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Florida Mortgage Foreclosures: An Equal Opportunity Crisis

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Florida Mortgage Foreclosures: An Equal Opportunity Crisis 

Florida MortgageFlorida mortgage foreclosures are still big news.  They have been for some time.

In 2009, Florida homeowners experienced one of the worst foreclosure rates in the entire nation. The burst of the housing bubble left many neighborhoods with more foreclosure signs than street signs.

Many analysts predicted that the worst was over, but in 2010, they were proven wrong. Florida’s 18 percent foreclosure rate was the second highest in the country, behind only Nevada.

Surely things had to begin improving soon, right? In fact, the slide continued. In 2011, 25 percent of the foreclosures in the country happened in Florida. December 2011 saw the states foreclosure average balloon to 1 in every 360 homes.

Florida Mortgage Foreclosures vs. the National Average

The national foreclosure average was about 1 in 634 homeowners.

The bad news seems to be pretty well spread out among Gulf Coast counties and inland areas. Manatee County’s foreclosure rate was 1 in 212 while North Port came in at 1 in 151, Riverview came in at 1in 150 and Lehigh Acres reached the incredible rate of 1 in 96.

One of the most surprising facets of the Florida mortgage foreclosure crisis has been it’s lack of prejudice based on socioeconomic status. The super-rich areas of Fisher Island and Rosemary Beach led a recent Forbes study looking into the foreclosure rates in the state. Fisher Island had the number one spot with a foreclosure rate of 20.5 percent and Rosemary Beach had a rate of 9.9 percent.

Somehow Collier County, which is home to the popular tourist destination Naples, has recently been able to withstand the hurricane of foreclosures that has blown through the rest of the state. The county has remained stable in the recent months, partly because it experienced a mass exodus of homeowners early on in the recession.

As of March 2011, nearly a third of the county’s homes were vacant.

Many analysts believe the nation will begin recovering from the crisis in the next 3-4 years and point to the declining level of late loans as evidence that things are on the mend. Florida however, is expected to experience a slow recovery from the foreclosures because of its high number of delinquent Florida mortgage loans and foreclosures.

About the Author

Ryan is a guest blogger who writes about real estate in Austin, Texas

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Florida Accounts for Nearly 7 Percent of Nation’s Foreclosures

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Florida Foreclosures - 7 percent of nation's totalsFlorida still accounts for nearly 7 percent of the nation’s foreclosures. However, foreclosure activity continues to drop nationwide.

Based on data from foreclosure-tracking firm RealtyTrac, foreclosure filings nationwide fell below 220,000 in April 2011, a 9 percent decrease from March.

A “foreclosure filing” is defined as any foreclosure-related action including Notice of Default, Scheduled Auction, or Bank Repossession.

April marks the seventh straight month in which foreclosure filings have dropped and total filings are down more than one-third year-over-year.

One reason why filings are down is that banks are letting more time pass between delinquency and foreclosure, exploring alternative courses of actions such as short sales and loan modifications. It now takes, on average, 400 days from an initial default notice to bank repossession.

That’s more than double the 151-day average of early-2007.

Another reason may be that job growth is returning to the U.S. and job creation is associated with fewer home loan defaults.

Regardless, in the states in which foreclosures are occurring, bank repossessions are concentrating among just a few.

5 states accounted for half of the country’s April REO:

  • California : 19.8 percent
  • Arizona : 9.5 percent
  • Michigan : 7.5 percent
  • Florida : 6.7 percent
  • Texas : 5.6 percent

Collectively, these 5 states represent just 32 percent of the nation’s population.

On the other end of the chart, Vermont accounted for a measly 0.007% of April’s foreclosure filings.

If you’re a first-time home buyer considering foreclosed homes in Lakeland , or a seasoned investor adding to your portfolio, the good news is that foreclosures are selling at steep, 20 percent discounts relative to non-distressed homes. Just make you know what you’re buying. Foreclosure purchases carry different risks and follow different procedures than “traditional” sales.

Rely on a seasoned real estate agent to navigate the deal.

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