Florida America’s Foreclosure Capital

Florida America’s Foreclosure Capital

Florida has reclaimed the title of America’s foreclosure capital. According to RealtyTrac, Florida previously ranked second to Nevada, but the Sunshine State pulled ahead in October 2013.

One in every 332 homes in Florida received some type of foreclosure filing in October 2013. Some received an initial foreclosure notice, a notice of court auction or a repossession by a lender.

Among large metropolitan areas, the Tampa-St. Petersburg-Clearwater area ranked fifth in the country in foreclosures, with 1 in 302 homes receiving some foreclosure filing.

More alarming in terms of foreclosure rates, is nine of the top ten cities in the country are in Florida. Among the nine are Jacksonville, Miami-Fort Lauderdale, Port St. Lucie, Ocala, and Palm Bay-Melbourne, Orlando-Kissimmee, Lakeland, Cape Coral-Fort Myers, and Sarasota-Bradenton-Venice.

26 percent of Florida homes are considered underwater. The number of “ghost homes” dilapidated beyond use is overwhelming. Florida’s housing supply has become two-tiered: viable homes and distressed homes.

Florida has also seen a dramatic drop in short sales as lenders turn to more aggressive pursuits of foreclosures through local court systems. This plunge in short sale contracts suggests the $25 billion National Mortgage Settlement to encourage sales and loan modifications is not having the impact that had been hoped.

Florida foreclosure notices reached a three-year high in October 2013 with last month lenders filing 11,606 notices of foreclosure sale.

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