Last Thursday, RealtyTrac, a firm that tracks listings of foreclosed properties nationally, released the latest information when it comes to foreclosed properties in Southwest Florida as well as the rest of the country. Analysts predict that there would be an expected increase in the number of foreclosures in Lee County area and the rest of country from late this year through next year. This rise in the number of foreclosures, as experts agree, could impair the housing market in areas like Lee County that are beginning to recover from the financial crisis.
Florida was one of the states that had been hit hardest by the market crash experienced a few years ago. Southwest Florida was especially affected, experiencing the negative impact of foreclosure crisis as there were tens of thousands of reported cases filed during the housing boom that went crashing in 2007-2008.
As new Southwest Florida foreclosures are listed in the second quarter of the year, most major banks in the country are now starting to move in on these foreclosed properties. This has been the first increase in the number of foreclosed properties since the latter part of 2009 as reported by the California based company.
On a national level, there were 311,010 reported new foreclosure cases that were filed in the middle of the year, which was up 9% from the first quarter of this year. This figure was also up from the 6% that was reported from last year’s figures.
It takes an average of 378 days for the foreclosure process from the start up to the end.
One of the reasons why the number of distressed properties is picking up again is because of the adjustable-rate-mortgages or ARMs. This is one of the factors that has made home buying affordable but has also made the real estate sector vulnerable to the crisis a few years back.
Homeowners who are behind in paying their five-year ARMs are in the danger of being sued if they do not take any action and not be proactive about this situation.
In the Fort Myers
area, there were a reported 498 cases that were filed in June which was down from the month of May which listed 629 cases. This figure was also down from the reported 520 filings which were listed last year.
However this cannot be considered the worst case that Lee County has experienced in a couple of years. The most distressing situation is when the county had listed 2,000 cases in a single month.
However, other real estate and economy experts believe that this increase might do some good for the housing market. There are more chances for homeowners to sell their property and get out of their mortgages. This is also a means that the housing market is able to absorb new foreclosed properties while it is in its recovery phase.