The foreclosure climate in Florida has been fluctuating and changing over the past couple of years. The road to recovery from the housing collapse has been a long one, including a few hiccups, such as the delay in extending the Mortgage Debt Relief Act, which affected the the number of closed foreclosures.
Given the information we have gathered as of the closing of 2014, we have a few predictions as to what 2015 will hold for South Florida foreclosures and borrowers:
- Nationally, the mortgage loan delinquency rate is expected to continue declining, according to Steve Chaouki, head of financial services for TransUnion. In the past couple of years the unemployment rate has continued to decrease, assuming this trend remains on the same path, it seems quite likely that mortgage loan delinquencies will also continue to decrease. Additionally, the steady increase in home prices will also allow borrowers more opportunities to sell their homes rather than go the foreclosure route.
- Foreclosure and short sale investment purchases will continue to decline in South Florida. As the home prices tick upwards and millennials start qualifying for mortgage loans, the heavy investor purchases will continue to decline throughout next year.
- Rent prices will continue to increase. While this prediction does not directly affect foreclosures, it is something that borrowers facing a foreclosure should keep in mind. With higher rents on the horizon, it is even more imperative that families take time to save during the foreclosure process in preparation to begin renting.
- Fewer Florida foreclosures will remain in the legal system. As the state focuses on the resolution of foreclosure cases, including reassessing the definition of the statute of limitations, we will witness a decline in foreclosures. The extension of the Mortgage Debt Relief Act will also encourage more delinquent borrowers to surrender their homes through the means of a short sale or deed-in-lieu.
At Graham Legal, our team mainly hopes to see more families come out of foreclosure and our foreclosure defense attorneys will be there every step of the way to assist those facing difficulties. The road to recovery is long, but we take pride in helping the borrower come out of the situation in the best way possible.