Florida’s Pre-Foreclosure Numbers Decline in May 2025, But Economic Pressure Remains High

Behind the Drop in Pre-Foreclosures Lies a Story of Struggling Homeowners

In May 2025, Florida recorded 2,919 pre-foreclosure filings—a number that signals both progress and peril. On paper, it marks a notable 19.3% decline from the previous month, when filings reached 3,618. Compared to this time last year, it’s down 11.7%, continuing a trend of short-term improvements.

And yet, those data points only tell part of the story.

For families like the Rodriguezes in Kissimmee, the downward trend is little comfort. Maria Rodriguez, a 41-year-old mother of three, recently received a notice of default on her modest three-bedroom home. Her husband, a former warehouse worker, was laid off earlier this year after the company outsourced its operations to Georgia, and she’s been piecing together part-time jobs to keep the lights on.

“We’re not lazy. We’re not reckless,” she said, her voice breaking over a kitchen table cluttered with overdue utility bills. “We just fell behind one month, and now it’s like the walls are closing in.”

Their story reflects the slow, insidious pathways into pre-foreclosure—a phase in which homeowners fall behind on their mortgage payments but haven’t yet lost their homes. While the statewide numbers seem to offer a glimmer of optimism, what’s rarely seen are the financial tightropes families walk just to make it into next month.

A Historic Lens: Where We’ve Been, and What the Numbers Say Now

The long arc of Florida’s housing crisis offers some perspective. In 2009, at the height of the foreclosure crisis, the state logged an overwhelming 358,337 pre-foreclosures—nearly 100 times this May’s figure. That era was marked by a tsunami of subprime loans, job losses, and policy confusion.

What followed was a decade of gradual recovery. By 2019, Florida saw a more manageable 60,370 pre-foreclosures, cutting crisis levels by over 80%. Then the pandemic struck—and with it, a temporary reprieve, thanks to federal and state moratoriums. Pre-foreclosures plummeted to just 23,063 in 2021, prompting speculation that the housing market might remain resilient.

But resilience can be fragile.

After pandemic-era protections were lifted, the numbers climbed again, to 86,210 in 2023. Much of that spike stemmed from accumulated debt, stagnant wages, and the return of monthly mortgage obligations. It reflected a deeper reality: Beneath Florida’s sun-drenched skyline lies a state where wage growth has failed to keep pace with housing costs, and where inflation has quietly eroded economic security.

This year, the numbers appear more subdued. From January to May 2025, Florida recorded 10,336 pre-foreclosure filings—running behind the 42,638 recorded in the same timeframe last year. That’s a promising trend, but it’s no guarantee of stability.

What’s Driving the Numbers?

Much of Florida’s housing pressure today is the result of complex, national headwinds.

Persistent inflation—though slightly cooled from its 2022 peak—continues to drive up the cost of essentials like groceries, gas, and healthcare. Meanwhile, wage increases have been inconsistent. Unemployment ticked up in some regions this spring as employers trimmed payrolls amid fears of a broader economic slowdown.

Then there’s housing affordability or lack thereof. According to housing advocates, more than half of Florida’s renters now spend 30% or more of their income on housing—a ratio that leaves little buffer for emergencies. For homeowners toeing the line between survival and delinquency, a single missed paycheck or medical bill can transform a mortgage into a time bomb.

Franklin Johnson, a housing counselor with a non-profit in Miami, says the face of pre-foreclosure has changed since the subprime era.

“Back then, it was often exotic loans and speculation gone wrong,” he said. “Now it’s nurses, teachers, warehouse workers—the backbone of the state—who are just barely keeping up.”

Personal Costs Behind the Percentages

The Rodriguezes are hardly alone. In fact, social services in parts of Central and South Florida report a flood of new clients facing pre-foreclosure scenarios. Many are first-time homeowners who stretched to afford entry-level homes when interest rates were historically low. Now, facing ballooning insurance rates and mounting utility costs, they’re facing impossible arithmetic each month.

“We never thought it would come to this,” said James Holloway, a retired Navy veteran in Fort Lauderdale who bought his house in 2016. An emergency surgery earlier this year wiped out his savings. Now, his fixed income is no longer enough. His servicer has started sending letters.

“I gave everything for this country,” he said. “All I want is to stay in my home.”

The emotional toll is palpable. For homeowners on the brink, pre-foreclosure represents more than lost equity; it’s a loss of stability, identity, and the safety net once assumed in homeownership.