Florida Foreclosures: Some of the Highest in the US
Thanks to the real estate boom several years ago that raised the prices of homes considerably and the population increase Florida foreclosures are some of the most abundant in the US. There are areas of Florida where the foreclosure rate has caused more than a quarter of the available homes to be vacated. This is a serious problem for the economy of these areas of Florida.
What is the Cause of Florida Foreclosures
The biggest cause is that homes have lost their value. Several years ago, the housing industry in Florida has a huge increase in prices. Housing prices were grossly inflated and people bought them taking out huge mortgages. The market settled and then reversed. As a result there are thousands of home owners who are now paying for a mortgage on a home that is worth only a fraction of what they paid for it. With the inflation of the economy and other harsh economic factors people can no longer afford these homes. As a result of this Florida foreclosures have gone through the roof.
The result is a rising level of vacant properties and a drop in the building rate. The real estate market is a good way to judge the economic situation of an area and it does not look good for Florida. There are some advantages to these Florida foreclosures for those that are interested in gathering investment properties and are willing to wait for better economic conditions.
Thanks to the rising rates of foreclosures, the lowering interest rates and the willingness of real estate agencies and banks to get rid of the properties that are piling up and see some benefits from them investors can get property for sometimes significantly less than the current market value. This makes for good rental properties or for good turn around locations.
The only difficulty with this plan is the fact that most investors will have to wait several years to see a return on these properties because of the economic situation. However, if they are in a position to be able to do something of that nature than getting in now is a good idea.
With the low interest rates and lowering home prices this is a good opportunity to get in with Florida foreclosures. The important thing to remember is to not over extend and to keep in mind that it might be several years before the property values are high enough to see a decent profit from the reselling of property. Rental properties too may have a small wait until the population grows again.
