I read an article today in the Miami Herald today that I thought you might be interested in. Please read it below.
Florida and California, states with significant investor speculation and overbuilding during the real estate boom, helped push the percentage of homes entering foreclosure nationwide to record highs, an industry group reported Thursday.
Together the two states had 21 percent of all outstanding loans but were responsible for 30 percent of new foreclosures in the three-month period ending Dec. 31, according to numbers released by the Mortgage Bankers Association.
In Florida, 10.69 percent of borrowers with first lien home loans were behind on payments or in foreclosure, compared to 7.86 percent nationwide, the report said.
The percentage of new foreclosures in the state rose to 5.19 percent from 3.52 percent in the previous quarter, driven by a large percentage of defaults among subprime borrowers who got loans despite shaky credit.
More than 17 percent of all subprime loans entered foreclosure in the fourth-quarter, compared to just 2.66 percent of prime loans.
MBA economist Doug Duncan said the state's foreclosure problems were the result of interest rates resetting on adjustable-rate loans coupled with falling home prices.
Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com
Thursday, March 06, 2008
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