Florida Foreclosures Rise - But By How Much?
We know a couple things for sure: foreclosures around the country are at a significant high … and the same can be said about those in Florida. It’s just not clear how big a problem we have in the Sunshine State.
For instance RealtyTrac - a provider of real estate data - reported Wednesday that foreclosure activity in Florida jumped to its highest level this year, with 16,533 properties facing default in August, 50 percent more than the previous month.
The Broward County housing market ranked third in the nation among major metropolitan areas for the most homes entering some stage of foreclosure - one for every 174 households, the company said.
Meanwhole, Miami-Dade also ranked in the top five, with one new foreclosure filing for every 195 households. A major reason for this influx? The rate increase on sub-prime Florida home loans.
More foreclosure reasons
South Florida homeowners for months have felt the crush of rising insurance premiums, gas prices and interest rates, among other inflationary pressures, so it’s not surprising they’d be having trouble making their Florida home mortgage payments.
However, consider this data from Foreclosure.com:
The Boca Raton-based company reported just 290 foreclosures statewide for August. In Broward, just 13. On nationwide statistics, the companies diverged even further.
What accounts for these differences? The ways one can count foreclosures, a usually lengthy process in which the lender takes legal action to gain title to a property when an owner has missed several Florida mortgage loan payments.
Foreclosure.com counts only homes in the last stages of foreclosure, when a lender has taken possession after failing to sell it at auction. RealtyTrac, conversely, includes in its data so-called pre-foreclosures - when a lender files its intention to foreclose at the courthouse. These often are resolved before a homeowner loses the property.
”There is definitely a slowing in the economy, but foreclosure rates really haven’t jumped that high in the state of Florida,” said Brad Geisen, CEO of Foreclosure.com.
Florida real estate has surged in value over the last several years. While prices may be settling, many homeowners have built significant equity in their homes, enough to be able to refinance or pay off their mortgages by selling, Geisen said.
This also has a bearing on future buyers. If you’re trying to find a bargain, foreclosed properties may give you the best bang for your Florida home loan buck.
