This figure doesn’t even begin to reflect the actual number of foreclosable properties.
In Florida, there is often a 2-year lag between when the homeowner stops paying the mortgage and when the bank files the first piece of paper. The banks do not want the properties. They know they cannot sell them. They are looking the other way and letting homeowners stay in them for free. For years.
If every mortgage that is actually in default were counted as a foreclosure, the number would be way beyond 3.5M.
You are 100% correct ,, in my upper middle class subdivision (central Florida) there are dozens of properties (out of about 500 total) that could be forclosed upon but are being ignored by the banks ,, they can’t afford to take the hit to capital.