Florida Foreclosure Filings Up 50 Percent From Last Month; Colorado Leads Pack
Home prices across Florida are declining, and some adjustable rate mortgages have reset due to higher interest rates. This can be a deadly combination of forces for homeowners around the state, as evidenced by the number of homes being foreclosed upon by mortgage lenders.
It’s hardly a situation unique to the Florida mortgage landscape. According to RealtyTrac, foreclosures throughout the U.S. ramped up significantly in August with more than 115,000 properties nationwide entering some stage of foreclosure.
This could be the beginning of an alarming trend, with 24 percent more foreclosures seen in August than there were in July and nearly 53 percent more than there were in August of 2005. Currently, there is a national rate of one new foreclosure filing for every 1,003 homes.
“With home price appreciation continuing to decelerate and billions of dollars in adjustable rate mortgages projected to reset in the next few months, this month’s increase could be the beginning of an upward shift in the foreclosures market,” says James J. Saccacio, CEO of RealtyTrac.
COLORADO, not Florida, wins the prize for the highest state foreclosure rate for the sixth month in a row, with one new filing for every 301 households. The state reported 6,079 properties entering some stage of foreclosure during the month, more than twice the number reported in August 2005 and the seventh highest number reported by any state.
While not the highest in the U.S., Florida foreclosures jumped to their highest level so far this year, with 16,533 properties entering some stage of foreclosure in August, the most of any state and an increase of more than 50 percent from the previous month. The state’s foreclosure rate of one new foreclosure filing for every 442 households ranked as the nation’s third highest.
Other states reporting foreclosure rates among the nation’s 10 highest were Georgia, Texas, Michigan, Ohio, Illinois, Indiana and Utah.
While the statistics are scary, there are alternatives worth exploring if you find yourself in the unwanted position of facing a foreclosure on your Florida home loan. Indeed, if you have missed a payment, don’t wait for your lender to contact you. Rather, call your lender to let them know about your situation and ask for advice.
Many lenders offer a hardship assistance program to qualifying customers who have suffered an illness, unemployment, divorce, death in the family, etc. A lender may be able to offer a restructured payment plan or even a plan for Florida home mortgage refinancing. Depending on your situation, some may even provide for a temporary reduction or suspension of your payments. But don’t let the situation worsen by waiting!
You may qualify for this if you have recently experienced a reduction in income or an increase in living expenses, but you must be able to show that you would be able to meet requirements of the new payment plan. Worse case scenario, if your home must be sold, ask your lender for some time so you can sell it yourself.
If you reach an agreement with the lender, make sure you get it in writing, and be sure you have it reviewed by a real estate attorney. Be cautious if you enter into any agreement with a third party, as there are plenty of scams out there. If you take a step back and explore your options without having a panic attack, you can get through this.
