Orlando Florida’s foreclosure rate for October jumped by 12.58% from the previous month with 1 in every 579 housing units in foreclosure, slightly worse than the national rise of 12% for the same period. Tampa at 1 in every 543 is rated as number 10 in the nation.
Because it is the start of the last quarter of the year October is frequently a month which sees a jump in these activities as lending agencies try to clear these liabilities from the portfolio before the end of the year. Even with that this year’s jump of 12.58% is more than double the usual jump of around 5% in previous Octobers.
Some of that is certainly due to the persistent underlying weakness in the economy with more people than ever simply giving up the search for work. A closer look, however, also reveals that housing sales are raging in Tampa as they are in most of Florida, inventories of houses are low, and prices for houses have increased dramatically, and are projected to continue to do so. So why the dichotomy?
Florida was one of the states hit the hardest in the collapse of 2008. Over the next couple of years many homes went into foreclosure. Foreclosures and short sales ruled the day for months and lending requirements were dramatically tightened. Lending agencies were losing money at alarming rates, particularly in the secondary markets where mortgages are sold. As a result a new housing market ballooned in its existence. Mortgage companies filed an instrument called a Lis Pendens was filed indicating the intent to foreclose, but owners were told explicitly or implicitly that it would be a while before the foreclosure would actually take place. The owners were able to stay in the house without making payments for a period as long as they kept the property in good repair and paid taxes, insurance, utilities, and HOA fees. It was a good deal for both entities.
Now with rising house prices have risen significantly, and interest rates still low, there is a booming real estate market, and the time is right for those properties to be put on the market and sold so that the lending agencies’ losses are minimized and the companies’ balance sheets look very good by comparison to 5 or 6 years ago or even two years ago.
Savvy buyers may now be able to take advantage of this influx of foreclosures onto the market. Banks will no longer give them away on one hand, but they are now anxious to get them off of their books before the end of 2015. Prices should be good for these properties and interest rates which appear to be poised to increase are still at near historic lows. Real estate professionals will be able to help steer you to these properties available in your area. Below are the Orlando Foreclosure homes for sale.