By Michael Braga, Herald-Tribune |
“Florida had the highest foreclosure rate in the U.S. in July, according to the Florida Legislature Office of Economic and Demographic Research.
One in every 326 housing units was in foreclosure. Nine of the top 10 cities in the country – in terms of foreclosure rates – were in Florida – Jacksonville, Miami-Fort Lauderdale, Port St. Lucie, Ocala, and Palm Bay-Melborune were the top five.
The good news, according the Florida Legislative Office, is that the front end of the foreclosure stream – comprised of mortgages newly falling into delinquency – has steadily declined in 2013.
What’s more, Florida’s underwater homes declined from a high of 50 percent of all mortgages to about 26 percent today.
Still there are a large number of “ghost homes” in that state that are distressed beyond realistic use. That means that the housing supply has become two-tiered – viable homes and seriously distressed homes.
Prior to the increase in foreclosures in 2007, the average foreclosure took 169 days to slightly less than six months to process. Today, a foreclosure takes 907 days to process (about 2.5 years) the third longest period in the nation. The abnormally long time to complete the foreclosure process slows the placement of these properties on the market.
The state will need significant time to work off the current excess – about two years in the optimistic scenario – likely longer. Because the state is so diverse, some areas will reach recovery much faster than others.
In May 2013, over 35 percent of all sales were either foreclosures or short sales, and most of these sales were heavily discounted.”