Although Florida leads the nation in several categories, one thing that homeowners may not be too happy about is a new report showing that the state has the most high-end foreclosures in the country. The report, released on Dec. 4 by RealtyTrac, also shows that the foreclosure rate for all housing units in the state was the highest in the nation in October.
There were 192 high-end foreclosures in the first 10 months of the year nationwide, and the report showed that 67 such properties in Florida were in some stage of foreclosure from January through October, nearly four times last year’s foreclosure rate for luxury homes. The report referred to homes valued at $5 million or more as ultra high-end.
These high-end foreclosures are mostly located in the Orlando-Kissimmee and Miami-Fort Lauderdale areas. The Orlando area ranks fourth nationwide among cities with 12 luxury homes in foreclosure. Miami, on the other hand, ranks first with 47 high-end homes in foreclosure. The RealtyTrac report points out that the increase in high-end foreclosure rates may be due to the fact that lenders are better able to handle losses than they were in previous years.
Although it is sometimes possible to work with a mortgage company to delay foreclosure or to refinance a property, there are times when the only option that some homeowners have is to file for bankruptcy protection. A bankruptcy filing often stops a foreclosure and allows a homeowner to work through his or her financial troubles. If the lender violated the Fair Housing Act, bankruptcy may not be necessary if the lender is notified of the violation.
Source: The Florida Current, “Florida also leads nation in luxury home foreclosures“, Gray Rohrer, December 04, 2013