A staggering 22 percent of all mortgages in the state of Florida are non-current, according to a new report from Lender Processing Services.
By non-current, they mean loans that are either delinquent or in some stage of foreclosure; perhaps more troubling is the fact that 10.4 percent of home loans in Florida are in foreclosure.
The LPS October Mortgage Monitor also revealed that the nation’s foreclosure rate was 3.12 percent as of September 30, up 2.6 percent from a month earlier and 88.9 percent year-over-year.
And remember that’s with all the government intervention, foreclosure moratoria, loan modifications, and the like; the national mortgage delinquency rate was 9.37 percent as of September 30.
The report also highlights the large shadow inventory of foreclosed properties that could wreak havoc on home prices and a possible housing recovery.
“The number of loans deteriorating further into delinquent status is now more than twice the number of foreclosure starts, indicating another major wave of troubled loans in an already clogged loan pipeline,” the company said.
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Florida: forever remembered as the "State of Hanging Chads"
ReplyDelete..& now "State of Dangling Mortgages"
ReplyDeleteThis is what living on the edge is really about
WOW
ReplyDeleteThis might mean some VERY cheap vacation property for those the have the wherewithall to afford it.
There are always those that have the foresight to come out on top.
We left Florida 27 years ago; the unemployment there has always been high; low paying service jobs not much else..cost of living high, property taxes, insurance, but ok for vacations. Laura Ann
ReplyDeleteCame to Florida 27 years ago, made a bunch of $$$ in real estate. Still sipping those Pina Colada (without umbrella) and dreaming on the beach of this state's income tax free sun drenced beach while waiting for the next boom to arrive.
ReplyDeleteThanks Snow Birds!!
340 You will be waiting for a long time for the next boom, here is a clue, there won't be one here is why, we don't PRODUCE anything anymore, our complete manufacturing base has been sent overseas and it's not coming back ever. Hopefully you have enough to live on, because you won't be seeing anymore gains in Real Estate ever.
ReplyDeleteSo who is suprized? Just run down to Florida, buy a $400,000.00 beach condo or a $500,000.00 home. Then after moving in, get you a McDonnies burger flippin job and here you are! The next year, sell the condo or house to some other stupid sucker who wants to do the same thing, and you made lotza bucks on the deal. whose fault is that? "Mr Lender, right now I don't have a job, but you betcha I am gonna get me one tomorrow". "Are you really, Mr Borrower?" "Then you sign right here, please and here are the keys".
ReplyDeleteIt is REALLY hard to have much sympathy for people like this, borrower or lender. The sky is the limit! Get you some!! Get all you want, tomorrow will NEVER come.
---side note-----"Would you like a new Lexus SUV with that?"
Guy that worked for me took a position in Florida. His last day I told him to resist the urge to purchase a house, and to wait 4-5 years, minimum. He replied that prices had already dropped 10-20%, and that they couldn't fall much further. I tried to explain that what was happening in the broader economy was not a slight downturn, but I knew is was pointless to try.
ReplyDeleteHis wonderful new house purchased Apr '08:
Price paid: $277,500
Zestimate®: $214,500
Nearby house sold for $207K (300sqft more)
House for sale listed at $150K (300sqft less)
- could be trashed
@ 7:15
ReplyDeleteWait a few more months that wonderful $277,500 FL home will be worth $89,000 leaving millions so upside down on their mortgage that Real Estate is now really be considered a liability instead of an asset.
Chinese with hard currency may purchase Florida and transform it into a penal colony for captured pro-Constitutional/pro-Christian freedom fighters.
ReplyDeleteChristianity does not forbid the culinary preparation and eating of Chinese people.
ReplyDeleteJust so you know, 9:18pm.