The Future of Foreclosures in Florida

Author: Karrie Rose

Author: Karrie Rose

While the current recession languishes on, some states are suffering from a huge backlog of foreclosures in the process and large numbers of foreclosed homes on the market. Florida is one such state, having the third highest mortgage payment delinquency rate behind both the sunshine state of California and the silver state of Nevada.

Floridas foreclosure rate for 2009 was up by 29% over the previous year, which was in itself up over 100% from the previous year. There are almost half a million pending foreclosures in Florida currently and the court system is clogged with them.

The Supreme Court of Florida has recently issued an order which will require foreclosures to go through a managed mediation process that will help to alleviate the pressures on the court system and provide some solutions to many home owners.

When managed mediation is ordered the program is paid for by the complainant, up to approximately $750. The success rate for cases that go to mediation is around 75%; a successful mediation is generally one that results in a mortgage modification. Mediation is helping to settle many cases, many within 3 months, clearing up the bottle neck thats become such a problem in the court system.

Until such time as the waves of foreclosures that have swamped the Florida market subside though, there will be many foreclosure properties available in the Florida area, particularly in south Florida. At this time there are a great many foreclosed properties that are available at greatly reduced prices right across the state, including desirable areas like the Emerald Coast.

There should remain a good selection of homes and foreclosures for interested buyers for some time yet; though many home owners with foreclosures are finding solutions with managed mediation, there are still many homes finding their way to being bank owned properties. There are also the incidences of home owners with underwater mortgages who are walking away from their homes which are now worth far less than what is owed on them.

Hopefully, with the projected rise in employment in the latter half of this year, we will see the banks stocks of homes shrink down to previous levels and mortgage defaulting become again the rarity that it has been in better times. Until that time, however, hopefully this new program of moderated mediation can help many homeowners come to an agreement with their lenders and find solutions to the problem.About the Author:

You'll enjoy getting to know the Destin real estate area at Edkirkland.com. Our free website has powerful home search technology to help you compare deals and enter the market with confidence, extensive buyer and seller information, and details on beautiful local communities, including the Seacrest Beach real estate area.

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