In Florida, cash is king when it comes to buying homes. Over a million fewer mortgage loans exist in the state's residential real estate market today compared with several years ago. This is due to foreclosures as well as short sales that occurred while the recession was taking place.
The number of mortgage loans decreased from over four million in 2007's third quarter to a little more than three million during the same time period of 2014. Florida's 25 percent drop in mortgages was the biggest decrease in the United States. In many situations, distressed properties that were foreclosed on in the recession ended up being purchased by people who paid in cash.