Many people are still feeling the effects of the recession and struggling economy. For some, this includes falling behind on mortgage payments and losing their home – or coming dangerously close to having it happen. Thankfully, there are signs that the economy is improving, though this is not the case everywhere. A recent news article reported that foreclosures in most of Florida are on the decline, but the area of central Florida may not be seeing the same trend.
Increased Foreclosure Activity in Central Florida
According to a recent study, central Florida is seeing an increase in foreclosure activity despite the decline in home repossession that occurred across the state over the last year. More specifically, legal filings regarding foreclosure in metropolitan Orlando increased by about 20 percent in June of 2014 as compared to a year ago. Real estate research firm RealtyTrac reported on the findings.
In other parts of Florida, foreclosure actions decreased by 13 percent over the same time period. Other notable metropolitan areas in Florida, including Tampa, Miami, and Jacksonville, experienced declines in foreclosures over the past year. This decrease reflected a similar trend on the national level, with filings across the country having dropped 16 percent since 2013. However, Florida still led the nation in foreclosure rates, with eight of the country’s ten largest foreclosure markets being located within the state.
Why the Increase in Orlando?
With Orlando being somewhat isolated in the increased foreclosure activity, some may wonder what circumstances produced such a result. Some are speculating that the increase may be indicative of lenders moving forward with foreclosure actions such as auctions on homes with mortgages that were previously delinquent. Lenders are likely no longer interested in sitting on such residences when homes are no longer gaining value. The slower a home is to gain value, the less lenders have to gain by holding onto foreclosure properties for an extended period of time. RealtyTrac found that homes in Orlando appreciate at a 13 percent rate over the last year, as compared to an almost 23 percent increase the year prior.
It is not all bad news for Orlando homeowners, however. Despite the recent increase in foreclosures in the area, the rise does not seem to be a reflection of those home buyers who recently purchased homes in the area falling behind on payments. More likely, as mentioned above, is that the numbers correlate to homes that were in foreclosure for a period of time and are only recently going up for auction as a result of lender’s decisions. RealtyTrac’s findings support this idea, as they reported that about 60 percent of houses foreclosed on in June had associated mortgages that were taken out in the years of 2005 to 2007.
Foreclosure Defense Attorney
While foreclosures may be on the decline overall, this news story makes clear that many people are still struggling with such actions across the country, and particularly in the state of Florida. If you or someone you know is facing foreclosure, do not feel you have to face the lenders alone. At Hoffman, Larin & Agnetti, P.A., our dedicated team of lawyers have experience handling foreclosure defense cases and can assist you as well. Contact us today to schedule a consultation to discuss your case. We serve clients in Dade, Broward, and Monroe County.