Miami’s Foreclosure Process is a Major Hurdle in a Improving Housing Market

foreclosure 00a.jpgFlorida’s foreclosure process is a major hurdle in a slowly improving housing market. Today Florida has the highest rate of mortgages that are behind by more than 90 days. The national average for mortgages which are behind more than 90 days is currently at 5.6 percent. However, Florida is at a whopping 13.3 percent, over twice the country’s average. Florida had 103,000 residences that were auctioned or taken back by lenders over the past year. That total means that the state accounts for 8.8 percent of the foreclosure inventory, while the next highest state is at 6 percent. Many believe that the reason for this extremely high average is the states lengthy foreclosure process.

Due to the astonishing number of foreclosures and Florida’s current foreclosure process, homes are not making it back onto the market in a timely manner. Many of the banks or lenders who foreclose on these properties are unable to put them back on the market, because these residences continue to be occupied. The current process, which must go through the courts often times gets delayed to allow residents to try and hold onto their homes.

The homeowners/renters of these properties are causing an increase in price for the properties that do make it on the market. It is believed that if more properties from foreclosure are out on the market, it will balance out the high prices that are currently taking over the market.

There is a direct correlation between Florida’s foreclosure process and the continuing struggles with foreclosure that cripple the housing market. Since the state has the slowest process in the country, Florida is continually crowned with the highest percentage of foreclosures.