The housing market in South Florida remains unstable despite recent gains in the rest of the state. This is partially evidenced by the fact that the home foreclosure rate in the area went up 6 percent in the last six months. Fortunately, even with that increase, the rate is still below what it was after the housing market crash and during the recession.
One source reports that the current foreclosure rate is actually normal for the area. Since the housing market bottomed out in 2011, it has slowly regained ground. At that time, buyers were able to purchase properties well below market value. Those homes have steadily increased in value and more people are back to work, which have helped to stabilize the number of people who become delinquent on their mortgage loan payments.
Despite the fact that housing market is still distressed in South Florida, it could be reaching a point where it is not longer suffering the aftermath of the housing collapse that began in 2006. Judges are working on the backlog of foreclosure cases. Hopefully, there will come a time when the recession no longer impacts the number of active cases in this area or anywhere else in the state.
That being said, there might always be families who are in danger of home foreclosure because they are behind on house payments. More than likely, there are issues with being able to pay other debts as well. At this point, it might be beneficial to discuss the possibility of filing for either Chapter 13 or Chapter 7 bankruptcy in order to help remedy the issues with their financial situations.
Source: sun-sentinel.com, “New foreclosure cases up 6 percent in South Florida“, Paul Owers, Sept. 19, 2016