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.
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.
When people are having financial problems, they may see a possible foreclosure looming in the near future. But, oftentimes homeowners do not begin thinking about what other options may be available to them until it is too late. Recognizing that they are having a tough time financially and recognizing this fact early may allow homeowners to explore all available options before a foreclosure action commences.
Over the last several years there have been far too many Americans who have had to experience the uncertainty and flat-out fear associated with foreclosure. Florida residents are especially familiar with this problem, as the state was one of the hardest hit by the housing bubble "bursting." Despite occasional reports about economic bright spots, both in Florida and nationwide, there really hasn't been all that much good news for American workers and homeowners lately. However, with the South Florida housing market on the rebound and Florida residents overall trying to bounce back themselves, every little bit of good news can help.
Amid the continuous stream of positive reports concerning the South Florida real estate market, it can be hard to remember that there are still millions of people in America who are facing problems dealing with foreclosure and delinquent payments. According to a recent report, however, this problem may hit closer to home than many of our readers realize.