When the nation was slammed by the burst of the housing bubble, South Florida wasn’t able to escape the ramifications. Property values plummeted throughout the state, forcing many homeowners to seek a mortgage loan modification. This allowed them to avoid delinquent payments or foreclosure.
While banks were not initially amenable to these changes, many have since come to the conclusion that it is better to work with borrowers to keep them in the home than it is to have a bank-owned home sit empty.
Now the housing market is showing many signs of recovery, albeit at almost a snail’s pace. But recovery is still recovery, and some people are looking at Florida’s slow but steady rebound as a prime buying opportunity.
The bad news, according to a recent report, is that Florida has some of the highest costs for obtaining a mortgage and successfully completing the application and closing procedures. According to the report, buyers in Florida pay approximately $4,395 for the entire process — about $650 more than the national average of $3,747. When compared to the other 49 states, Florida’s costs come behind only New York, Texas and Pennsylvania.
However, even though it might cost a bit more to get a mortgage in Florida, the reward can be worth the risk. Some properties in the state, particularly in South Florida, are seeing their value rebound quite quickly. If a buyer wants to get into the real estate market now, confronting the higher costs could pay off handsomely if the value of the property in certain areas continues to climb.
Source: Orlando Sentinel, “Florida mortgage costs near top in U.S.,” Mary Shanklin, Aug. 6, 2012