Florida had a higher mortgage delinquency rate than every other state in the country other than Nevada. However, nationally, less Americans were late with their mortgage payment. But more people in Miami were selling their homes at a loss.
As reported in the South Florida Business Journal, the ratio of borrowers 60 days or more past due declined to 6.77%, in the last quarter, compared with 6.89% in the fourth quarter of last year. This statistic is traditionally seen as a precursor to foreclosure filings.
Nevada had the highest delinquency rate, at 15.98%, followed by Florida, at 14.65%. However, Florida is expected to experience the highest mortgage delinquency rate by the end of the year, some say reaching as high as 18.2%.
As we previously noted, those that fell into foreclosure typically had one more reason other than a job loss or bad loan. Indeed, many are even pursuing ‘strategic defaults’ on their loans. And in certain situations, banks are pursuing the borrower for the deficiency.
As a result, the real estate market is seeing increased activity as many are actively trying to ‘unload’ their real estate. Coupled with the extension of the home tax credit, home sales in Miami-Dade County, Broward County, and Palm Beach County, combined, increased by 48.3% in a year over year comparison.
While the increase in home sales, coupled with the decrease in delinquencies, may appear to be all favorable news, it should be noted that more than half of all homes sold in Miami-Dade County last quarter were sold at a loss. Consequently, it comes as no surprise to learn that more than 40% of all single family homes in Miami were underwater with their mortgage at the end of the first quarter.
Although the market for selling a home is slowly improving, the price a homeowner can get for that home continues to decline. Therefore, please contact our office today to discuss your real estate options during these turbulent times.