10.12.2026 PropStream
Disclaimer: Pre-foreclosure data is dynamic and subject to change as property and foreclosure records are updated. The figures in this report reflect PropStream data available at the time of report creation and may differ from current results.
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Quick Answer: According to PropStream data, Florida, New York, and Illinois have the most pre-foreclosure homes, with Florida leading at 69,543 properties. |
For real estate professionals, pre-foreclosure properties offer a unique opportunity to help struggling homeowners and secure off-market deals (or listings).
In this article, we’ve compiled a list of U.S. states with the highest number of foreclosures to reveal markets worth exploring further. Then, we walk through how to find and research pre-foreclosure properties with PropStream.
Key Takeaways:
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What Is a Pre-Foreclosure Property?
A pre-foreclosure property is one where the homeowner has defaulted on their mortgage but hasn’t (yet) lost their home to foreclosure. Typically, this means they haven’t made their monthly payment for three consecutive months and have received an official notice of default.
If the mortgage debt remains unpaid, the home may be foreclosed on, damaging the owner’s credit and jeopardizing their equity. As a result, many pre-foreclosure owners are highly motivated to sell. It can protect their credit and equity and provide funds to finance a more affordable home.
Pre-Foreclosure vs. Foreclosure
Though related, pre-foreclosure is not to be confused with foreclosure itself.
Pre-foreclosure refers to the period between when a homeowner first defaults on their mortgage (usually after 3 consecutive months of missed payments) and when their home is foreclosed. By contrast, foreclosure is when the lender actually seizes the property.
States With the Highest Number of Pre-Foreclosures
Here are the states with the highest number of foreclosure properties:
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Rank |
State |
Pre-Foreclosures |
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1 |
Florida |
69,543 |
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2 |
New York |
41,665 |
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3 |
Illinois |
27,205 |
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4 |
California |
19,210 |
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5 |
New Jersey |
17,188 |
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6 |
Ohio |
16,723 |
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7 |
Texas |
12,798 |
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8 |
Indiana |
9,755 |
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9 |
North Carolina |
9,502 |
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10 |
Pennsylvania |
8,766 |
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11 |
South Carolina |
7,361 |
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12 |
Maryland |
7,271 |
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13 |
Nevada |
6,915 |
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14 |
Oklahoma |
5,333 |
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15 |
Wisconsin |
5,209 |
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16 |
Michigan |
5,006 |
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17 |
Massachusetts |
4,586 |
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18 |
Connecticut |
4,500 |
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19 |
Minnesota |
4,367 |
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20 |
Colorado |
4,200 |
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21 |
Kentucky |
4,122 |
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22 |
Georgia |
3,394 |
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23 |
Arizona |
2,973 |
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24 |
New Mexico |
2,375 |
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25 |
Washington |
2,319 |
What’s Driving Higher Pre-Foreclosure Numbers?
While foreclosure trends and causes vary by state, an increase in foreclosures nationwide can be attributed to the market normalizing after COVID-19-related foreclosure moratoriums kept foreclosure rates artificially low.
Now that those moratoriums have been lifted, foreclosure activity is edging closer to pre-pandemic levels. In other words, it’s not that foreclosures are high. Rather, they are high compared to the historic lows of the early 2020s.
Meanwhile, higher levels of pre-foreclosure specifically could be attributed to:
- Rising costs of living
- Job losses
- Other financial strains
How to Search for Pre-Foreclosures in Any State With PropStream
To find pre-foreclosure leads in your state is easy with PropStream. The platform has a dedicated pre-foreclosure search filter (and lead list) that you can activate in multiple ways.
First, you can apply the pre-foreclosure search filter to your property search from a dedicated dropdown menu within PropStream. This is the traditional way of applying filters.
Alternatively, PropStream’s new AI Search feature lets you type or voice your search criteria in natural language. For example, you can type or say, “Find pre-foreclosure properties in Seattle.” The platform will then surface all the pre-foreclosure leads in that market.
You can also get more granular with your search by stacking additional filters. For example, you could type or say, “Find pre-foreclosure properties in Seattle’s Fremont neighborhood with high equity and senior owners.”
The narrower your search, the more motivated the leads tend to be.
How to Research Pre-Foreclosure Properties With PropStream
After generating a list of pre-foreclosure leads, you can then dive deeper into each lead with the PropStream Intelligence (PSI) Assistant. Instead of scouring through all the data on the property page, you can simply ask the PSI chatbot what you want to know in natural language.
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For example, you could ask:
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Approaching Pre-Foreclosure Homeowners With Empathy
That said, many homeowners in pre-foreclosure are stressed and going through a financially and emotionally challenging time. As a real estate agent or investor, you should be sensitive in how you approach them as a result.
This means showing empathy and listening to the prospects' concerns and feelings before making an offer to buy their home. After all, a home can be hard to part with even if the owner wants to and agrees it’s in their best interest.
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Here’s a sample script you can follow when cold calling a pre-foreclosure lead: “Hi, is this [Their Name]? My name is [Your Name], and I’m a local [real estate agent/investor] with [Company]. I hope I’m not contacting you at a bad time. I’m reaching out because I noticed your home at [Street Name] may be facing a difficult situation with your mortgage, and I wanted to see if there’s any way I can help. Would you be open to a quick conversation about your options? Sometimes just talking through the situation can make things feel a little less overwhelming. [Pause and listen. Let them share as much or as little as they want.] Thanks for sharing that. Whatever you decide, my goal is to make sure you have all the information you need to make an informed choice. If selling turns out to be the answer, I can walk you through how that might protect your credit and equity. If not, I’m happy to point you toward other resources. Would it be okay if I followed up with you [tomorrow/later this week] to answer any questions?” |
Pro Tip: Upload custom pre-foreclosure scripts into BatchDialer so you can follow along while you make multiple cold calls back-to-back.
Find Your Next Pre-Foreclosure Lead with PropStream for Free
Ready to find your next pre-foreclosure lead? PropStream it!
Our platform has over 41 million pre-foreclosures nationwide. A quick search could surface multiple pre-foreclosure leads in your backyard.
From there, you could skip trace their contact information and launch a dialing, email, or direct mail campaign directly within the platform.*
*PropStream engages an independent third-party to perform skip tracing.
