While the rate of foreclosure has declined nationwide, South Florida has seen a recent surge in foreclosure starts. In fact, the Sunshine State had one of the highest rates of foreclosure starts in the U.S. in July, compared to the same period last year, according to a recent study by Attom Data Solutions. The report showed one in every 1,180 housing units in Florida showed a bank warning of pending foreclosure due to late payment, a 35 percent increase year-over-year.
Foreclosure starts in Miami-Fort Lauderdale-West Palm Beach increased 29 percent in July — the third consecutive month of year-over-year spikes (foreclosure starts went up four percent in May and 35 percent in June).
Does this mean we are about to enter another housing crisis? Not likely. The report tracked foreclosure rates in all 50 states as of July 2018, comparing them to the July 2017. And according to the data, the total foreclosure rates in the U.S. are down 0.5 percent. It is a select number of states, Florida included, that appear to be hit the hardest.
Out of all the metropolitan areas in the U.S., South Florida was one of the top three with foreclosure filings, coming in third to the Los Angeles and Houston metropolitan areas.
This brings the question as to why South Floridians are being hit so hard by foreclosure? The report speculates that the 2017 hurricane season could be the reason for the increased foreclosure filings as many are still struggling to get back on their feet after last year’s hurricanes. The 2017 hurricane season hit many Floridians hard, impacting a total of 4.8 million mortgaged homes. A number of these homes were granted mortgage forbearance extensions, giving the homeowners extra time to catch up, but not everyone received this benefit.
Another factor that has attributed to an increase in foreclosure filings in South Florida include the number of underwater homes entering the real estate market. According to Attom’s report, one in 10 properties in the U.S. have a mortgage that is underwater, meaning the market value is 25 percent lower than the current loan balance. As more underwater homes are put on the market, property values almost always drop. Analysts warn this new wave of foreclosure starts could even impact higher-priced homes, including the abundance of expensive condos in the downtown Miami area.
If you find yourself in over your head when it comes to your mortgage, it is important you contact an experienced attorney for a free consultation.
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Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure, please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.
