Number of Florida Bank Foreclosures in April Rise
June 12th, 2007 by 
Joseph Smith
The foreclosure activity spiked up in Florida last April. There were 656 real estate owned homes recorded compared to the 561 in March. Overall, the state’s foreclosures rate did not change much, with 1 filing for every 510 homes, as the correcting market somehow prevents the worsening of the subprime mortgage problem. Despite this, the growing inventory of Florida foreclosures still does not bode well for the state’s real estate market condition.
Florida is among the top ten states that have the highest foreclosures rate. It joins Nevada, Colorado, Ohio, Connecticut, California and Georgia in the top seven. Local real estate market experts believe that the subprime mortgage market was to blame for the generally high foreclosures activity experienced in the state. A couple of years ago, many home buyers with very little financial abilities were able to buy Florida homes because of the relaxed underwriting procedures. Unfortunately, these buyers did not put into consideration the possibility that when interest rates soar, they will have difficulties paying their mortgages.
On the other hand, lenders also played a significant role in the current foreclosures condition. Predatory practices such as offering interest only payment options and no down payment schemes resulted in many buyers being enticed, even when they could not afford it. As interest rates on these mortgages rise, many found themselves facing Florida bank foreclosures.
The availability of bank foreclosures in Florida is generating much interest from first time and move-up buyers. Hopefully by spring, sales activity will pick up as more and more sellers offer greater discounts to pique buyer’s interest. Many of these sellers work with real estate brokers like Foreclosure Deals to reduce their large inventory. These realtors offer foreclosure listings to seasoned buyers and investors to make their bargain-hunting easier.
