Florida Foreclosures Back On The Rise
Anyone who has been suffering through these dismal economic times may have been anxiously waiting for something, anything, to happen with their home. Most people involved in the foreclosure mess that is Southwest Florida have been waiting for the banks to pick up where they left off. For a few months, it seemed as if we had a reprieve from default notices being sent and foreclosures being filed. Each month, for the past eight months, the total number of homes in foreclosure decreased rather dramatically. Unfortunately, that trend is over.
According to a Realtytrac report, the number of notices of default that were sent out in the United States increased by 33% in the month of August. August showed the largest number of default notices being sent in the past 9 months. The report is that the number of default notices, and subsequent foreclosure filings, is going to increase throughout the rest of 2011 and during 2012 as well. A default notice indicates to the borrower that they are at least 90 days behind in their mortgage payments and that a foreclosure case may be filed in the near future.
As we are all aware, the Southwest Florida real estate market has taken a major hit and continues to suffer. How does our beautiful area compare with the rest of the country? Nationwide, 1 out of every 570 housing units received a foreclosure filing during August of 2011. Florida ranked #2 for the highest number, just behind California. There were almost 24,000 filings around the entire state, which was a 5% increase from July of 2011. That is 1 in every 376 housing units receiving a notice of foreclosure filing on the property. Those who are optimistic about the economy argue that the number was still 59% below the number of filings one year earlier, in August of 2010. But with an unemployment rate still around 10.7% in Florida, there doesn’t seem to be much to look forward to if the lenders won’t work with the homeowners.
Locally, the break-down is as follows:
Lee County – 1,374 new filings in August of 2011 (1 in every 268 housing units received a notice).
Cape Coral – 436 filings; Fort Myers – 415 filings; Lehigh Acres – 312 filings; and Bonita Springs – 74 filings. The surrounding areas each received less notices.
Charlotte County – 335 new filings in August of 2011 (1 in every 303 housing units received a notice).
Collier County – 326 new filings in August of 2011 (1 in every 596 housing units received a notice).
What this shows us is that nobody is immune to the difficulties the economy has placed on us. We know that it is generally easier to work with a lender if you’re only 30 days behind in payments. Why? Because the amount you’re behind is less. As we have seen, the longer we go without making payments, the more the interest gets to be, the more late fees are applied, and the total arrearages seems insurmountable. There is still hope, though, as we see homes being sold through the short-sale process. This helps the homeowners get their property sold outside of the foreclosure process and helps deal with the deficit owed, if any.
If you are having trouble with your credit card payments, medical bills, or mortgage payments, come see one of the experienced attorneys at Dellutri Law Group. We are focused on making bad situations better and putting lives back together.
This blog was written by Attorney Danielle Zemola of The Dellutri Law Group, P.A. Ms. Zemola defends homeowner in the foreclosure process and in the Bankruptcy Court.
