Business: Foreclosure reign in sight

When it comes to home foreclosures, California, land of the million-dollar Silicon Valley shoeboxes, tends to dominate the list.

But in foreclosure statistics released this week by Bargain.com, Florida is making a run on California's dominance.

With less than half of California's population, Florida had 78,408 homes entering the foreclosure process in the second quarter of 2007. California was slightly ahead with 83,210 homes.

Trends suggest that while California foreclosures might have peaked, Florida is poised for more pain.

Compared with the first quarter of the year, 7 percent fewer California homes flirted with foreclosure in the second quarter. The opposite was true in Florida. The Sunshine State reported 23 percent more foreclosures in the second quarter than the first.

Nationwide, about one in six homes entering foreclosure was in Florida. Slumping sales, combined with a glut of homes bought on speculation during the 2004-05 boom, have left properties vulnerable to bank repossession. Exploding taxes and insurance premiums make monthly house payments even less affordable.

Bargain.com, a California company that makes money selling lists of distressed properties, suggests that foreclosures may have peaked nationally in the first quarter. Thirty-four of 50 states reported fewer homes entering foreclosure in the second quarter.

But aside from California, Sun Belt states coming off the boom continue to suffer. Arizona, Nevada and Texas joined Florida near the top of the foreclosure list.

Ann Guiberson, head of the Pinellas Realtor Organization, sees a glimmer of hope in California's improvement. That state tends to be a national leader that Florida eventually follows.

"Florida follows a different drummer. When a lot of markets were down ours was still up," Guiberson said. "Now when others are bouncing back, we're probably trailing a little further back than some."

In Florida, the number of homes entering the foreclosure market is still on a sharp upswing.

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by Lee	07/23/07 01:36 PM
When Ann Guiberson said that FL follows a different drummer, the comment was right on target ! For years Fl was underpriced as compared to the rest of the nation, then came the investor/speculators,the incompetant lenders and huge tax increases !

by Helen	07/22/07 10:08 AM
Every action has an equal or opposite reaction. We need to STOP crying and pool together to solve the MESS. Let us all make it our civic duty to make Florida a better place for our kids now. Orzanization need to do their research verified by facts

by pat	07/21/07 10:18 PM
ive read all the comments and each is true. housing, ins.taxes are all hitting the moon. greed trickery by realtors banks. dont believe their #'s. and what are the states going to do when we all sell (or lose) and no one pays property tax?rents go up

by Richard	07/20/07 05:23 PM
Yeah, on the sign: There's no way that trespassing is considered a felony in any state, nor would petty theft.

by John	07/20/07 01:10 PM
In California banks owned thounsands of foreclosure properties, they don't know what to do with it yet, also about $2 trillion of ARM will reset at the end of 2007 and another $2 trillion resets in 2008. Biggest clearance sale of the century.

by K	07/20/07 10:59 AM
Everything is based on your credit worthiness, if your divorced,accidents, medical history. So no matter what state you are in. Sooner or later your auto, homeowners or anything else will be judged based on a # and people like us doing the judging.

by concerned	07/20/07 10:49 AM
The way things are run in Fl are rediculous in the 1st plc. no cost of living increase, sky rocketing insurance, gas, and mortgage co's allowed to sideline the rules to get people so far in debt they lose everything. Maybe everywhere is the same ??

by kelly	07/20/07 10:39 AM
Sad but true we are all in the same sinking ship. Some are going down faster then others. And until the state and/or government steps up to really do something for us on their own time and Every state will have their own Titanics lost a drift.

by beth	07/19/07 04:03 AM
The other thing I would like to know is who in pasco county makes enough to buy some of these new homes 200,000 . Not any one who works for pasco county thats for sure !!

by beth	07/19/07 03:59 AM
My father was from in the days of the depression he always said your rent or mortgage should never be more than 25 to 33% of your monthly income. Because with other bills, car, insurance, food clothes and savings you will be over extended.

by Tom	07/14/07 12:32 PM
I am a mortgage broker who has helped or in some cases hurt home buyers with adjustable mortgages. At the very beginning if my potential buyer was not a strong credit risk I would fully disclose potential inc in pmts they took a chance we all lost

by Ginny	07/14/07 09:09 AM
I agree with Kitty. Don't take on a payment that you know you can't afford to pay back. Even though the lenders state you can afford a higher priced home, only you know what you can pay each month. Don't exceed a future salary expectation.

by hank	07/13/07 08:14 PM
Doe, How many other folks are thinking the same thing? Go out of state buy a house and let the one in florida go back to the insurance and tax collectors. I see several homes in my own block that are empty and have been for sale for close to a year.

by LG	07/13/07 05:47 PM
Don't forget that insurance prices are based on a person's credit-worthiness; thus, if your credit is bad, you pay higher rates.

by carol	07/13/07 05:11 PM
God what ever happened to personal responsibility! It's Crist's fault, no it's the lenders, the ins. cos., the immigrants, greed. WahWahWah. What a bunch of cry babies. Itò019s the fault of people trying to live above their means. Wake up.

by jackie o	07/13/07 04:04 PM
Insurance is nothing more than betting against yourself. Pay off your mortgage as soon as possible, then you don't need it and no more interest either. You don't need the biggest home you can afford.

by Joanne	07/13/07 03:53 PM
Gov Crist long time Floridians can't afford to live here any longer. Average low paying jobs with this increases is putting people of this great state in jeopardy, and the senior citizens are going under. HELLO?

by Joanne	07/13/07 03:49 PM
Gov Crist campaighn to lower home insurance =and straighten out this tax fiasco. IT HAS NOT HAPPENED. Insurance has gone up Save our Homes is in jeopardy. All levels of home owners are affected. Vote the bums out!!!!!!

by Kitty	07/13/07 03:31 PM
A good rule of thumb is to not take a mortgage that is more than 2 1/2 times your income. According to that rule, I can afford $225,000 but lenders tell me I can afford $320,000. Hmmm, who do I trust?

by Kitty	07/13/07 03:29 PM
BTW AJ, what is a "city tax official"?

by Dallas	07/13/07 02:59 PM
I think the astronomical rise in taxes and insurance in Florida are to blame. The average person with a fixed rate mortgage is likely having their biggest struggle paying taxes and insurance. Sorry Ann Guiberson, but this glass is not half full.

by Sandra	07/13/07 02:59 PM
Seems all you think about is the investor. I am losing my home to F/C because I am now disabled plus, my ins. and taxes caused my mortgage payment to go from $1300 to $2500 per month. This increase plus the drop in $$$ has killed me.

by Calvin	07/13/07 02:59 PM
JT, wtf! Female driven emotion? Since when is a problem with the housing market Female driven emotion? Housing affects us all and if there are too many foreclosures resulting in even more houses that can't be unloaded, the whole housing market tanks.

by other joe	07/13/07 02:59 PM
haha , daredevil spending ...funny quote , aweful movie ...

by Trellis	07/13/07 02:29 PM
Continuation...Earlier this year I was notified my homeowners was canceled. New policy $2600. Taxes increased to $1600. All in all my $654 payment is not close to $1200. Needless to say, I may be on the foreclosure list soon.

by Trellis	07/13/07 02:27 PM
I purchased my home 12 years ago. My mortgage was $654. Six years ago my company closed and I went from 40K to 27K a year. I drove a 10 years old car that was paid for and in great condition. My cars was totaled not my fault, now I have a carnote

by AJ	07/13/07 02:12 PM
Plain and simple folks! What we are all witnessing is the unfolding of a great scam all caused by GREED! Greedy banks and Mort.Brokers, Realtors, Speculators, Builders, city tax officials and overleverage home buyers! No need for all the hypothesis.

by JB	07/13/07 01:02 PM
The only people to blame are the borrowers. Whether they were "investors" hoping to flip for a profit, using a variable rate mortgage to buy more house than they could afford, or taking out second mortgages to buy expensive cars and boats, etc.

by ron	07/13/07 01:01 PM
What about the Save Our Homes legislation? Has Crist done anything with that?

by DougD	07/13/07 12:41 PM
Joe has it right. These profiteers deserve every last foreclosure. They are the cause of the inflated home prices to begin with. If they were willing to sell at just market value there would be no need to foreclose.

by Paul	07/13/07 12:38 PM
Banks are in the money business, they loan and charge interest to make money. It is not a charity or a Gov. hand-out, I'm sure the banks work very hard to make it work for the homeowner. I bet most of these have been behind for quite a few months.

by rupert	07/13/07 12:15 PM
Lenders should offer to refinance at market rates and give 40 yr amortization to mollify the losses of foreclosure to clients and finance companies.

by Linda	07/13/07 12:14 PM
Both buyers and brokers are at fault here. They were both greedy. The buyer should know if he/she can afford the home they are bying Duh? Brookers fast talked the buyers to get the morgage. Just In the end they both got the screw.

by Joe	07/13/07 11:08 AM
As for the investment speculation... Greed is getting some what they deserve. No pity from me. Just like Vegas, if you cannot afford the loss, you should not gamble. Helping these folks out would only encourage more daredevil spending in the future.

by Joe	07/13/07 11:05 AM
Um, Mike...the root of the problem is referred to as living beyond your means. The lenders are at fault. The loan should never have been given in the first place. Not everyone can live in the "house on the hill".

Foreclosure reign in sight

California still leads in raw home numbers, but Florida is quickly closing the gap.