Number of Florida Foreclosures Still Increasing
As of the end of 2006, Florida foreclosures rate remains high compared to 2005’s rate. Among the counties, which experienced a considerable increase, are Hillsborough, Pasco and Pinellas. The Mortgage Bankers Association of Florida is also blaming the relaxed lending guidelines that were practiced during the housing boom of 2003-2005.
They said that many lenders had difficulty saying “no” to buyers who were very eager to purchase properties even under an adjustable rate mortgage loan. What these lenders failed to realize is that these buyers would be trapped when these ARMs re-set.
And this is what is expected in 2007, when most of the subprime loans will be re-setting. Currently, there are several kinds of Florida houses foreclosure situations, which these homeowners face. Some have a chance to cure mortgage default while many would be left homeless and with a foreclosure record on their credit history.
A significant proportion of these owners facing Florida foreclosures will have difficulty selling their homes since their property is worth less than their mortgage debt. Even if they do find a buyer for their home, the sales proceed would still be insufficient to cover the amount of money they owed. They could enlist the aid of a reliable real estate broker like ForeclosureConnections and try to arrange a “short sale”. Real estate brokers can negotiate terms with the banks and provide much needed exposure to attract more potential buyers.
On the other hand, most of these Florida foreclosure properties were bought during the housing boom two or three years ago and so, these homes would require only minor repairs. This is certainly good news for the buyers, especially those thinking of renting out the property or re-selling. Even without considerable discounts, they would save on costly repair costs if they do decide to purchase properties much older than these Florida foreclosures.
