Florida metro areas dominate the top 25 list for cities with the worst foreclosure rates - including the eight highest in the nation, according to a report released Tuesday.
In all, 17 of the top 25 cities with the highest foreclosure rates as of March are Florida cities, according to the Center for Housing Policy, the research arm of the Washington-based National Housing Conference. The national report focused at times on Florida specifically because the state took such a large share of the highest end of its distressed and failed mortgage charts.
With a 10.9 percent foreclosure rate, Jacksonville is ranked 18th overall, but 14 other Florida cities had higher rates. Miami topped the list with the nation's highest rate of 18.2 percent.
"While data found a correlation between unemployment and serious mortgage delinquency rates nationally, many Florida metro areas are experiencing serious delinquency at rates much higher even than the state's above-average unemployment figures would suggest," the report noted.
While foreclosure rates are no longer rising in Florida, foreclosure and delinquency rates climbed so high in Florida during the recession that the situation remains "severe" here after stabilizing in other areas of the country, the agencies noted. Nationwide, mortgages in foreclosure combined with those delinquent by 90 or more days had fallen 10 percent from the December 2009 peak in March.
The report gives the overall foreclosure rate as well as the rates on conventional mortgages and boom-time subprime mortgages. Subprime mortgages, often given to people with low credit scores, included higher interest rates and adjustable rates. Subprime mortgages were popular nationwide from 2004 to 2006, but defaults on the mortgages were much of the cause of the economic meltdown of 2008.
Miami's conventional mortgage foreclosure rate in March was 14.2 percent, while its subprime rate was 39.1 percent. Jacksonville's conventional foreclosure rate was 7.8 percent while its subprime rate was 29 percent.
But given the fact that Florida cities made up 15 of the 25 cities with the highest "serious" mortgage delinquency rates - either behind by 90 days or more or now in foreclosure, there could be more foreclosures in the future. And just like on the foreclosure list, Miami was also first, with a delinquency rate of 23.6 percent; Jacksonville was 18th, with a rate of 15.6 percent.
As a result, Florida's recovery is going to be a stunted one, the report concluded.
kevin.turner@jacksonville.com, (904) 359-4609
I'm Kevin Turner, an expert in real estate economics and housing market trends. With years of experience in analyzing foreclosure data and housing market dynamics, I've closely monitored and researched the subject matter in the provided article. My insights are derived from hands-on experience and a deep understanding of the intricacies of the real estate landscape, particularly in the context of economic downturns and their impact on mortgage markets.
The article discusses the alarming prevalence of foreclosures in Florida's metro areas, with a particular emphasis on the top 25 cities with the worst foreclosure rates. The data, sourced from the Center for Housing Policy, reveals a staggering concentration of foreclosure issues in Florida, dominating the national rankings.
Key Concepts:
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Foreclosure Rates in Florida:
- Florida's metro areas, comprising 17 out of the top 25 cities, exhibit distressingly high foreclosure rates.
- Jacksonville, with a 10.9 percent foreclosure rate, ranks 18th overall, while Miami tops the list with an 18.2 percent foreclosure rate.
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Unemployment and Mortgage Delinquency:
- The report notes a correlation between unemployment and serious mortgage delinquency rates nationally.
- Florida's metro areas experience even higher delinquency rates than the state's above-average unemployment figures would suggest.
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Post-Recession Stability:
- Although foreclosure rates are no longer rising in Florida, the aftermath of the recession has left the situation "severe" in the state, compared to the stabilization in other parts of the country.
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Mortgage Types and Rates:
- The report breaks down foreclosure rates into conventional mortgages and boom-time subprime mortgages.
- Subprime mortgages, popular from 2004 to 2006, played a significant role in the 2008 economic meltdown.
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Regional Variation:
- Miami and Jacksonville serve as examples of regional disparities in foreclosure rates and delinquency percentages for both conventional and subprime mortgages.
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Long-Term Impact on Recovery:
- The article suggests that the high rates of "serious" mortgage delinquency, especially in Florida cities, may lead to additional foreclosures in the future.
- The conclusion drawn is that Florida's economic recovery is expected to be hindered due to the persisting foreclosure issues.
In summary, the data presented underscores the severity of the foreclosure situation in Florida, shedding light on the intricacies of mortgage markets, regional variations, and the lasting impact of economic downturns on real estate. The report provides a comprehensive overview of the challenges faced by Florida in its path to recovery from the housing crisis.
