Foreclosure Houses, Defaults in Florida Jump
Florida posted an increase in the number of homeowners who missed their monthly mortgage payments in the second quarter of this year. This development is expected to cause the number of foreclosure houses in the state to rise further.
The rate of mortgage home loan defaults in Florida reached 10.8 percent from April to June this year. According to market data, the second quarter figures represented a 13 percent increase.
The number of home loan defaults did not include mortgages that were in foreclosure proceedings. The number of troubled loans in the state on which repossessions was started in the second quarter dropped by almost 15 points to 2.64 basis points.
Meanwhile, the number of troubled loans that have the potential to add to the growing foreclosure houses during the second quarter jumped by 140 percent to 11.96 basis points.
Normally, the rate of mortgage defaults decline in the first three months of the year, and will inch up again the following quarter because of various seasonal factors.
On the other hand, default rates involving prime adjustable mortgage loans dropped by 11.98 percent or 154 basis points while rates for prime fixed mortgage loans jumped by 7.02 percent to 57 basis points.
The rate of mortgage delinquency involving subprime adjustable loans dropped by 20.65 percent or 47 basis points while the number of subprime fixed loans rose to 23.99 percent or 145 basis points.
The rate of delinquency for home loans insured by the Federal Housing Administration (FHA) was 14.82 percent, up by 95 points. Meanwhile, the default rate of home loans guaranteed by the Veterans Affairs (VA) also rose by 30 basis points or 7.96 percent.
Foreclosure starts for prime adjustable loans in the state jumped by 4.37 points or 38 basis points. Similarly, foreclosure starts involving prime fixed loans rose by 1.54 percent or 11 basis points.
On the other hand, foreclosure starts involving subprime adjustable loans declined by 6.49 percent or 273 basis points, while the subprime fixed loan rate in foreclosure starts also dropped by 4.26 percent or 18 basis point.
The number of actual foreclosures involving prime adjustable mortgages increased by 19.97 percent or 337 basis points. Prime fixed loans accounted for 5.4 percent of all foreclosures, an increase of 106 points.
FHA loans in foreclosure proceedings rose by 6.73 percent or 91 points, while VA-backed loans in foreclosure rose by 3.99 percent or 51 points.
Nationwide, Florida ranked second in foreclosure starts and 6th in mortgage delinquency rates.
By Cassiano Travareli