REO and distressed property, four counties, one broker.
I've been doing short sales since 1994 and REO since 1998, across Flagler, Volusia, St. Johns and Putnam counties. Below is my free monthly Distressed Market Brief, then how to send me an asset.
October 2026
Where distress is building, and where it's turning into property. Every number is public and sourced below.
"What asset managers should know this month is that REO is not driving anything here. Resale properties are flat with pricing and saturated inventory levels, but the homes that are priced correctly are moving fairly quickly, under 80 days, with the sweet spot at homes that are marketed 30 to 40 days seeing the best returns. New construction is 50% of our local market in Flagler County and very strong in the collar counties, so rate buydowns and warranties are driving buyers there. You need to price your properties right out of the gate."Dave Petkovsek, Real Estate Broker & Instructor · October 2026
of mortgages 90+ days late, 3-month average to December 2025. A year earlier: 0.7%. U.S.: 0.9%.
of mortgages 90+ days late, 3-month average to December 2025. A year earlier: 0.9%. U.S.: 0.9%.
of mortgages 90+ days late, 3-month average to December 2025. A year earlier: 0.3%. U.S.: 0.9%.
Mortgages 90+ days late
Share of mortgages seriously behind, 3-month average, through December 2025. Serious delinquency is the step before foreclosure.
CFPB Mortgage Performance Trends (National Mortgage Database). Putnam County is too small to be published.
Mortgages 30–89 days late
The earlier warning sign, 3-month average, through December 2025.
CFPB Mortgage Performance Trends (National Mortgage Database).
Distressed transfers in public records, 2026 so far
Residential sales the county appraiser coded as bank or lender transfers (foreclosure deeds, deeds in lieu, bank-owned resales), government-agency transfers (HUD, Fannie Mae, Freddie Mac, FDIC) and forced or pre-foreclosure sales. Compared with the same months last year.
| County | Through | Bank & lender | Agency | Forced / pre-foreclosure | Total this year | Same months last year | Change |
|---|---|---|---|---|---|---|---|
| Flagler | August 2026 | 41 | 12 | 1 | 54 | 36 | +50% |
| Volusia | August 2026 | 66 | 184 | 112 | 362 | 269 | +35% |
| St. Johns | August 2026 | 5 | 71 | 11 | 87 | 62 | +40% |
| Putnam | May 2026 | 0 | 18 | 1 | 19 | 25 | -24% |
Each county's appraiser applies these codes in its own way, so compare a county with itself over time, not with another county. Recent months fill in as deeds are recorded; each county stops at its last complete month.
What I do for asset managers
Local knowledge for your portfolio, from first inspection to closing.
REO listing & disposition
Occupancy checks, securing the property, condition reports and photos, vendor coordination, marketing and closing, reported on your platform and schedule.
Broker price opinions
Accurate BPOs with real comparable sales from public records and the MLS, on time, across all four counties.
Short sales
Short sales since 1994: packages, negotiation and closing, with sellers treated with respect through a hard time.
The market behind each county: Flagler · Volusia · St. Johns · Putnam · The Market Desk
Send an asset or request a BPO
This goes straight to me. I'll reply personally, usually the same business day. Please don't include borrower personal information here.
Sources and method
- Late mortgages: Consumer Financial Protection Bureau, Mortgage Performance Trends (National Mortgage Database, a sample of mortgages), county data through December 2025, shown as 3-month averages. Putnam County is too small to be published.
- Distressed transfers: residential parcels (single-family, condo, manufactured), appraiser sale codes 12, 18 and 38, from the Florida Department of Revenue sale files (Volusia, St. Johns, Putnam) and the Flagler County Property Appraiser (Flagler). Multi-parcel sales left out.
- Compiled by Dave Petkovsek, Real Estate Broker & Instructor, Realty Exchange. Updated October 13, 2026. Using these figures? Please credit "FlaglerDave.com".