Foreclosure reign in sight

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

By James Thorner, Times Staff Writer
Published July 13, 2007

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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."

James Thorner can be reached at thorner@sptimes.com or (813) 226-3313.

Gains in homeowner pain

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

 

1st quarter	2nd quarter	Percent change
Arizona	12,500	17,194	+ 37
Florida	64,125	78,408	+ 23
Texas	28,000	31,920	+14
California	86,308	83,210	-7

Source: Bargain.com