Sunshine State Foreclosures Fall But Not for Central Florida

The rate of repossession of homes in the Sunshine State has declined during the past year. An estimated 13 percent fall on foreclosures was noted over the area including Tampa, Miami, and Jacksonville. In fact, the numbers were so good that it ranked second in the national scene with foreclosure filings falling by 16 percent from June last year.

However, it seems to be puzzling residents as to how the case is different from Central Florida. It has been reported by RealtyTrac, a real estate research firm that in Metropolitan Orlando alone, an increase of 20 percent was seen in its foreclosure filings compared to what is was a year ago. A total of 2,663 notices were received by homeowners in June of this year alone. It also seems that Metropolitan Orlando is not singled out in this turmoil as the Volusia and Polk counties are also experiencing the same dive.

Data shows that recent buyers of homes in Metropolitan Orlando are not those that comprise a big chunk of the foreclosure filings. Specifically, 60 percent of the foreclosure notices were received by homeowners who have acquired their properties in 2005, 2006, and 2007 when the housing market was still booming. Meanwhile, only 6 percent of those who have acquired their property during the last three years received the notice.

Baffling as this situation may be, experts are saying that the reason behind this fall is that lenders have become impatient about waiting and holding on to properties that are lagged in their mortgages. This is especially so since homes and their values are not increasing during this period. According to RealtyTrac Vice President Daren Blomquist, it has made lenders uninterested in sitting on almost-empty residential asset pools.

What is also appalling is that even if banks are repossessing houses and disposing them, they still incur losses because of the stagnant pricing trend of homes in this area of the state. This means that the prices for homes is not going up. To be specific, about $100,000 worth of losses is being shouldered by them for every house disposed.

On a general note, it is said that eight out of the top 10 foreclosure markets in America for June were found in Florida. In fact, there is one legal notice for every 409 homes. But Florida is trying its best to change this trend throughout the state and improve its standing in the real estate industry.