RealtyTrac, which compiles and monitors the foreclosure market in the United States, released a report showing that Central Florida foreclosures increased three times in the span of one year, from 2007 to 2008.
Hardest hit cities are Deltona and Kissimmee where six of their neighborhoods are experiencing high rates of Central Florida foreclosures.
According to industry experts, areas most affected by Central Florida foreclosures are communities that have affordable housing market.
Florida foreclosures took a beating in January 2009 with 10,007 units falling victims to the crisis and pre-foreclosure filings reaching 43,070. It is predicted that Florida foreclosures could rise by 100 percent this year, making critics doubt whether President Barack Obama’s foreclosure prevention plan would succeed in its goal to help as much as 9 million American homeowners remain in their properties.
Meanwhile, Florida Governor Charlie Crist explained his plan to reduce taxes to allow distressed homeowners pay for mortgages.
Florida has the highest number of default mortgages, with one out of five mortgage loans in default in 2008.
On the other hand, the Bank of America will offer $2.5 million grants to help stem the tide of Florida foreclosures.
The $2.5 million grant will be coursed through the Alliance for Stabilizing Our Communities, a coalition led by the National Council of La Raza, National Urban League and the National Coalition for Asian Pacific American Community Development.
The alliance, which was established to help multicultural borrowers facing the threat of losing their properties to foreclosures, will find the best possible solutions for the housing problems, particularly how to control the growing number of distressed properties.
The grant that the Bank of America would provide will fund the hiring of additional counselors, conduct of counselor training, production of multi-language outreach educational materials for at-risk homeowners and resource guide materials to educate and prepare communities on potential foreclosure challenges.
The alliance will host 49 property retention fairs in various cities, including Fort Lauderdale in Florida, to offer over 11,000 distressed homeowners onsite counseling by nonprofit organizations approved by the Housing and Urban Development.
Bank of America will post retention associates at various fairs to partner with alliance nonprofit organizations to review mortgages and determine several foreclosure-prevention options such as refinancing and loan modifications.
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