2008 was a very volatile year for the real estate market and the economy affecting local, state and national levels. Record levels of foreclosures plagued every state as more than 2.2 million US families lost their homes. With more people losing jobs, and fluctuating prices of gasoline compounding these woes, the nation will continue to face this grind in the coming months.
Florida continues to be one of the top states in the country with the highest numbers of foreclosed properties in the year 2008. Credits continue to be in a tight bind and coupled with mounting job losses and plummeting house values, more and more families are falling behind on their mortgage payments. In 2008, one out of six mortgages in Florida were either in various stages of foreclosures or behind in mortgage payments.
The Manatee County Circuit Court registered more than 5,500 applications for foreclosures from mortgage lenders. This is more than double the 2,620 cases in 2007. These figures indicate that one out of every 33 homes in Manatee country is in foreclosure, considered as one of the highest rates in the country.
Many blame the meltdown in subprime mortgages in causing the foreclosure crisis. Families or individuals owning homes that were acquired during the housing boom a few years ago started defaulting on mortgage payments as adjustable-rated mortgages jumped to higher levels. A big number of homeowners also went underwater, with the values of their homes a great deal lower than what they owe in their mortgages. These homeowners are facing difficulties in avoiding foreclosures as they could not sell their homes.
Home buyers have grown extra cautious in spending capital and continue to wait for better offers and deals. This prompted sellers, desperate to avoid foreclosures, are short-selling their homes with prices at less than half the homes’ original values. This resulted in a significant drop in median home prices.
Author Resource:-
Leticia Carvalho has been educated in the finer points of the foreclosures market over 5 years. Read about the following article Foreclosures Soar as Jobless Increase in Florida by Leticia Carvalho.
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