11% of Florida homes in some state of foreclosure

11% of Florida homes in some state of foreclosureORLANDO, Fla. – May 29, 2009 – The faltering economy and falling home prices plunged an additional 99,000 Florida borrowers into foreclosure in the first three months of the year, bringing the total number of home loans in some stage of the foreclosure process to 374,134.With 11 percent of its home loans in foreclosure, Florida ranked first in the country for defaults and was the only state in double digits. The rate was up roughly 2 percent from the previous quarter, according to figures released Thursday by the Mortgage Bankers Association.As job losses mounted and incomes dwindled, more and more homeowners fell behind on their loans, with payment problems socking greater numbers of previously credit-worthy borrowers who have traditional mortgages.The delinquency rates for loans 30 days or more past due stood at 10.67 percent in Florida, or about 378,000 of some 3.54 million loans.The rate dipped slightly from the previous quarter, but that is always the case at the start of the year, said Jay Brinkmann, chief economist for the MBA. The rate nationally was 9.12 percent. Florida’s crisis is particularly acute because of the staggering run-up in real estate values during the housing boom. People rushed to get loans to buy property that, in many cases, they could not afford. When prices collapsed, homeowners were stuck, unable to sell or refinance. Others were caught in adjustable-rate mortgages with payments that soared.With Florida home values continuing to fall, Brinkmann predicted foreclosures would continue to rise through the rest of the year. A large oversupply of new property makes stabilizing home prices in the state likely a distant prospect.“It’s going to take getting demand even with supply just to put a floor under prices. Even then, it may not get it up to a point where it gets buyers back above water,” Brinkmann said.At the end of March, roughly 71 percent of owners who bought in Miami-Dade and Broward counties in the past five years were underwater, or owed more than their homes were worth, according to Web-based real estate services firm Zillow.com.Analysts have said so-called negative equity is one of the biggest reasons why borrowers fall into foreclosure – if they need to sell, they can’t, at least not for enough to cover the debt, or they choose to throw in the towel, thinking it’s better to take their losses and rent.While most lenders have established loan modification programs and are helping borrowers reduce their monthly payments through things like interest rate reductions and extended terms, many homeowners are falling back into default. A recent study by Fitch Ratings projected that as many as 75 percent of subprime loan modifications would fall behind by 60 days or more within a year. Brinkmann said that so-called redefaults could show up in the new foreclosure statistics: “There may be repeat visitors coming back into the numbers.”Copyright © 2009 The Miami Herald, Monica Hatcher. Distributed by McClatchy-Tribune Information Services.

Save our homes?

Save Our Homes

Being a realtor here in the Tampa area for the past 5 years I have seen and heard a lot. What I am sad to report seeing a lot lately has been the increase of everyday families losing their homes.

These people aren't Wall St wanna be's. They aren't so called savvy investors who tried to wheel and deal their way to the top of the real estate ladder. They are wonderful everyday people with regular jobs with regular families trying to muddle through their everyday world which is turning upside down.

On any one average day, I must receive 2 or 3 people stopping by our home to see if we could need any work done. Perhaps getting carpets cleaned or mowing our lawn, anything to try to make a few dollars in order to perhaps prolong the inevitable. I see them outside our window, walking the hot pavement, going door to door in our quite community with the hope that perhaps just ONE somebody could use their services.

I can say that a lot of us are close to the same fate although no one will admit it. It has been troubling times for many and like many have been holding on by the skin of our teeth. We all paint smiles on our faces when we come in contact with the outside world never letting on that things too for them might not be so rosy. Who are we trying to fool?

Many calls we receive from these everyday folks with the hope that perhaps we can relieve their pain. Perhaps there is some magic, some hope, some something that we can offer, say or do that would help lift the weight from their shoulder?

For the most part, these stories We hear are hard to listen to. They are everyday folks that lived paycheck to paycheck like many of us do and no longer have that paycheck to keep them afloat. Wonderful children who live in a world without reason, “Just Because”. The innocence of youth apparent as they play in the car as mom or dad approach each door in the hope for work.

I hear stories that they tried the governmental programs only to be told that either they make too much money for some and not enough for others. They called mortgage companies to inform them of their need for assistance only to be treated like 3 class citizens…that after being transferred around the world 4 or 5 times, explaining their heart felt situations to anyone that will listen, each time opening their wounds more and more only to be told that yet another department needs to handle them. The rep on the other line is cold and distant after hearing many like such calls asking them payment, period.

We’ve been able to help many people with these hardships I am happy to say. Sometimes it feels as though we are going through it with them. Perhaps that is what has separated us from the rest? Who knows?

We are indeed in troubling times. I have found new faith in that people it appears have been returning to the basics. “Do you really need that 70” plasma TV?” I ask myself only to quickly reply, “Nope”. I have a renewed trust in the people I care for and my faith in God to lead my family through these turbulent waters. I ask him for the strength, patience and compassion so that I may assist others in any way we can. We don’t have much in comparison to some and yet have the world in comparison to others.

I was just wondering how others have been doing? Perhaps some stories you’d like to share?

Best wishes and God Bless