According to various reports that have come in, the last quarter of 2007 has been really bad for the Florida foreclosed homes. For the last quarter, the rates have jumped by 5%. Some of the counties are hit harder than the rest. Lee County has seen the increase in Florida foreclosed homes by more than 25%. While other counties have also seen a decrease in the Florida foreclosed homes. real estate market is quite volatile. With the prices of the Florida foreclosed homes coming down by 20% – 50%, there are many prospective homeowners who are looking to wrap up home deals. These houses were way of their budget and they can now afford to buy these houses.
Sub prime lending for the mortgage loans hasn’t hurt the markets and banks in the US alone. In fact because of Florida foreclosed homes and other foreclosures coming through from all states, foreign banks have also taken the hit. The lenders are looking t fix lower interest rates. This they believe should provide some relief to the delinquency and foreclosures in the state.
Looking at the Florida foreclosed homes, many of the lenders and banks are looking at tighter lending practices and market corrections to ensure that such situation doesn’t arise again. Some lenders are looking at principal reductions for the mortgage loans of the Florida foreclosed homes. This can restore some of the equity for the homeowner.
In fact the problem is getting worse for the owners of Florida foreclosed homes. Many of them have also taken payday loans. Payday loans carry almost 400% interest. The borrower promises to ay back the next day. With the market so volatile, these small loans can wreck the local economy and also affect the real estate market.
The real estate market estimates that here are 2 million units’ vacant unsold houses at the end of 2007 throughout the market. This vacancy and increase in foreclosures will bring down the prices. This has also been stated by the Fed chairman Ben Bernanke.
