Florida Foreclosure Rate Dips 8 Percent in July

The number of new Florida foreclosure properties declined 8 percent in July, but the rate rose 10 percent nationally last month, according to MSN Money Central.

In a report from Foreclosure.com, the company says its research of court records show that 308 residential foreclosures were filed in Florida last month, down from 336 filed in July 2005. The company’s data showed an increase of slightly under 3 percent compared to the 300 new foreclosures in June. Breakdowns by county were not provided.

Nationally, 28,130 new foreclosures were recorded last month, 10 percent higher than in July 2005 and 5 percent higher than in June 2006.

The decline in new foreclosures in the Sunshine State is due to a resilient Florida housing market, which has withstood the recent rise in home loan rates and cooling of demand for housing better than other states.

“The real estate market has been so strong in Florida over the last few years — and properties appreciated so quickly — that many homeowners in distressed situations were usually able to sell their homes fast and for profit,” Brad Geisen, Foreclosure.com President and CEO.

However, with Florida mortgage costs more than a full percent higher than a year ago, and the market here continuing to slow down, Geisen’s company anticipates many more distressed sales to result in foreclosures.

Nationally, last month’s peak foreclosure total was 86,562, down 3 percent from June. The decline in active foreclosures is attributed to foreclosed properties being purchased in many instances. Locally, last month’s peak for Florida real estate inventory in the foreclosure stage, including new entries to the list, was 803. That was 13 percent lower than 921 in July 2005, but 1 percent higher than 795 in June.

“New residential foreclosures across the nation are up this year, driven, in large part, by increases in adjustable-rate mortgages. That means investors and home buyers — if they haven’t already — will be able to find many great bargains in this segment of the real estate market,” Geisen said.

Almost 35 percent of available foreclosed homes were purchased in July, a 5 percent increase over the first half of 2006. Cleary, investors are savvy when it comes to buying homes in the foreclosure stage, as the prices in South Florida make a bargain like that too good to pass up.

Yesterday, the Federal Reserve called off its two-year, 17-meeting campaign to boost interest rates, at least for the moment. As a result, Florida home loan rates should remain relatively steady, perhaps easing pressure on the many homeowners with adjustable-rate mortgages.