The Miami Herald reported today that the number of Florida foreclosures jumped 57 % in January compared to a year ago. A mortgage research firm said Monday, that Florida's Cape Coral-Fort Myers had the highest rate of homes in foreclosure in the nation.
The Florida foreclosure rate climbed 158% over last year which was much was much greater than the rest in the nation.
Lenders are being forced to taking possession of Florida homes that could not be sold at auctions.
Last year 48,425 homes nationwide received at least one notice from lenders related to overdue payments a year earlier, last month some 233,001 received a notice according to Irvine, Calif.-based RealtyTrac Inc. Almost half of that total involved first-time default notices.
Despite ongoing efforts by lenders to help borrowers manage their payments by modifying loan terms, working out long-term repayment plans and other actions, the situation has worsened.
RealtyTrac's vice president of marketing, said Rick Sharga said, ''You have more people going into default and a higher percentage of the properties going back to the banks,'' The U.S. foreclosure rate last month was one filing for every 534 homes.
With the highest foreclosure rate of any metro area in the nation, Cape Coral-Fort Myers has one of every 86 homes in some stage of foreclosure with, said RealtyTrac Inc.
Ranked second is Stockton, California, with one of every 97 homes in some stage of foreclosure filing, while the Riverside-San Bernardino metro area in Southern California had the third-highest foreclosure rate with filings for one of every 101 properties.
The foreclosure filings for January’s tally represented an 8 % hike from December.
The attempts to help struggling home owners have fallen short and the loan workout modification programs aren't having a significant material effect on keeping properties from going back to the banks.
Compared to January 2007, there was a dramatic increase of 90% last month in the number of properties that were repossessed by banks.
Sharga said, ''It suggests that there's little or no equity in a lot of these homes, because they're not even being sold to investors at auctions, and it suggests a continuing weakness in a lot of markets in terms of real estate sales''.
It is tougher for homeowners unable to sell their homes or refinance when they face mortgage payments they can't afford because of the falling home values and tighter lending standards that have extended the housing slump.
A wave of adjustable rate mortgage resets expected in May and June threatens to push many other homeowners into default.
Thirty states saw an increase in the number of homes that had received at least one filing, during the past year.
Nevada, up 95 % from a year earlier, led the nation, with 6,087 properties receiving at least one filing, but down 45 % from December, the firm said. That translates to a rate of about one foreclosure for every 167 households.
California, Florida, Arizona, Colorado, Massachusetts, Georgia, Connecticut, Ohio and Michigan are the top 10 states with the highest foreclosure rates.
California had the most of any state reporting 57,158 properties with at least one filing. The total increased 7% from December and 120% from a year ago and.
Up about 158% from a year earlier, Florida had 30,178 homes on the foreclosure track, though down 3% versus December, RealtyTrac said.
Contributed by MLR Realty
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