Experts said growth could be playing a role in Lakeland having the most foreclosure activity in 2024 compared to other metropolitan areas of its size.
“It’s not surprising to be honest with you. Lakeland’s the jewel of Polk County. Everyone wants to be in Lakeland and the state of Florida,” said Bob Miller, real estate broker at MillShire Realty.
Miller said Florida’s homeowners insurance crisis is another reason why some people are no longer able to afford their mortgage.
“When those insurance premiums start kicking in, they can’t make the payments they just don’t know what to do so a lot of them, for lack of a better term, they curl up in a little bit of a ball and they wait in a corner for someone to knock on the door. That’s not the best option,” said Miller.
He said due to the influx of population in the Lakeland area, he was not surprised see it top the list of foreclosure activity rates in the country.
According to a study by real estate data company ATTOM, one in every 172 units saw foreclosure activity in 2024.
“A lot of times, the biggest problem is that the homeowner doesn’t communicate with the bank and that’s when things really start to spiral out of control,” said Miller.
“I think insurance premiums are one of the most significant components,” said Gate Arty, principal and co-owner at Keller Williams Realty in Lakeland.
While he agrees on the impact of insurance premiums, Arty said he does not believe Lakeland has a foreclosure problem.
“The market is in a state of flux. When interest rates rise, that’s going to happen but in the grand scheme of things, foreclosure activity, distress sales just aren’t a significant piece of our market right now,” said Arty.
Arty pointed out foreclosure filings do not always result in a foreclosed upon home.
“It’s easy to say that the sky is falling and I just don’t think that’s necessarily the case,” he said. “More houses, more people, more incidences of sales, foreclosures. It’s more of everything.”
According to the ATOMM study, Florida tied with New Jersey for the states with the highest amount of foreclosure activity – 1 in every 267 housing units.
Overall, the study found total foreclosure filings nationwide, which are default notices, scheduled auctions and bank repossessions, decreased 10% in 2024.