The Foreclosure Wave is Nowhere Close to Ending
A new record high of homeowners delinquent on the mortgage or foreclosure was reached in the third quarter. Rising unemployment and balloon and teaser rate mortgages coming due through 2011 means that foreclosures and short sales are likely to continue through 2011-2012.
A survey by the Mortgage Brokers Association (MBA) reports 9.6% of borrowers who are delinquent on their mortgages, and 4.5% at some stage of the foreclosure process. So about 14% of mortgage loans are in trouble. That’s a big number. The MBA survey started in 1972, and this is the highest level recorded during its history.
What Does That Mean for Daytona Beach Real Estate?
Florida, including Daytona Beach and Volusia County have been very hard hit by foreclosures. While much of the nation was seeing lower month over month foreclosures rates, Volusia County was up 3%, or 1500 properties, in October.
For Daytona Beach home and condo buyers, this means continued short sale and foreclosure purchase opportunities. For sellers it means that while prices have stabilized somewhat, we are unlikely to see price increases in the coming years.
Most of my sales this year have been from distressed properties. Tremendous short sales and foreclosures buys are available for the patient buyer. I’ve gained a lot of experience in dealing with banks and it’s some of the hardest work that I’ve done. It takes a lot, and I mean a lot, of follow-up. But, that’s the business now and that’s what people are buying. If you want to know more, give me a call at 386-566-7503.