows toward the end of the year, December broke that seasonal pattern decisively.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The year-over-year growth is especially notable. Compared to December 2024, Foreclosure Starts are nearly 45% higher nationwide, reinforcing that financial strain remains elevated for a growing number of households despite a resilient labor market.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">State-Level Breakdown: Five Markets Driving the Increase<\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Florida<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Florida <\/span><span data-preserver-spaces=\"true\">continues to be<\/span><span data-preserver-spaces=\"true\"> one of the most active foreclosure states in the country. December\u2019s increase followed November\u2019s pullback, signaling that early-stage distress remains persistent rather than temporary.<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">3,274 Starts<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">+16.14% MoM<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">+81.39% YoY<\/span><\/strong><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">California<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">California saw a meaningful monthly rebound but remains essentially flat year over year. <\/span><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> suggests short-term volatility rather than a structural acceleration\u2014at least for now.<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">2,389 Starts<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">+14.31% MoM<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">-0.21% YoY<\/span><\/strong><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Ohio<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Ohio posted one of the strongest month-over-month increases among major states, reinforcing its role as a steady but growing foreclosure market.<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">1,060 Starts<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">+24.12% MoM<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">+14.10% YoY<\/span><\/strong><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">North Carolina<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">North Carolina was the notable exception. Starts fell sharply in December, suggesting that much of the state\u2019s distress has already moved further down the pipeline into auctions.<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">337 Starts<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">-35.81% MoM<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">-3.44% YoY<\/span><\/strong><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Texas<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Texas <\/span><span data-preserver-spaces=\"true\">delivered<\/span><span data-preserver-spaces=\"true\"> the <\/span><span data-preserver-spaces=\"true\">most dramatic<\/span><span data-preserver-spaces=\"true\"> increase of any state in December.<\/span><span data-preserver-spaces=\"true\"> Starts surged more than 57% month over month and nearly 60% year over year\u2014an unmistakable signal that early-stage distress is accelerating rapidly.<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">4,104 Starts<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">+57.12% MoM<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">+58.09% YoY<\/span><\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">County-Level Insights: Where New Distress Is Emerging<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">State-level averages only tell part of the story. When we drill down to the county level, we can see where Foreclosure Starts are meaningfully rising\u2014and where future opportunities may develop.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Florida: Central and Gulf Coast pressure builds<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Despite Florida\u2019s statewide growth in Foreclosure Starts, the increases <\/span><span data-preserver-spaces=\"true\">were not evenly distributed<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Lee County <\/span><\/strong><span data-preserver-spaces=\"true\">recorded a meaningful jump in Starts, continuing its pattern of elevated distress along the Gulf Coast.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Orange County (Orlando)<\/span><\/strong><span data-preserver-spaces=\"true\"> also saw a noticeable increase, reflecting growing pressure in investor-heavy neighborhoods.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Miami-Dade and Broward Counties <\/span><\/strong><span data-preserver-spaces=\"true\">remained elevated but showed less acceleration than earlier in the year.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Investor takeaway<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Florida\u2019s distress is broadening geographically, not contracting. Central Florida and Gulf Coast markets are likely to feed auction activity in early 2026.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">California: Inland Empire reawakens<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">California\u2019s December rebound was driven primarily by inland markets.<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Riverside County<\/span><\/strong><span data-preserver-spaces=\"true\"> posted a clear month-over-month increase in Starts.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">San Bernardino County<\/span><\/strong><span data-preserver-spaces=\"true\"> followed a similar pattern, particularly in areas dominated by investor-owned rentals.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Los Angeles County<\/span><\/strong><span data-preserver-spaces=\"true\"> showed modest growth but remained relatively stable.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Investor takeaway<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">The Inland Empire continues to act as California\u2019s foreclosure pressure valve. <\/span><span data-preserver-spaces=\"true\">Investors focused on early outreach should monitor Riverside and San Bernardino <\/span><span data-preserver-spaces=\"true\">closely<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Ohio: Columbus emerges as a standout<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Ohio\u2019s December increase was heavily influenced by:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Fra<\/span><span data-preserver-spaces=\"true\">nklin County (Columbus)<\/span><\/strong><span data-preserver-spaces=\"true\">, which saw one of the strongest MoM increases in <\/span><span data-preserver-spaces=\"true\">the state.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">C<\/span><span data-preserver-spaces=\"true\">u<\/span><span data-preserver-spaces=\"true\">yahoga County (Cleveland)<\/span><\/strong><span data-preserver-spaces=\"true\"> rebounded after a softer November.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Hamilton County (Cincinnati)<\/span><\/strong><span data-preserver-spaces=\"true\"> remained steady.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Investor takeaway<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Columbus continues to outperform other Ohio metros in early-stage distress, making it a key market to watch in 2026.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">North Carolina: Starts cool as auctions take <\/span><span data-preserver-spaces=\"true\">over<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">North Carolina\u2019s drop in starts was driven by:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Mecklenburg County (Charlotte) and Wake County (Raleigh)<\/span><\/strong><span data-preserver-spaces=\"true\"> both showed reduced early-stage filings.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> aligns with the sharp rise in Notice of Sale activity seen elsewhere in the state.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Investor takeaway<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">North Carolina\u2019s foreclosure pressure has not disappeared\u2014it has simply moved downstream into auctions.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Texas: A surge that demands attention<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Texas\u2019 spike was widespread and powerful.<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Harris County (Houston)<\/span><\/strong><span data-preserver-spaces=\"true\"> accounted for a large share of the increase.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Dallas and Tarrant Counties<\/span><\/strong><span data-preserver-spaces=\"true\"> also posted sharp gains.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Bexar County (San Antonio)<\/span><\/strong><span data-preserver-spaces=\"true\"> continued its steady upward trend.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Investor takeaway<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Texas\u2019<\/span><span data-preserver-spaces=\"true\"> fast, nonjudicial foreclosure process means today\u2019s Starts can become auctions in a matter of weeks. December\u2019s surge is likely to translate quickly into a visible opportunity.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How Investors May Use Foreclosure Start Data<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Foreclosure Starts are not just statistics\u2014they are <\/span><strong><span data-preserver-spaces=\"true\">signals<\/span><\/strong><span data-preserver-spaces=\"true\">. Investors may use this data to:<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Identify pre-foreclosure outreach opportunities<\/span><\/strong><span data-preserver-spaces=\"true\"> before auctions <\/span><span data-preserver-spaces=\"true\">are scheduled<\/span><span data-preserver-spaces=\"true\">.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Anticipate future Notice of Sale and REO inventory<\/span><\/strong><span data-preserver-spaces=\"true\"> months in advance.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Focus marketing and acquisition efforts<\/span><\/strong><span data-preserver-spaces=\"true\"> on counties where Starts are accelerating.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Plan retirement-account investments using a Self-Directed IRA or Solo 401(k)<\/span><\/strong><span data-preserver-spaces=\"true\">, where early-stage timelines allow for proper structuring, financing, and due diligence.<\/span><\/li>\n<\/ol>\n\n\n\n<p><span data-preserver-spaces=\"true\">By tracking Starts alongside later-stage filings, investors can build a more complete, forward-looking strategy rather than reacting after inventory hits the open market.<\/span><\/p>\n\n\n\n<p><strong><span data-preserver-spaces=\"true\">Required Disclaimer<\/span><\/strong><\/p>\n\n\n\n<p><em><span data-preserver-spaces=\"true\">Equity Trust Company is a directed custodian and does not provide tax, legal, or investment advice. Any information communicated by Equity Trust is for educational purposes only and should not <\/span><span data-preserver-spaces=\"true\">be construed<\/span><span data-preserver-spaces=\"true\"> as tax, legal, or investment advice. Whenever making an investment decision, please consult with your tax attorney or financial professional.<\/span><\/em><\/p>\n\n\n\n<p><em><span data-preserver-spaces=\"true\">BiggerPockets\/PassivePockets <\/span><span data-preserver-spaces=\"true\">is not affiliated<\/span><span data-preserver-spaces=\"true\"> in any way with Equity Trust Company or any of Equity\u2019s family of companies. Opinions or ideas expressed by BiggerPockets\/PassivePockets are not necessarily those of Equity Trust Company, nor do they reflect their views or endorsement. The information provided by Equity Trust Company is for educational purposes only. Equity Trust Company and <\/span><span data-preserver-spaces=\"true\">their<\/span><span data-preserver-spaces=\"true\"> affiliates, representatives, and officers do not provide legal or tax advice. Investing involves risk, including possible loss of principal. Please consult your tax and legal advisors before making investment decisions. Equity Trust and BiggerPockets\/PassivePockets may receive referral fees for any services performed as a result of being referred opportunities.<\/span><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Foreclosure activity doesn\u2019t end quietly\u2014and December 2025 proved that point emphatically. After a relatively mixed fall, Foreclosure Starts jumped sharply nationwide, rising nearly 19% month over month and more than [&hellip;]<\/p>\n","protected":false},"author":613768,"featured_media":183997,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-186943","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-trends"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/186943","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613768"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=186943"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/186943\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/183997"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=186943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=186943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=186943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}