Orlando Area Real Estate News

The largest indication that the region’s and the state’s mortgage despair is far from over is the recent spike in the number of property owners defaulting on their home loans. In the seven counties surrounding Orlando, the number of monthly loan defaults recorded in court has jumped from 611 in January to 3,181 in August. Statewide, monthly loan defaults increased from 2,919 in January to 18,676 in August. According to Mortgage Bankers Association data, in Florida, one in every 33 homeowners with an adjustable-rate loan was in foreclosure as of June, compared with less than one in every 100 homeowners with a fixed-rate loan. Florida buyers who used sub prime loans to finance their purchase have been 10 times more likely to lose their property than homeowners with conventional-rate loans, according to MBA data. Even some homeowners who built up some equity are losing their dwellings because they took out second mortgages to pay such things as credit-card debt buy new toys and finance things that were once considered out of reach. Whatever the reason for falling behind, a homeowner who misses three monthly payments faces added bills that include lender’s fees, court costs and other expenses. The average $1500 monthly payment once missed will increase and compound monthly. By the third month as much as $5500 depending upon applicable surcharges, late fees and interest. Most homeowners do not seek financial assistance until it is too late. Options exist and lenders are readily available but, if notified too late they are more than likely to not comply.

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