Florida Bank Repo Homes Posing Serious Problems

Florida State is in the southeastern part of USA and projects like a finger into the ocean with the Atlantic on one side and the Gulf of Mexico on the other. Florida is known as the Sunshine State for its balmy weather and bursting prosperity. In 2007 the GDP of Florida was $734.5 billion making it the fourth richest state in USA. In personal income it ranks 20th in the country. Tourism dominates the economy with a major role being played by Walt Disney World Resort. Next in importance comes agriculture followed by mining and other manufacturing units.

Today Florida seems to be running reverse gear with fame turning to notoriety. Florida has the dubitable distinction of being one of the top states with the highest number of foreclosures. As a consequence the landscape is dotted with Florida Bank Repo Homes. The close of the third quarter of 2008 saw Florida rank first in the country in the number of delinquencies. 7.8% of all the mortgages had become delinquent. In 2009 a list shows Florida as the highest hit in the real estate market. 2000 had seen housing boom that was followed by the bust. Today in 2009 Florida has been left with 300,000 vacant Florida bank repo homes as per state records.

By Florida bank repo homes are meant those homes that have been taken over or repossessed by the lenders, mainly the banks, after borrowers failed to be current on their mortgage payments. The numbers of Florida bank repo homes are so staggering that it is requiring federal interference to try and sort out the problem.

In the first quarter of 2009 foreclosures continued to surge with Florida ranking among the toppers according to Mortgage Bankers Association. In California, Florida, Nevada and Arizona the rate of residential units entering foreclosure has gone up to 2.45%. Jay Brinkman of the association said, “Those states account for about 46% of the foreclosure starts in the country and represented 56% of the increase in foreclosure starts, including half of the increase in prime fixed-rate foreclosure starts. It is difficult to overstate the severe impact home price declines have had on mortgage performance in those four states.” In Florida 10.6% of the mortgages are in some stage of foreclosure.

The sales of new homes have not improved. It is only this picking up of sales that can save the situation which is spinning out of control as the recession lingers.