Most indicators show that the national housing market is improving. But, in Florida, the recovery is probably going to take longer for the state overall. Any of our readers who are familiar with previous posts here know that the South Florida area is doing better than most, but the rest of the state isn't having the same luck. Hundreds of Florida homeowners face the threat of foreclosure every day because they still have trouble paying their mortgage.
Many people have found themselves in a situation where they need to reevaluate their finances. Sometimes, this is due to an unexpected issue, like the sudden onset of a medical condition, or the loss of a job. However, many times people can see the problem coming. Maybe they are spending more money than they are making, and it is going to catch up with them down the line. For some people, a mortgage problem sparks the concern as well as the need to take proactive steps.
It's no secret that Florida was one of the states that was hit the hardest by the "burst" of the housing bubble several years ago. Like the rest of the country, it has been a long slog to recover value for homeowners throughout the state. And, for many, paying the monthly mortgage payment is still a serious concern. Foreclosures remain an issue in Florida.
Tens of millions of Americans have a mortgage. Many of our readers probably have a mortgage on a piece of property in South Florida. And most people understand the basic premise of what a mortgage is, which is a loan from a bank or other lender that helps a person buy property, resulting in monthly payments made on that loan over the course of about 15, 20 or 30 years.
When it comes to be time for a South Florida resident to apply for a mortgage, there are quite a few things to check off the to-do list. After all, a mortgage is probably the biggest loan that an individual or a couple will ever take on in their lifetimes. As a result, lenders require a lot of documentation that proves that the borrower can make the monthly mortgage payment without fail.
Many of our South Florida readers make a monthly mortgage payment. But does everyone know what all is accounted for in that monthly payment?
As previous posts here have mentioned, foreclosures remain a problem for the national housing market, and the South Florida area is not immune to this issue. Although many real estate markets throughout the country are recovering from the plummet in property values that took place a few years ago, there are still too many homeowners who are struggling with their monthly mortgage payment.
Many of our readers may have seen a previous post here that detailed how delinquent payments on mortgages are still a major concern in the South Florida real estate market. This is despite the fact that the local real estate market has experienced a rebound in the last few years that is nearly unmatched in the nation. The news on delinquent payments and foreclosures, however, may be worse than what was previously thought.
There are many different ways to measure the health of a recovering real estate market. Mortgage giant Freddie Mac uses something called a "Multi-Indicator Market Index," also known as a MIMI. This index looks at four different factors to assess the health of the real estate market in any given area: applications for home purchases, employment in the area, the affordability of real estate and the level of mortgage delinquencies.
Most of our South Florida readers are probably familiar with the general process of a foreclosure. This is the process by which a mortgage lender can seize the home of someone who is not keeping up with their monthly mortgage payment and, as a result, the lender makes the determination that it is a better option to take over ownership of the property itself rather than to try to work out an arrangement with the delinquent borrower. However, there is another process that our readers may not be too familiar with: the deed in lieu of foreclosure process.