Selfish mortgage practices and unscrupulous loan officers have left the state of Florida in real estate hell. Congress has acted upon the publics distress by passing several legislative acts to assist struggling home owners. The most popular being, President Barack Obama’s much advertised plan available at his websites, http://www.obamahelpforclosures.com, and the home recovery act website, http://www.homercovery.org.
The Impact of Florida’s lending Practices and Foreclosures
The Center for Responsible Lending, available at http://www.responsiblelending.org, an organization committed to protecting home ownership and family wealth, staked Florida’s 2010 foreclosure projections at 1,482,279. Florida’s high foreclosure projections, thankfully, doesn’t spell the end. While, the pan handle state did project almost 1.5 million foreclosures in the state, the number of foreclosure sales is relatively small, reaching only 112,836. Florida’s low foreclosure inventory, when considering its projection rates, is equally impressive. Only 484,421 homes remained in the states unsold category at the end of 2010’s first quarter.
The state’s total past due mortgages is a million, all by itself. When looking at the numbers presented by Florida, just for the first quarter of 2010, it’s easy to see how they came to their current sky-high foreclosure projections. When the first quarter of 2010 came to a close the state of Florida posted 875,869 past due mortgages. Florida, expectedly, had a major change in foreclosure starts. Using the time frame of the past 4 years, 2006-2010, Florida has had an overall foreclosure increase of 731 percent.
As the result of all these drastically changing factors, the average loss, per home, for the pan handle residential real estate market was $41,271. The total loss of wealth due to Florida’s foreclosures, across the years of 2009-2012, is projected to be a real estate zeppelin, in the $330 billion range.
The Impact of Texas lending Practices and Foreclosures
Texas has done surprisingly well, enduring the burst of the housing bubble. Texas has had a medium rise in foreclosures as compared to the rest of the large states in the country. Between the years of 2006 to 2010, Texas foreclosures have risen 67%. At the end of the first quarter of 2010, Texas had survived 204,464 foreclosure starts. This was quite a feat, just of itself.
Over the same period of time, the state only sold 67,669 of its foreclosed homes, leaving Texas with a inventory of just under 65,000 foreclosed homes. The annual loss per home in Texas, was recorded by the state, as relatively small $3,030. In the end, Texas residential real estate compiled a total loss of $20 billion. As of the last quarter of 2010, Texas is embarrassed by its total of 337,620 past due mortgages. The number of private homes in nearby foreclosure in Nevada, are 6,596,254, an outrageously high number for such a low loss per home.
This shows that the cost of doing real estate, with the right agent, in Texas can still be worth its weight in housing gold.