RealtyTrac reports that Florida led the U.S. in foreclosures for 2012 and local real estate analysts believe this is a major reason why foreigners are so interested in snatching up property in the Sunshine State. Although foreclosures have been slowing since 2010 because of tighter regulations and legal action against banks for foreclosure malfeasance, Florida still racked up 50% more in 2012 than in the previous year because the opposite has been true of states that primarily use a judicial process for foreclosure. Experts expect these types of foreclosures to continue increasing in these states, at least in the near term. For more on this continue reading the following article from JDSupra.
There isn’t far to look when investigating reasons why real estate investors all over the world are looking at buying property here in Florida. Some foreign investors, as we pointed out on Tuesday, are doing this via the web, closing deals on real estate sight unseen, they are so interested in grabbing up bargain real estate here in the Sunshine State.
Today’s RealtyTrac Foreclosure Market Report explains one of the big reasons why international investment dollars are flooding into our local economy via all the foreign interest in buy real estate here. Florida, according to RealtyTrac, led the entire country last year in the number of foreclosures began during the past twelve months.
The rating tallies any mortgage that received anything from a Notice of Default to final repossession and sale of the property. According to RealtyTrac’s analysis:
- 1 out of every 32 homes in Florida had foreclosure issues last year.
- Florida foreclosures in 2012 were 50% higher than the number of foreclosures in 2011.
From the RealtyTrac release, the chart shown below demonstrates that only one state, New Jersey, had more foreclosure activity in the country than Florida did in 2012. According to Daren Bloomquist, vice president of RealtyTrac:
“2012 was the year of the judicial foreclosure, with foreclosure activity increasing from 2011 in 20 of the 26 states that primarily use the judicial process, and a judicial state — Florida — posting the nation’s highest state foreclosure rate for the first time since the housing crisis began,” said Daren Blomquist, vice president at RealtyTrac. “Meanwhile foreclosure activity continued to decline in 19 of the 24 states that use the more streamlined non-judicial foreclosure process, but there could be a backlog of delayed foreclosures building up in some of those states as well as the result of recent state legislation and court rulings that raise the bar for lenders to foreclose.
“That could mean that although we are comfortably past the peak of the foreclosure problem nationally, 2013 is likely to be book-ended by two discrete jumps in foreclosure activity,” Blomquist added. “We expect to see continued increases in judicial foreclosure states near the beginning of the year as lenders finish catching up with the backlogs in those states, and another set of increases in some non-judicial states near the end of the year as lenders adjust to the new laws and process some deferred foreclosures in those states.”
This article was republished with permission from JDSupra.