Fort Lauderdale Foreclosures Dramatically Increase in Third Quarter of 2006
Did you know that Fort Lauderdale foreclosures for the third quarter of 2006 increased by 86.53% when compared to second quarter totals?
According to figures compiled by MSN, there were 8,431 Fort Lauderdale, Florida foreclosures from July through September. That's roughly one Fort Lauderdale foreclosure per 88 households in the city. When compared to the national average, Fort Lauderdale foreclosures are 4.132 times higher.
What has led to this dramatic increase in Fort Lauderdale foreclosures? Experts attribute the increase to the slumping Florida real estate market, the growing reliance in recent years on subprime loans and adjustable mortgage rates, and higher living costs in general.
According to a November story in the Sun-Sentinel, Fort Lauderdale and other cities in Broward County are realizing the impact of the housing slump in which the supply of homes is outpacing buyer demand, affordability and confidence.
The Sun-Sentinel story states that Broward County home sales are down and that average selling prices are continually dropping from month to month and annually.
As Fort Lauderdale and other South Florida homeowners are struggling to sell at their original listed prices and their homes sit on the market declining in value, homeowners are really feeling the crunch.
This problem is compounded by the fact that a lot of these homes were financed by shorter-term, adjustable mortgages during the housing boom. In fact, the Mortgage Bankers Association recently estimated in a Miami-Herald story that subprime loans make up 12-15% of all loans.
While seeming like good deals allowing people with less than stellar credit histories to purchase a home at the time, subprime loans often allow mortgage lenders to charge higher interest rates on payments in the future. The terms of these loans also often make it difficult or expensive to refinance, leaving homeowners with large debt and few options.
onsequently, it is no surprise that so many Fort Lauderdale foreclosures are taking place as many people can not adjust to rising payments and fall behind in a short amount of time.
While Chapter 13 bankruptcy, refinancing, debt workout plans and other options may stop foreclosure, Fort Lauderdale homeowners have obviously had a hard time doing so recently.
With the market saturated with new homes and older ones just not selling like they used to in South Florida, even putting a Fort Lauderdale home up for sale to avoid foreclosure is a difficult prospect at the moment.
Is there any relief in sight for Fort Lauderdale and nationwide foreclosures? With homes struggling to sell nationwide as well, it does not appear so for the meantime.
Fort Lauderdale homeowners who are having trouble meeting their mortgage payments should explore their options as quickly as possible. Often, homeowners don't seek help until their homes are already in foreclosure, but the earlier a homeowner begins to plan and educate himself, the more options will be available.