[essessemm]

Can this be true?!?

Business: Mortgage breakdown in Florida

"One in five U.S. homes entering the foreclosure process last month were located in Florida. It's not the sort of ranking that makes you want to shout, "We're No. 1!"

[FL_TN_Nana]

I heard on the news last night that 176,000 homes in the US foreclosed in May. I know they mentioned FL as one of the highest rates, but they said Nevada was #1. It is expected that foreclosures at a high rate will continue for at least another year.

It was all that creative financing for people who would not have otherwise qualified for a loan. Now several of those mortgage companies are filing for bankruptcy.

[essessemm]

Originally Posted by FL_TN_Nana

I heard on the news last night that 176,000 homes in the US foreclosed in May. I know they mentioned FL as one of the highest rates, but they said Nevada was #1. It is expected that foreclosures at a high rate will continue for at least another year.

It was all that creative financing for people who would not have otherwise qualified for a loan. Now several of those mortgage companies are filing for bankruptcy.

Hmmm, then there is a problem with the data somewhere as this article states that based on May, Florida is clearly number 1.

Or maybe it's just that Florida is #1 in homes ENTERING foreclosure, not actually foreclosed.

[FL_TN_Nana]

Originally Posted by essessemm

Hmmm, then there is a problem with the data somewhere as this article states that based on May, Florida is clearly number 1.

Or maybe it's just that Florida is #1 in homes ENTERING foreclosure, not actually foreclosed.

Either way isn't too great though! Probably someone was using different dates or something. And there are lots of foreclosures in Colorado and other states too, but I can't remember now which states were shown.

[macguy]

Originally Posted by essessemm

Can this be true?!?

Business: Mortgage breakdown in Florida

"One in five U.S. homes entering the foreclosure process last month were located in Florida. It's not the sort of ranking that makes you want to shout, "We're No. 1!"

I don't think they represent the classic image of a foreclosure. These are not hard working families who have fallen on hard times and are losing their houses and being put out on the street. They are bad investments and goofy loans people are just walking away from and they go back on the market. It does flood the inventory though and maybe that is a good thing. It will help to level things out and get some prices back to where they should be a little quicker.

It reminds me of the figure that is always thrown out about small business how 80 or 90% go under in the first 2 years. It does not mean those are the odds of going out of business if you do a start up. It means that is the number of people who had bad business plans that were destine to fail from the start no matter what. Smart people who know what they are doing are successful.

People who own houses and pay their mortgages, have normal loans and decent jobs are not being put out on the street such as a number like that gives the impression of. Those were mostly bad deals from the word go with owners who now could care less. Their only worry now is how to rebuild their credit.

[Toro]

Historically, real estate prices across the nation have risen on average 3% per year for 100 years. In desirable places like Florida, it has risen 1-3% more. Housing prices rising 20-25% per year for 3-5 years stretches the bounds of economics when rising incomes do not support it.

So it is not surprising so many foreclosures have been in Florida. And there is more to come.

[backtofla]

ca, fla were top 2 i thought.