• George Wolf
• Aug 13,2010
• In: Foreclosure

Foreclosure Rates in Manatee County

Florida is known for sun, sand and with the latest housing downturn, foreclosures. Any improvement in the foreclosure rate is seen as good news. During the month of August, the number of filings for foreclosure dipped slightly compared to the record setting levels of July.

There have been a total of 3,616 foreclosures for the year as reported by the County Clerk of Court. During the month of August, 456 filings of foreclosure were executed. This is down from the all-time county record level of 502 filings during the month of July. As a comparison, there have already been close to 1,000 more foreclosures filed than during all twelve months of 2007.

Mortgage lenders are hoping that this drop from the record level indicates the worst is behind the county, and that the market may begin to recover from its nosedive. As with all aspects of real estate, there will need to be several months in a row of declining foreclosure rates to establish a new trend.

Although most of the actively sold properties are foreclosed properties, according to realtors, property values are still holding above the state average. Homes sold in Sarasota and Bradenton averaged $230,100. Home buyers are learning that a foreclosed property still holds value and will not be given away. Realtors have reported it is difficult to work with buyers who think that a foreclosed property will be sold at extremely low prices.

Unfortunately, it is not just the unfortunate homeowner who is hurting in this downturn. Banks are also experiencing economic difficulties and cannot liquidate homes at rock bottom prices. Although some homes are sold for less than the loan, banks in Manatee County have not sold houses for half of the going market rate. Realtors have reported that buyers have tried to make banks offers on foreclosed properties that the realtors know the banks cannot and will not accept.

Legislators in many states have passed laws mandating that mortgage lenders try to prevent homes from entering foreclosure. It is notable that Florida has not passed any protective legislation.

The FHA has announced that it will begin a new lending program starting in October that may allow struggling homeowners to refinance their loans. This program will also help in selling properties that have entered foreclosure. The FHA stated that there is a great deal of interest in this program, as well as many calls asking questions about how the program will work.

The FHA program will not help with closing costs. Homeowners who have properties that have been foreclosed usually unable or unwilling to pay the selling closing costs. The buyers are then required to pay the total closing costs for both the buyer and seller. Many of the potential buyers are already stretched to make a down payment.

This added complexity makes it even more challenging to buy a property. There is a bond program that Benchmark is offering that may assist buyers with their down payment. Some qualified buyers may receive assistance for houses up to $400,000.

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