First Quarter Foreclosure Rates Rise; Consider Refinancing Your Florida Home Loan

Ouch.

Most likely due to the constant rise of interest rates and the negative effects they have on adjustable Florida home loans, foreclosures around the nation increased by 38 percent in this year’s first quarter. This number is based on the 2006 Q1 U.S. Foreclosure Market Report, released by RealtyTrac.

The number of foreclosed homes also shot up by 72 percent from this time last year, as the quaterly foreclosuer rate now stands at one in ever 358 U.S. households.

“The sharp increase in foreclosures in Q1 continues a steady upward trend that we’ve observed since the beginning of last year,” said James J. Saccacio, chief executive officer of RealtyTrac. “Foreclosures have now increased in four consecutive quarters and are on track to go above 1.2 million in 2006.”

Saccacio noted that foreclosures actually dipped 13 percent from February to March, evidence that the nation’s foreclosure rate could be leveling off after the long increase.

Georgia, Colorado and Indiana posted the highest quarterly foreclosure rates. Other states ranking in the top 10 included:

• Nevada
• Michigan
• Texas, Ohio
• Tennessee
• Utah
• Florida

The RealtyTrac 2006 U.S. Foreclosure Market Report provides the total number of homes entering some stage of foreclosure nationwide and by state for each month. RealtyTrac’s report includes properties in all three phases of foreclosure:

1. Pre-foreclosures - Notice of Default (NOD) and Lis Pendens
2. Foreclosures - Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS)
3. Real Estate Owned, or REO properties (that have been re-purchased by a bank)

How can you avoid such an unpleasant fate on your Florida home loan? Be wary of its “danger years” and be sure to refinance based on the state of interest rates.