Florida Foreclosures Could Increase by 100 Percent in 2009

He noted that about 2.4 million families across the United States have lost their properties to foreclosure. And based on the current trends, McCabe predicted that filings will double in 2009.

He estimated the actual number of foreclosed properties to be between 36 percent and 38 percent of actual foreclosure numbers. He pointed out the duplication in the counting of filings.

Meanwhile, data released by Condo Vultures LLC showed that the number of homeowners who were in some form of foreclosure process increased by 128 percent last year compared with figures in 2007.

Peter Zalewski of Condo Vultures pointed out that South Florida filings in 2007 were 33,154, which increased to 75,730 in 2008.

On the other hand, Florida Association of Realtors released a data which showed that about 78,676 single-family home and condominium owners filed for foreclosure between January to October 2008.

In Palm Beach County, about 24,091 filings were posted, 32, 271 in Broward County and 22,314 in Miami-Dade County.

McCabe added that, unless changes will happen in the outlook, South Florida could expect as much as 150,000 filings in 2009. He cited some major challenges facing the housing market, including payment options resetting and the big proportion of mortgage loans and adjustable teaser rates.

Meanwhile, Foreclosure Response Team principal Scott Colony believes that a loan modification between the lender and the borrower could reduce filings in 2009. In loan modification, the loan’s interest rate and/or principal are reduced.

He said that in 2008, 950,000 loans were modified nationwide and over 2 million loan modifications are expected in 2009.

By Cassiano Travareli