Bank Owned Homes in Florida

Florida

Florida is a finger jutting into ocean in southeast USA. On one side is the Atlantic Ocean and on the other the Gulf of Mexico. It is nicknamed the Sunshine State – being a paradise on earth. Today it has earned another fame as the foreclosure capital of USA with countless bank owned homes in Florida.

The sub-prime mortgages have been linked to the increase in bank owned homes in Florida. Many experts blame demographics for spike in bank owned homes in Florida. But as in 2000, the figures show 82% of the population is White while 16% are Blacks. There are more reasons than one behind the problem of bank owned homes in Florida.

Economy is another factor behind the crisis of bank owned homes in Florida. Florida always had a booming economy with tourism contributing greatly to its coffers. The GDP of Florida in 2007 was $734.5 – making it the fourth richest state of USA. In personal income it ranked 20th with a per capita of $36,665. Many opine that it is this prosperity that lured in many investors to speculate in housing. Sub-prime mortgages flooded the market. Loans were given out without checking incomes and at initially low interest rates. Sometimes even down payments were waived. But when the lenders began to collect their pound of flesh and interests began to increase thousands defaulted. There were so many that the units could not be sold at the court auctions. This led to sudden increase of bank owned homes in Florida. These bank owned homes in Florida are now lying vacant and derelict.

The bank owned homes in Florida are the result of these failed auctions that are held at the end of the foreclosure process. In Florida the process is judicial. It takes about five months for the course to run its length.

Most of the bank owned homes in Florida are in south Florida – a region that has been worst hit by the crisis. Unemployment has complicated matters. Without salaries people cannot be current on their mortgages. Food and bare survival take top priority.

In Broward County there were 47,387 foreclosures in 2008 – a 128% increase over the numbers of the previous year, 20,807. This does not make prospects bright for 2009. Broward County ranked 6th in foreclosure rate with 1:17 houses being taken over by the banks. In Palm Beach County there were 23,339 foreclosures – an increase of 97% from 2007.