Foreclosure filings on Florida homes leap

[DoYouEverWonder]

June 27, 2006

Florida foreclosure filings jumped by 6 percent from April to May, according to a study by RealtyTrac Inc., an online data concern. That's one new filing for every 821 Florida households.

By contrast, national foreclosure filings rose by less than 2 percent, averaging about one new filing for every 1,247 U.S. households.

The numbers for St. Lucie County were even more grim. One of every 719 households there was the subject of a foreclosure filing in May, reported Irvine, Calif.-based RealtyTrac. And in Palm Beach County last month, RealtyTrac found, one of every 561 households faced a new foreclosure action — almost double the national average.

"Unfortunately, this is not a blip," said Jack McCabe, president of McCabe Research and Consulting in Delray Beach, which months ago warned of coming foreclosure problems. "It is going to be a trend for quite a period of time."

http://www.palmbeachpost.com/business/content/business/epaper/2006/06/27/a1d_foreclosures_0627.html


Can't say we didn't know this was coming. At the same time, the real estate market has gone flat and prices are starting to drop. Now what's that I just heard crashing?

[Maraya1969]

1. I knew it was coming. Everyone was getting insane about buying

houses because the prices were rising. I can't tell you the number of people who told me they were flipping houses about a year ago. Now in my own neighborhood there are "For Sale" signs all over the place and nothing seems to be moving.

[flvegan]

2. It'll get worse once MERS cleans up its act.

I know that the filings where MERS holds the mortgage "as nominee" aren't being filed as quickly or as timely as actual lender referrals.

[matcom]

3. more of a reflection of the lending industry than what you might think

i work IT in the mortgage business. in Florida, there is a broker literally on every corner. it is cut-throat down there. my understanding is compliance is pretty lax in the state as well. Florida writes more ARM and interest only loans than just about any other state.

that's what you get with Jebbie running things. less compliance = more public rip-offs.

[nothingshocksmeanymore]

4. A few years ago an interest only loan would have been ok

since one could stay in the house and end up with a ridiculous amount of equity to overcome the fact that they weren't paying down the principal...with the market beginning to flatten they're screwed.

[natrat]

5. darwin at work-no sympathy here

[DoYouEverWonder]

6. Like the article says

You've got people making $60,000/yr buying $400,000 homes. Who loosened the regulations to allow the banks to loan money to people who clearly couldn't afford it? I know the first time I got a mortgage it took me 3 months to get approved and I had to jump through more hoops then I ever imagined existed.

[shrike]

7. Am reading "The Two Income Trap" by Elizabeth Warren

She mentions the deregulation of the credit industry in the late 70s, early 80s. Credit cards used to be hard to get, prospective homeowners were required to cough up a sizeable downpayment. Deregulation changes all that. People who don't put any money down in for a home are much more likely to default.

She also gently mocks the "good old days" folk who talk about the Golden Age "when people paid their bills no matter what." Trouble is, borrowers may not be what they used to be, but lenders aren't, either. Lenders charge usury-level rates, indulge in predatory practices and bamboozle people with a myriad of rules and regulations that are hard enough for a professional to understand, let alone a layman.

[Tempest]

8. Not to mention the damned fools who bought into ARMs

I predicted this three years ago when ARM loans jumped in popularity.

By the end of last year, ARM loans accounted for 24% of all mortgages.

Now that interest rates are rising, the vast majority of ARM holders who were unable refinance into a fixed rate mortgage are going to lose their homes by next spring.

We have yet to see the real impact of foreclosures in the U.S.

[ileus]

9. I'm selling my home now, should I wait to buy???

I'm going to come out with around 50k hopefully this week, we're renting a place now but looking...

[Tempest]

12. Any time you're renting is a good time to buy

You're just pissing money down the drain by renting. Cut your losses and find a place you can easily afford.

Real estate agents are starting to hurt so play hardball with them. Same with lenders. Get a rate you can live with and is reasonable.

Don't get in a bidding war on a house like some morons have done. Walk away and look something else.

[funkybutt]

10. when I applied

about 4 years ago, they approved us for WAY more than we could realistically afford. It was as if they figured our mtg was our only expense.

[UCLA Dem]

11. Thats what happens when people buy homes they can't actually afford...

In Southern California, people buy homes all the time above what they should because everything is so damn crazy expensive and salaries are not keeping up by a long shot.

Maybe if they stopped issuing interest only loans than the prices would come down, as no one would be buying these houses and artificially keeping up the prices??....just a thought.