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Foreclosure Starts are Up 19%—These Counties are Seeing the Highest Distress


Foreclosure activity doesn’t end quietly—and December 2025 proved that point emphatically.

After a relatively mixed fall, Foreclosure Starts jumped sharply nationwide, rising nearly 19% month over month and more than 44% year over year. 

That acceleration at the very front of the foreclosure pipeline matters because Starts represent the earliest public signal of homeowner distress—well before properties reach auction or become bank-owned. 

For real estate investors, Foreclosure Starts are often the first place where opportunity begins to form. They highlight where financial pressure is building, where motivated sellers may soon emerge, and where future auction and REO inventory is likely to materialize in the months ahead.

December’s data tells a clear story: Distress reaccelerated heading into year-end, with especially sharp increases in several key states and counties that investors should be watching closely as we go deeper into 2026.

National Foreclosure Starts Rebound Strongly

In December 2025, the U.S. recorded 27,640 Foreclosure Starts, representing:

  • +18.94% month over month
  • +44.66% year over year

This was one of the strongest monthly increases in early-stage filings we’ve seen in 2025. While foreclosure activity often slows toward the end of the year, December broke that seasonal pattern decisively.

The year-over-year growth is especially notable. Compared to December 2024, Foreclosure Starts are nearly 45% higher nationwide, reinforcing that financial strain remains elevated for a growing number of households despite a resilient labor market.

State-Level Breakdown: Five Markets Driving the Increase

Florida

Florida continues to be one of the most active foreclosure states in the country. December’s increase followed November’s pullback, signaling that early-stage distress remains persistent rather than temporary.

  • 3,274 Starts
  • +16.14% MoM
  • +81.39% YoY

California

California saw a meaningful monthly rebound but remains essentially flat year over year. This suggests short-term volatility rather than a structural acceleration—at least for now.

  • 2,389 Starts
  • +14.31% MoM
  • -0.21% YoY

Ohio

Ohio posted one of the strongest month-over-month increases among major states, reinforcing its role as a steady but growing foreclosure market.

  • 1,060 Starts
  • +24.12% MoM
  • +14.10% YoY

North Carolina

North Carolina was the notable exception. Starts fell sharply in December, suggesting that much of the state’s distress has already moved further down the pipeline into auctions.

  • 337 Starts
  • -35.81% MoM
  • -3.44% YoY

Texas

Texas delivered the most dramatic increase of any state in December. Starts surged more than 57% month over month and nearly 60% year over year—an unmistakable signal that early-stage distress is accelerating rapidly.

  • 4,104 Starts
  • +57.12% MoM
  • +58.09% YoY

County-Level Insights: Where New Distress Is Emerging

State-level averages only tell part of the story. When we drill down to the county level, we can see where Foreclosure Starts are meaningfully rising—and where future opportunities may develop.

Florida: Central and Gulf Coast pressure builds

Despite Florida’s statewide growth in Foreclosure Starts, the increases were not evenly distributed.

  • Lee County recorded a meaningful jump in Starts, continuing its pattern of elevated distress along the Gulf Coast.
  • Orange County (Orlando) also saw a noticeable increase, reflecting growing pressure in investor-heavy neighborhoods.
  • Miami-Dade and Broward Counties remained elevated but showed less acceleration than earlier in the year.

Investor takeaway

Florida’s distress is broadening geographically, not contracting. Central Florida and Gulf Coast markets are likely to feed auction activity in early 2026.

California: Inland Empire reawakens

California’s December rebound was driven primarily by inland markets.

  • Riverside County posted a clear month-over-month increase in Starts.
  • San Bernardino County followed a similar pattern, particularly in areas dominated by investor-owned rentals.
  • Los Angeles County showed modest growth but remained relatively stable.

Investor takeaway

The Inland Empire continues to act as California’s foreclosure pressure valve. Investors focused on early outreach should monitor Riverside and San Bernardino closely.

Ohio: Columbus emerges as a standout

Ohio’s December increase was heavily influenced by:

  • Franklin County (Columbus), which saw one of the strongest MoM increases in the state.
  • Cuyahoga County (Cleveland) rebounded after a softer November.
  • Hamilton County (Cincinnati) remained steady.

Investor takeaway

Columbus continues to outperform other Ohio metros in early-stage distress, making it a key market to watch in 2026.

North Carolina: Starts cool as auctions take over

North Carolina’s drop in starts was driven by:

  • Mecklenburg County (Charlotte) and Wake County (Raleigh) both showed reduced early-stage filings.
  • This aligns with the sharp rise in Notice of Sale activity seen elsewhere in the state.

Investor takeaway

North Carolina’s foreclosure pressure has not disappeared—it has simply moved downstream into auctions.

Texas: A surge that demands attention

Texas’ spike was widespread and powerful.

  • Harris County (Houston) accounted for a large share of the increase.
  • Dallas and Tarrant Counties also posted sharp gains.
  • Bexar County (San Antonio) continued its steady upward trend.

Investor takeaway

Texas’ fast, nonjudicial foreclosure process means today’s Starts can become auctions in a matter of weeks. December’s surge is likely to translate quickly into a visible opportunity.

How Investors May Use Foreclosure Start Data

Foreclosure Starts are not just statistics—they are signals. Investors may use this data to:

  1. Identify pre-foreclosure outreach opportunities before auctions are scheduled.
  2. Anticipate future Notice of Sale and REO inventory months in advance.
  3. Focus marketing and acquisition efforts on counties where Starts are accelerating.
  4. Plan retirement-account investments using a Self-Directed IRA or Solo 401(k), where early-stage timelines allow for proper structuring, financing, and due diligence.

By tracking Starts alongside later-stage filings, investors can build a more complete, forward-looking strategy rather than reacting after inventory hits the open market.

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Sam Bankman-Fried is waging a campaign for a pardon—but Trump will not grant one, says White House



Convicted crypto fraudster Sam Bankman-Fried used to be a prolific donor to the Democratic Party, but these days his public statements have taken on a decidedly MAGA tone. “Clinton-appointed Judge Lewis Kaplan made his political bias very clear when sentencing me,” reads a recent screed on X. “I admire @realDonaldTrump for standing up to this ‘partisan and out of control activist’!”

This is just one of dozens of tweets railing about the deep state and other MAGA villains that Bankman-Fried, one of the century’s most notorious financial criminals, has published in recent weeks despite being locked up for 25 years in federal prison.

Though Bankman-Fried has not stated so explicitly, the goal of his social media spree is clear: persuade President Donald Trump to spring him from federal prison. The strategy makes sense given that Trump has been dispensing pardons to several high-profile figures convicted of financial crimes, including Binance founder and onetime Bankman-Fried archrival, Changpeng Zhao.

Alas for Bankman-Fried, his petitions to Trump for mercy appear to be in vain. In response to a request for comment about the recent social media campaign, a White House spokesperson reiterated to Fortune that Trump has no intention of pardoning Bankman-Fried. 

In an email, the spokesperson referred Fortune to comments by Trump in January, where the president stated that he did not plan to pardon Bankman-Fried, along with a number of other prominent inmates including former New Jersey senator Robert Menendez and ousted Venezuelan president Nicolás Maduro. “The President is the ultimate decider on all pardons,” the spokesperson wrote. 

An attorney for Bankman-Fried did not respond to a request for comment. 

Unsuccessful bid

Bankman-Fried was a longtime supporter of progressive causes and is the son of two Stanford law professors who carried considerable influence in the upper echelons of the Democratic Party. But as his fraudulent crypto empire crumbled in November 2022, the crypto founder plotted a rightward shift. In a personal document released as part of the trial, Bankman-Fried wrote that he planned to go on conservative TV host Tucker Carlson’s program and “come out as a Republican.” 

On the surface, the tactic seems plausible, especially in today’s political environment. Trump entered office in January 2025 pledging to roll back the Biden administration’s crackdown on crypto. Under Trump, regulatory agencies have dismissed key cases against blockchain companies, and the Justice Department has undergone a reorganization of its approach to crypto enforcement. 

Still, Bankman-Fried’s reputation as one of the top donors to the Biden administration has limited his appeal to the Trump administration. That, combined with Bankman-Fried’s still villainous status in the crypto industry, has always made his campaign for a pardon a long shot, according to D.C. insiders. That’s even with an unsanctioned appearance on Tucker Carlson last year, which reportedly landed Bankman-Fried in solitary confinement. 

The tough odds haven’t curbed Bankman-Fried’s perseverance, as he is also fighting his conviction in federal appeals court. His X feed is filled with posts, which have been amplified by what critics describe as “sock-puppet” accounts, touting his new conservative bona fides. (In his bio, Bankman-Fried clarifies that he tells a proxy what to write through Bureau of Prisons–approved phone calls and emails.) 

“Dems like censoring ‘misinfo’ on social media,” reads one recent post, before praising Trump’s own platform. “Truth Social & GETTR have always put free speech first.” 

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