Foreclosures are unfortunately increasing in the United States, and the pressure on community associations is real.
In the first quarter of 2025 alone, 68,794 U.S. properties entered the foreclosure process, a 14% jump from the previous quarter and 2% higher than this time last year.
States that had 100 or more foreclosures starts in Q1 2025 and saw the greatest annual increase included:
- Kansas (up 117%)
- Delaware (up 58%)
- Oklahoma (up 45%)
- Utah (up 42%)
- Wyoming (up 33%)
Those major metros with a population of 200,000 or more that had the greatest number of foreclosures starts in Q1 2025 included:
- Chicago, IL (3,789 foreclosure starts)
- New York, NY (3,566 foreclosure starts)
- Houston, TX (3,046 foreclosure starts)
- Miami, FL (2,028 foreclosure starts)
- Philadelphia, PA (1,985 foreclosure starts).
Overall, the states with the highest increases in foreclosures include Delaware, Illinois, and Nevada.
In addition, Florida is now ranked among the top five states with the highest foreclosure rates in the country. While the headlines point to a number of contributing factors – soaring insurance costs, rising inflation, and tightening reserve requirements – there’s one cause that’s hitting homeowners particularly hard: skyrocketing HOA dues.
These numbers are more than stats; they’re a warning. As economic pressure builds, the communities that haven’t modernized their collections process are most at risk. Foreclosures are sometimes inevitable, but we should do what we can to avoid them. The question is: are you prepared to prevent delinquencies from becoming foreclosures?
As costs climb, so do delinquencies. But as Gar Liebler, Founder of TechCollect, points out, the real issue isn’t just that homeowners are falling behind, but that too many management companies still haven’t implemented the right AR workflows to prevent it.
“Florida foreclosures are up, in part, because of skyrocketing HOA dues. This is not a surprise, given the impact of insurance rates, reserve requirements, and inflation. What is surprising is the number of managers that have not implemented best practices in their AR workflow and collection process.”
— Gar Liebler, CMCA, Founder of TechCollect
The Opportunity to Get Ahead
The truth is, management companies face more financial complexity than ever before. But the tools to manage it are already here.
Management companies using TechCollect are not only keeping up; they’re outperforming their peers with:
- Higher AR recovery
- Faster recovery times and increased, automated communications
- Fewer legal escalations
And when legal involvement is necessary, TechCollect works seamlessly with the HOA/COA legal experts at Equity Experts, ensuring frictionless escalation, minimal legal fees, and no carrying costs for the association.
“The first month of using this technology solution was easily a 100% improvement in revenue versus our previous approach to AR and delinquencies.”
— Matt Kopchak, CMCA, AMS, PCAM, Chief Operating Officer of WRMC, AAMC
Boards Are Paying Attention
Savvy HOA/COA Boards are no longer tolerating outdated collections strategies that delay cash flow and strain relationships. They’re asking for smarter solutions that protect their communities financially while supporting homeowners with clear communication and flexible engagement.
Some management companies are falling behind. Others are gaining market share. The difference? A modern, scalable AR recovery process that’s built for today’s financial environment.
Don’t wait until rising delinquency becomes unmanageable.
Book a demo with TechCollect and see how leading management companies are recovering more without escalating to legal action.
