Foreclosures Just Spiked — Especially in These Retirement Havens

Popular retirement destinations are experiencing disproportionately high foreclosure rates, according to the latest market report from property data provider Attom.

Three of the top four states for foreclosures during July are places that traditionally have attracted a lot of retirees seeking favorable climates and lower living costs.

Nevada topped the nation with the highest foreclosure filing rate. Florida finished in second place and South Carolina ended up fourth.

Here are the five states with the highest foreclosure rates in July:

1. Nevada: 1 in every 2,326 homes had a foreclosure filing
2. Florida: 1 in every 2,420 homes
3. Maryland: 1 in every 2,566 homes
4. South Carolina: 1 in every 2,588 homes
5. Illinois: 1 in every 2,727 homes

The data becomes even more striking when examining raw foreclosure numbers. Texas led the country in total foreclosure starts, meaning lenders started the foreclosure process on the largest number of homes in that state. Florida again ranked second nationally.

Attom says these are the states with the most foreclosure starts in July:

1. Texas: 3,600 foreclosure starts
2. Florida: 2,891 foreclosure starts
3. California: 2,830 foreclosure starts
4. Illinois: 1,177 foreclosure starts
5. Ohio: 1,029 foreclosure starts

Florida’s appearance in both top categories is particularly noteworthy, as the state has long marketed itself as a retiree haven with no state income tax and year-round warm weather. The state’s dual ranking might suggest that even traditionally attractive markets are not immune to broader economic pressures affecting homeowners.

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Here are the metro areas with populations of between 500,000 and 1 million that had the highest foreclosure rates in July:

1. Bakersfield, CA: 1 in every 1,538 homes had a foreclosure filing
2. Cape Coral, FL: 1 in every 1,735 homes
3. Lakeland, FL: 1 in every 1,802 homes
4. Columbia, SC: 1 in every 1,803 homes
5. Deltona, FL: 1 in every 1,818 homes

In addition, these are the metro areas with populations exceeding 1 million that had the highest foreclosure rates in July:

1. Houston, TX: 1 in every 1,882 homes had a foreclosure filing
2. Jacksonville, FL: 1 in every 1,893 homes
3. Las Vegas, NV: 1 in every 1,914 homes
4. Riverside, CA: 1 in every 1,921 homes
5. Cleveland, OH: 1 in every 2,030 homes

While these states continue to attract new residents with their appealing lifestyles and tax advantages, the foreclosure data suggests that not all homeowners are able to maintain their financial footing.