Foreclosures in Florida Expected to Rise

According to Josh Salman of Herald Tribune, although the number of delinquencies is falling, Florida still had double the share of mortgaged homes in foreclosure in October as compared to any other state in the United States. The difficulties of homeowners to pay their mortgages can be rooted from the five years of historically high unemployment and inflated home values.

Joseph Lehn, a Sarasota foreclosure attorney said in a statement, "Florida is a low-income state, and with the predatory lending issues we had, every day it's just getting worse," He added, "People are broke. Retirees are going back to work. I have 75-year-olds with nowhere to go. They didn't plan for this."

In October, 58,000 foreclosures were reported in the U.S., which is down by 25 percent from September and off 17 percent from the same period last year. This figure was released by CoreLogic, a real estate data firm.

On the national scale, 1.3 million U.S. homes, or 3.2 percent of residential homes are with a mortgage and some of them are now in some stage of foreclosure. In September, the state of Florida regained the top spot in America. In the past twelve months, Florida completed 95,200 foreclosures, which is 12 percent of the nation's total. There are real estate experts and economists who attribute Florida's high ratio to the judicial system. According to the report of Salman, it now takes an average of 666 days to process a foreclosure.

The financial crisis started in September 2008 and since then, 3.9 million foreclosures have been completed all over the country. Sean Snaith, an economist with the University of Central Florida, in Orlando said in a report, "The economy is still very weak." He added, "The labor market is improving, but I don't think anybody can look at it and say it's healthy. That's always going to put pressure on foreclosures." Then again, there are new developments in Southwest Florida in areas like Lee County.

In another story, Dave Osborn of Marco News recently reported that there is an 83 percent increased in Southwest Florida foreclosures. Practically, forty percent of such sales increased are reported for Naples-Marco Island and this is the same for Cape Coral-Fort Myers foreclosures. In the third quarter, foreclosed sales were 652 as compared to the reported 356 in the prior quarter.
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