Orlando, Florida, Sees an Increase in Foreclosures

By Elias DaSilva | September 13, 2024.

A recent analysis highlights a concerning trend: foreclosure listings in the city of Orlando are on the rise, now ranking sixth among U.S. cities experiencing an increase in foreclosures. The study reveals that Orlando recorded 5.1 foreclosures for every 10,000 housing units in June. Experts in Central Florida predict this trend will worsen.

Ray López, a real estate professional with a decade of experience, finds motivation in the joy of handing over the keys to new homeowners. “It’s everything,” said López, who works as the Chief Operating Officer at Keller Williams. As a broker, he constantly monitors market statistics and has noticed the increase that is causing concern. “There is a noticeable uptick in foreclosures,” López noted.

He attributes this increase to the expiration of foreclosure moratoriums that were in place since the pandemic. “When it’s mentioned that foreclosures have increased, it means a jump from almost zero to about 185% more, and year over year, this rises by 13%, but still below pre-pandemic numbers,” López explained. He also pointed out that many homeowners are struggling with unaffordable mortgages now that foreclosure protections have ended.

“In the last two years, during the buying frenzy, people were purchasing homes at the maximum of their capacity,” López said. While he discourages panic, noting that current figures are far from the levels of the 2008 housing crisis, he acknowledges that the situation could get worse before it gets better.

For those potentially facing foreclosure this year, López recommends contacting a bank or a real estate agent to inquire about home equity. “If you don’t make the payments and the foreclosure goes through, the bank keeps all the equity,” López explained. “Selling the house allows you to take advantage of that equity and move on with your life.”