Foreclosure rates jumped 27% in October from September, when they’d been at the lowest level since 2006. It was the biggest jump in monthly foreclosure filings since August 2007.
While Florida was not on this list of states, the results of the Bartram opinion by the Florida Supreme Court last week will not be felt for some months into 2017. The banks need to re-open many of these loan files and prepare the default notices and refer them to law firms. And the banks generally have a moratorium from filing new foreclosures around the holidays.
The findings are disturbing though as this jump in foreclosures were mostly on loans originated after the crisis in 2009. The data also show that 49% of those loans were FHA or VA loans with low down-payments.
Florida is still the number 7 state in the nation currently with 1 in every 895 houses in foreclosure. The top ten list:
- Delaware: one in every 355 housing units
- New Jersey: one in every 564 housing units
- Maryland: one in every 679 housing units
- Illinois: one in every 704 housing units
- South Carolina: one in every 801 housing units
- Nevada: one in every 826 housing units
- Florida: one in every 895 housing
- Ohio: one in every 930 housing units
- Pennsylvania: one in every 1,018 housing units
- Georgia: one in every 1,028 housing units.
Although Florida was not in the top 5 states in foreclosure starts, auctions, or bank repossessions, things will only increase in the coming months after the Florida Supreme Court gave the banks a free pass to re-file the tens of thousands of cases that were in question due to statute of limitation issues.