As of May, the number of foreclosures in the United States were recorded as the highest in 19 months. However, most experts aren’t concerned with it being a sign of another housing market downturn. The banks are finally attending to the homes that have been backlogged and are currently still sitting in the foreclosure process. This has resulted in higher numbers, though hopefully only in the short term.
Florida, who sports the highest rate of foreclosures in the country, has one in every 409 homes in foreclosure. When compared to April 2015, the proceeding month of May saw a 4 percent increase in the number of foreclosed-upon homes in the Sunshine State. Though Florida has been high on the list for most foreclosures in the country for quite some time, other states with similar issues include Nevada, Ohio, New Jersey, and Maryland.
Homeowners new in the foreclosure process are not the issue
When examining the numbers more closely, this 19-month high of foreclosures doesn’t necessarily mean the beginning of another housing crash. Our foreclosure attorney in Miami notes that this time the amount of newly-distressed homeowners are not responsible for the rise in numbers. Homes lingering in foreclosure are finally being turned over to the banks, which further eludes to this surge being short term.
The foreclosure process, when compared to the first quarter of 2014, was 48 days longer over the same time in 2015, when it totaled 620 days on average. Analyzing these numbers shows that more homes are now in the latter stages of foreclosure than the beginning. Additionally, the total amount of foreclosures still do not rival the amount we saw after the housing bubble burst in 2006.
The fact that newly-foreclosed-upon homes are not the reason for the rise in foreclosures is paramount in predicting what is to come in the near future.
If you are contemplating foreclosure or have already begun the foreclosure process, you should have an experienced foreclosure attorney in Miami by your side. We invite you to schedule an initial consultation with Graham Legal today to find out how to best deal with your unique foreclosure situation.