Number of Foreclosures in Florida Remains High
Florida had the nation’s highest state foreclosure
rate in 2012. The nation’s highest state foreclosure rate for the first
time since the housing crisis began. In 2012 and currently, the actual
discount off a normal price is much less than it used to be.
The national average discount of foreclosed real estate was only 8
percent compared to non foreclosures, The high was a 23 percent average
discount nationally in 2009. The average in 2011 and 2012 was appx 9-11
August 2012 – Fewer homeowners nationwide are “underwater” on their
mortgages, owing more on their loan than their home is currently worth.
CoreLogic reported in July that the number of underwater mortgages fell
from 12.1 million or 25.2 percent at the end of 2011 to 11.4 million or
23.7 percent by the end of the first quarter of 2012.
The number remains high in some states. Those with the highest negative
equity also tend to have some of the highest percentage of homeowners
falling behind on mortgage payments and facing possible foreclosure.
24/7 Wall St. identified the following states with the
highest percentage of homes with underwater mortgages.
While the housing market is showing signs of
picking up across the country, housing experts warn of a new concern for
homeowners: resetting home equity lines of credit.
Home equity lines of credit often require low payments in the initial years
as homeowners only pay loan interest at the onset. But later on, these loans
reset with higher payments when homeowners have to start paying down the
principal. A large percent of homeowners with home equity lines of credit
have paid only the minimum amount due on these loans. Many borrowers may
soon see their home equity lines of credit reset with higher payments and
those higher payments may be too much for some borrowers.
The Office of the Comptroller of the Currency warned of the danger these
resetting payments could pose for many homeowners across the country. The
OCC warned that nearly 60 percent of all home equity line balances would
require payments of both principal and interest between 2014 and 2017.
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