Foreclosure activity rose sharply between 2020 and 2025, with Florida recording the highest annual filings per ZIP code and a rural Texas community posting the largest six-year total.
By yourNEWS Media Newsroom
Foreclosure filings across the United States increased 71% from 2020 through 2025 as homeowners faced higher mortgage rates, rising property taxes, more expensive insurance and the expiration of pandemic-era protections.
The increase came even as home values remained near record levels, creating a difficult environment for borrowers whose monthly housing costs continued to rise despite strong property prices.
An analysis of Attom data found that Florida had the highest number of annual foreclosure filings per ZIP code during the period.
New Jersey ranked second, followed by Delaware, Nevada, South Carolina, Illinois, California, Maryland, Ohio and Arizona.
The ZIP code with the largest total number of foreclosures was 77327 in rural Liberty County, northeast of Houston. The area recorded 8,189 foreclosure filings over the six-year period.
The national increase reflects mounting financial pressure on homeowners who purchased or refinanced at higher interest rates, experienced sharp increases in property tax assessments or saw insurance premiums rise because of inflation, natural-disaster risks and changing insurer policies.
Higher mortgage rates have also made it more difficult for struggling homeowners to refinance into lower monthly payments. Borrowers who might once have reduced their costs through refinancing have instead faced rates that could leave them with the same payment or a higher one.
Property taxes have added another burden in areas where home values rose rapidly. Even homeowners with fixed-rate mortgages can see their monthly payments increase when taxes and insurance are collected through escrow accounts.
Insurance costs have become especially challenging in states exposed to hurricanes, wildfires and other severe weather. Some homeowners have faced large premium increases, reduced coverage options or difficulty finding an insurer willing to write a policy.
The end of foreclosure moratoriums, mortgage forbearance programs and other protections created during the COVID-19 pandemic also contributed to the rise. Those programs temporarily allowed many borrowers to delay payments or avoid foreclosure while facing job losses and economic disruption.
Once the protections expired, some homeowners were unable to resume payments or resolve accumulated debt.
Although the 71% increase is substantial, foreclosure activity remains well below the levels recorded during the height of the housing crisis under former President Barack Obama.
The earlier crisis was driven by widespread subprime lending, weak underwriting standards, falling home prices and large numbers of borrowers owing more than their homes were worth. The current increase is occurring in a different market, with elevated home values and generally stronger lending standards.
That distinction means many distressed homeowners may still have equity they can use by selling their properties before foreclosure is completed. However, high borrowing costs, limited affordable housing and rising living expenses can still make it difficult for families to recover once they fall behind.
The state rankings also show that foreclosure pressure is not limited to one region. The 10 states with the highest annual filings per ZIP code include communities across the South, Northeast, Midwest and West.
Florida’s position at the top reflects the combination of rapid home-price growth, elevated insurance costs, storm exposure and rising ownership expenses. Nevada and Arizona also experienced major housing growth during and after the pandemic, while New Jersey, Delaware and Maryland have long had relatively high property taxes and housing costs.
The concentration of 8,189 filings in ZIP code 77327 demonstrates that significant foreclosure activity can also occur outside major metropolitan centers. Rural and small-town homeowners may face fewer employment opportunities, limited access to housing counselors and fewer options for selling properties quickly when financial problems arise.
The increase does not necessarily mean every filing resulted in a completed foreclosure. Filings can include default notices, scheduled auctions and bank repossessions, and some cases are resolved through loan modifications, repayment agreements or property sales.
Even so, the growth in filings signals that more homeowners are entering serious stages of mortgage distress.
With borrowing rates remaining elevated and taxes and insurance continuing to pressure household budgets, foreclosure activity may remain a concern despite strong home values. The six-year increase shows that rising ownership costs can place households at risk even when the broader housing market appears financially strong.
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