Home mortgage defaults, foreclosures ...

Home mortgage defaults, foreclosures may pop S. Florida housing...

There are 219 comments on the SouthFlorida.com story from Jul 28, 2007, titled Home mortgage defaults, foreclosures may pop S. Florida housing.... In it, SouthFlorida.com reports that:

Mounting mortgage defaults across South Florida threaten to hurt more than just those homeowners who lose their properties to lenders.

Join the discussion below, or Read more at SouthFlorida.com.

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United States

#1 Jul 28, 2007

Hobe Sound, FL

#2 Jul 28, 2007
Noone can afford a home these days, expect prices to drop another 100k at least.
Crocodile tears

West Palm Beach, FL

#3 Jul 28, 2007
Don't feel so bad for the sellers crying about not getting their asking prices. In Palm Beach county, homeowners list their homes for $1 million when they bought them for $600,000 5 years ago. How about $625,000...and we call it a day.

Boynton Beach, FL

#4 Jul 28, 2007
My delightful home is not homesteaded. Thank Buddha, I own it outright. I hope that the prices of homes crash, so I can get a nice tax break. I have no plans of selling it. I hope the flippers and the inbred locals suffer equally. Empty homes bringing down prices in suburban areas sounds wonderful to me. The neighborhood Nazi's in Flamingo Park National Hysterical Zone will make sure that people keep up their properties.

Since: Jun 07

Takoma Park, MD

#5 Jul 28, 2007
Ummm...idiots, the bubble burst last year. All we need now is a stock bubble...again. But be careful what we wish for.

Seattle, WA

#6 Jul 28, 2007
What, a 1% drop in values? Prices/values will drop 30% by the time this is over.

Hollywood, FL

#7 Jul 29, 2007
God bless the ARM mortgage holders and the FED!
Poor Taxpayer

Boca Raton, FL

#8 Jul 29, 2007
HIGH PROPERTY TAXES ARE ROOT CAUSE OF THIS PROBLEM. SOH is going to scrrew all the people that thought they were saving money. $350,000 home will sell at $250,000 because the new buyer has to pay high taxes and old buyers are defaulting on mortgages because they can not afford to pay the taxes. There is no free lunch and government has got you again. MOST OF THE TAX MONEY GOES TO PAY FOR COPS AND FIREMENS HUGE PENSIONS. End the pensions and give them 401k's and SAVE FLORIDA.

Berkley, MA

#9 Jul 29, 2007
Florida Real Estate has been in the past, like the game of musical chairs. Well the music has stopped and tens of thousands will loose their equity on their homes but also their dreams as well. Expect rentals to esculate rapidly as people have to live somewhere after being forced out of their property.
Bad Czech


#10 Jul 29, 2007
Real estate prices were driven to unrealistic levels two years ago by investors, and free lending practices of banks and mortgage companies. Now the investors are gone, and the banks have tightened up on lending practices. Add to that the high premiums for hurricane insurance and the relatively low salaries in South Florida, and you don't have to be an economist to see where real estate prices are going. To those who are trying to sell their homes for the same price their neighbor got two years ago, keep dreaming. As for this hurricane season, one more bad storm and you'll really see the bottom fall out of residential real estate.
Boca Bill

Mobile, AL

#11 Jul 29, 2007
Another doom and gloom article being touted by the real estate sector. Of course the real estate sector is not taking blame or responsibility for their part in the run up of housing prices. Neither are the people who sold their homes for inflated prices, buyers who purchased these over priced homes and the banking industry who floated mortgages to people who would not have qualified prior to the run up.

I have lived through this real estate problem once before on Long Island during the 1970's. We use to call them Friday night movers. They were there on Friday and moved out during the night. I had a few homes in my neighborhood that were in foreclosure and the bank took care of the property and it was sold in time. The bank will not sell a home for a loss but will sell for the balance of the loan. Of course my development was new - being built only two years - and we stayed and weathered out the storm. It appears this is the same problem we now face here. Stable neighorhoods will not be affected in the drop of price.

Just wondering, with the doom and gloom - how many homeowners are currently making their monthly mortgage payments on time?? Just because there was an increase in delinquent payments from 256 to 1,000 what is the percentage of delinquent payments?? The buyers who now face foreclosure are the same ones who took a gamble and who would not have qualified for a mortgage prior to the run up, are now facing their own decisions on the type of mortgage they secured.

As for property taxes being a problem, well I agree on this point. But property taxes go hand in hand with the sale of the home. Sellers who sold or are selling for 4 or 5 times the market value of their home will reflect in higher property taxes. As the real estate market makes a correction in the price of homes, the property tax will also make a correction. Most likey we will be in this cycle for the next 2 years with the prices of homes falling to near the market value.

Fryeburg, ME

#12 Jul 29, 2007
The herd mentality is alive and well. When values were going up people thought there was no end to it and every one jumped in on the bandwagon with banks willingly financing. With a change in the real estate market every one is trying to jump off the bandwagon as if it were on an endless run downhill.

New Orleans, LA

#13 Jul 29, 2007
Median wage is $55k in Broward? So median household income could be as high as $100k.

What's the qualifying mortgage at $100k w/good credit? I think about $250k maximum.

What's the current median price for a home in Broward? That's how far it needs to fall.

Ooltewah, TN

#14 Jul 29, 2007
":Median wage is $55k in Broward? So median household income could be as high as $100k."

HAHAHA! Dream on!

Median Household Income in Florida was 43K in 2006. Do the research. Therefore the median house, by traditional financing standards, should be about 130-140K.

By the time this crash is over (3-5 years) it'll be close to that. Florida will be a financial waste land.

Tucson, AZ

#15 Jul 29, 2007
forget it, i am not going to pay these high tax bills and insurance premiums.

cut prices in half before i will buy

I will pay no more than 100K for a house or 50K for a condo.

Ambler, PA

#16 Jul 29, 2007
This is what you get for being Greedy! Suckers!

Pompano Beach, FL

#17 Jul 29, 2007
well we got a great house in wesat sunrise which we bought for 283k from a private owner with upgrades (all it needs ism some paint)..we also looked at alot of pre-forclosures and forclosures and those homes are in really bad shape.Not sure how the banks are going to make their money back.
min jobs effect

Fort Lauderdale, FL

#18 Jul 29, 2007
with all the garbage of 4.9 percent unemployment is a joke ..they should tell the truth, this figure is only the unemployment insurance,{workforce}who is collecting unemployment..what a joke with the strong restriction on drawing this,that been in place with the congress last 10 years,people draw for 8 weeks and when the checks run out guess what,there out of the system and then not counted,oh yes with all the new jobs that are claim are all min,wadge jobs..and forcloser are coming to your neighborhood..lol..ask the I,R,S,for who pays taxes out of 350 million people only 100 million filed last year..thats a 66% unemployment..this will tell all you all the truth..lmao

Since: Jan 07

Miami, FL

#20 Jul 29, 2007
Boca Bill wrote:
I have lived through this real estate problem once before on Long Island during the 1970's. We use to call them Friday night movers. They were there on Friday and moved out during the night. I had a few homes in my neighborhood that were in foreclosure and the bank took care of the property and it was sold in time. The bank will not sell a home for a loss but will sell for the balance of the loan.
I had family on Long Island during that time period. They bought near the top of the bubble, sold ~15 years later, and were at just about broke even with their purchase price. That's exactly what is going to happen, and is happening, in FL for the next many years (decades?). If you bought a home during the peak of this bubble, it could very well be 10-20 years before you see the price return in absolute dollars; in inflation adjusted terms, I can already promise that almost nobody who bought near the peak will ever see the full amount again in inflation adjusted terms.

Banks will sell a home at a loss, they just are loathe to do so. However, as their inventory piles up they will begin to sell more and more of them at whatever price the market will bear (which will be a loss). Also, just an FYI, if the bank does sell at a loss, there is a possiblity that the previous owner of the home will be forced to pay income tax on the difference between the amount owed, and the amount the bank took on the home. Just another wonderful way that the poor people who bought into this crazy run-up will be scr**ed by the system.

Here are some annoyed homeowners on the west coast; imagine paying 300K and then having your negihbor move into an identical unit that they purchased AFTER you for 145K. Does great things for the comps too:

The Great and Powerful Oz

United States

#21 Jul 29, 2007
For God's sake, finish your story!! Although this is really news to anyone.

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