Foreclosure Crisis
There is a danger of another wave of foreclosures hitting South Florida, according to Blomquist from RealtyTrac. RealtyTrac reported that nearly 38,000 Broward homes were in some stage of forelcosure during the first half of 2010.
FOR IMMEDIATE RELEASE
iNewsConnect.com (Press Release) – July 20, 2010, Hollywood, Fl – There is a danger of another wave of foreclosures hitting South Florida, according to Blomquist from RealtyTrac.
He argues that this could be triggered by strategic defaults due to the fact that 44 percent of single family homeowners in South Florida are now underwater.
RealtyTrac reported that nearly 38,000 Broward homes were in some stage of foreclosure during the first half of 2010. While this is ten percent down on the previous six months, the number of homes that the lenders are repossessing is up.
Everybody was hoping to get a principal reduction on their mortgage. Obama’s loan modification program was touted by many as a solution to this crisis. Homeowners are now discovering that they were not able to qualify for the much heralded loan modification schemes and are letting their homes go.
The lack of accurate information out there is of great concern. People are either given false hope of some sort of government program or a short term solution such as foreclosure defense or just let the bank take their home.
Banks are offering homeowners a few thousand dollars to give the home back via a deed-in-lieu, but homeowners don’t realize that this could hurt their credit as much as a foreclosure. It could stop them buying again for five or more years as well as cost them thousands of dollars in increased car payments.
Homeowners need to make sure that they take action that will get their credit back on track the fastest, such as a short sale and make sure that they will not get stuck with a deficiency judgment or forced to sign a promissory note.
In a short sale, the homeowner can sell the property at a low price in order to get it sold fast. This enables them to get on with their life, fix their credit and be eligible to buy another home in as little as two years. If they buy again, their mortgage will probably be half what it was before.
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