Even as reports indicate that the economy is improving, the housing market in Florida continues to suffer. The state remains number one in the home foreclosure rankings. This is despite the fact that the number of foreclosure actions has dropped approximately 37 percent from last year.
The numbers indicate that many of the current foreclosure actions have been going on for years. Some sources attribute the decline in new foreclosure actions to the fact that more homeowners are being proactive in attempting to work out a solution with their lenders. Even so, many Florida residents continue to struggle to make ends meet, which means that it is still more important to put food on the table than it is to make a mortgage loan payment.
For instance, two Florida counties, Manatee and Sarasota, have a minimum of 5,500 homes that are in danger of facing foreclosure. There is also a “zombie” listing of tens of thousands of homes across the state whose fates have yet to be decided. These homes are not occupied, but lenders have not yet filed foreclosure actions against their owners.
The worst thing that a person facing home foreclosure can do is nothing. Even if an individual’s financial situation does not support attempting to keep the home, allowing it to be foreclosed on could be detrimental. For those who do not want to keep their homes, filing for Chapter 7 bankruptcy could stop a foreclosure and eliminate any deficiency that could remain on the mortgage loan. Obtaining a discharge of a mortgage loan and other debts could provide the filer with a much needed opportunity to wipe the slate clean and start over financially.
Source: mysuncoast.com, “Foreclosures down in Florida, but it still remains a big problem“, Rick Adams, June 15, 2016
