Southwest Florida has become ground zero for foreclosures in the U.S. New data from ATTOM paints a stark picture: For the first six months of 2026, America saw 227,548 properties hit with foreclosure filings, a 21% jump from last year and 28% higher than two years ago.
What’s fueling this climb? Runaway insurance costs and growing economic uncertainty are making it hard for many people to keep up with their mortgages, especially in Florida.
Rob Barber, ATTOM’s CEO, isn’t sounding any alarms just yet. He points out this rise is part of the market “normalizing,” returning to more typical patterns after years of disruption. Still, he notes, the uptick suggests more homeowners are feeling financial stress.
Let’s look at the states taking the biggest hit this year. Florida’s numbers stand out: 0.27% of housing units statewide (one in every 370 homes) faced a foreclosure filing, the worst in the nation. Following close behind are South Carolina, Indiana, Delaware, and Illinois. Meanwhile, states like Idaho, Colorado, Georgia, North Carolina, and Mississippi saw foreclosure activity rise over 45% from last year.
Things are even worse when we zoom into metro areas. Punta Gorda, Florida takes the dubious crown, with 0.50% of homes having a foreclosure filing in just six months. Lakeland, Florida isn’t far behind at 0.48%. Columbia, South Carolina, and cities like Macon, Georgia, and Fayetteville, North Carolina, are also deep in the red zone.
If you look at big cities, Florida dominates the list. Cape Coral, Jacksonville, and Ocala all make the top ten for the highest foreclosure rates among major metros.
More detail: Lenders started foreclosure on 164,566 properties in the first half of 2026, up 18% from last year. Texas and Florida lead the pack for new filings, with over 20,000 each. On the flip side, banks completed fewer foreclosures (REOs) than in 2020, about 28,000 nationally, but that’s still 33% more than last year.
One trend stands out: it’s taking less time for lenders to move through the foreclosure process. In Q2 2026, the average was just 563 days, down 13% from last year, the fastest since 2013. But speed varies wildly state-to-state. Louisiana still takes years (over 3,400 days on average), while Texas wraps things up in just five months.
Zoom in closer, and the second quarter of 2026 also brought bad news for Florida. Alongside South Carolina and Delaware, Florida again ranked among the worst states for foreclosures. In Lakeland, one in every 421 homes was under foreclosure, the highest among large metros. Cape Coral and Jacksonville aren’t far behind.
June 2026 capped this gloomy trend: Nationwide, one in every 3,656 properties had a foreclosure filing that month. Florida led all states, followed by South Carolina, Indiana, Nevada, and Illinois. Foreclosure starts in June were up sharply (20%) versus a year ago, and completed foreclosures rose 23% from last June.
In short, while the national foreclosure rate is climbing back toward its old pace, Florida, especially Southwest Florida, stands out as one of the hardest-hit regions. Spiraling insurance costs and economic pressures aren’t letting up, and homeowners are feeling the squeeze.
(Source: ATTOM Mid-Year 2026 U.S. Foreclosure Market Report)
