National, Florida Foreclosure Rates Climb

The national foreclosure rate increased less than 2 percent from April to May 2006, but is still up 28 percent from May 2005, says a RealtyTrac U.S. Foreclosure Market Report.

Results show a national foreclosure rate of one filing for every 1,247 U.S. households during the month. RealtyTrac publishes a comprehensive database of pre-foreclosure and foreclosure properties with over 600,000 properties and is the foreclosure data provider to many major media sources.

The Florida foreclosure rate, which has been the subject of great speculation as frenzied, investor-fueled buying and adjustable-rate mortgage popularity have seemingly set the table for disaster, increased by more than 6 percent last month. With 8,898 properties entering some state of foreclosure, the Sunshine State has more than every state except Texas.

Meanwhile, Foreclosures.com attributed the rise in delinquencies to a combination of factors, such as rising Florida home loan rates and increasing inventories of unsold homes. A wave of mortgage defaults could follow as demand slows and speculators are washed out of housing markets throughout the Southeastern U.S., experts believe.

“The situation is particularly acute in Florida,” said the company’s president, Alexis McGee, who added that foreclosure filings increased a staggering 42.55 percent in the first quarter of 2006 over the fourth quarter of 2005 as leaner times and rising rates push thousands to the brink of delinquency.

Colorado, Georgia and Texas had the three highest foreclosure rates in May, while Florida ranked eighth. Colorado reported 4,198 properties entering some stage of foreclosure in May, a 13 percent increase from a month ago. As you navigate the home loan market during these difficult times, be sure to choose the right lender — as well as the right Florida home loan product. Avoiding predatory lending is paramount to ensuring long-term viability.