Threat of foreclosure is still a concern in Florida

Threat of foreclosure is still a concern in Florida

Florida's housing market has recently posted impressive gains in sales volume and property price. However, a company called Corelogic recently reported that nearly 40 percent of the homes in the Fort Lauderdale area, and more than 40 percent of the homes in the greater Miami area, remained under water during the first quarter of 2013. That means, despite improvement in the housing market, threat of foreclosure is still a substantial concern for many Florida residents.

It seems that foreclosure activity and default notices, as well as bank repossessions and auctions, in Miami-Dade County increased by more than 78 percent in May 2013. The increase was calculated in comparison to May one year prior. Statistically, this means that one in every 143 Miami-Dade residents received a foreclosure notice of some kind during May 2013. This figure represents a number that is greater than six times the national average. The national average is one in every 885 residents.

It is believed that a large percentage of the foreclosure activity has occurred because lenders are now moving ahead with foreclosure cases that had been delayed as a result of national regulatory concerns. Robo-signing and other administrative mishandling resulted in long delays in foreclosure activity for many mortgage holders. The South Florida area has very few properties available for sale. It is presumed that homeowners forgo putting their homes on the market for fear of paying cash at closing to cover negative equity.

Overall, the housing market seems to be improving slowly. However, many homeowners are not out of the woods. The good news is help is available for homeowners who are facing financial burden. In many cases, the aid of legal counsel can prove an excellent decision when homeowners are faced with the threat of foreclosure.

Source: MiamiHerald.com, "South Florida still under a cloud of foreclosures and negative equity," Martha Brannigan, June 13, 2013