More homeowners in Florida went into foreclosure than in any other state last month. Realtor Marion McGee says unfortunately, it’s no surprise to her.
"Most definitely there’s been a pickup in delinquent borrowers. We see more and more delinquencies and it looks like it’s going to get worse before it gets better," said McGee.
More than 16,500 properties across the state began foreclosure proceedings in August, a 50 percent jump from the previous month.
One of the problems for many homeowners is it’s pretty easy these days to get a mortgage for a house that may really be too big for your budget.
Those interest-only loans that became so popular during the housing boom are now coming home to roost for homebuyers who may now also find their homeowner’s insurance and property tax bills going through the roof.
Mortgage broker Tom Ingle takes a dim view of fancy financing options that start off affordable, but get increasingly more expensive.
"Here’s a $300,000 house with a $400 mortgage. Well, you know there’s no such thing as a free lunch. Sooner or later that $400 mortgage payment is going to haunt you for what the real payment should be," said Ingle.
But with the median price of an existing home at more than $250,000 in Florida, many would-be homebuyers are finding themselves with little choice.