Orlando Area Real Estate News

Nearly twice as many people face losing their homes in Central Florida this year compared with 2006 mostly due to the high volume of investors that purchased property and adjustable rate mortgages. The hardest hit county in the area is Osceola, with more than triple the number of defaults compared with 2006. All other counties in the Central Florida region have more than doubled. Communities with widely divergent income are affected and the aspects of the communities also vary. The ZIP codes most-affected range from Taft and south Poinciana, to Windermere and Davenport. Public auctions are becoming more popular as Single-family homes Dominate as 9 out of every 10 homes are up for bid. You may wonder what is going on with condominiums well they are running a distant second, with about one in every 20 defaults comparatively. Experts say the blame lies on builders for overbuilding, investors trying to make a quick dollar, a flood of amateur real estate agents ill advising buyers, buyers over extending themselves, faulty loan practices, and too many resort-home subdivisions. Now, with home prices dropping, many first-time owners have no equity with which to refinance their mortgages, and investors who had hoped for a quick and lucrative resale cannot sell for what they must repay. More than 12,000 homeowners in a seven-county area throughout Central Florida have started the foreclosure process by getting behind on their payments and going into default. This is up by more than 85% compared to the year prior.

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