For months our South Florida readers have probably gotten used to seeing nothing but good news about the residential real estate market in the local area. Indeed, there has hardly been a month where the real estate data and figures gave anyone involved in the real estate market a reason to pause and think about any negative factors to consider. But, on the other hand, many of our readers probably also know that Florida was one of the states that was hit the hardest by the bursting of the so-called housing "bubble." So, perhaps it should come as no surprise that foreclosure actions are still a problem throughout the state - including in South Florida.
According to a recent report, the local area saw a ridiculously large increase in the number of foreclosures this year in one particular area - multi-million dollar homes. The report indicated that the 47 foreclosed homes in what is considered to be the "high-end" market - in the over $5 million dollar range - was a nearly 500 percent increase in this area over the number from last year. That rate was tops in the nation, including when compared to many other large metropolitan areas.
Most people probably wouldn't think that someone living in a multi-million dollar property would have trouble with their mortgage payments, but obligations to banks are sometimes similar no matter what the value of the property. Delinquent payments and fears of foreclosure are problems for many types of borrowers.
So what are the options for someone facing these kinds of financial problems? One option could be a mortgage loan modification. Many lenders find that it is much more preferable for a homeowner to remain in a property under some kind of alternate arrangement - rather than the bank having to take over possession and then have the property sit empty.
Source: South Florida Business Journal, "South Florida leads nation in high-end foreclosures," Shaun Bevan, Dec. 4, 2013