Central Florida Sees Foreclosures, Delinquencies Rise

Tallahassee, FL (AHN) - Florida's housing market is far from recovery with both the foreclosure and delinquency rates in Central Florida increasing.

Foreclosure rates among outstanding mortgage loans were 5.5 percent in August, nearly three-fold compared to the 1.5 percent rate in August 2007, according to First American CoreLogic Inc.

The company based foreclosure rates on total outstanding mortgages instead of using total households because that figure would include paid-off mortgages and renters.

Delinquency rates on mortgage loans 90 days or more late also rose in August to 9.6 percent of mortgage loans, more than double the 3 percent rate reported in August 2007.

Foreclosure rates are so high in Florida that the U.S. Department of Housing and Urban Development moved to help. Last week it gave the Florida government $540 to launch its Neighborhood Stabilization Program. The money is to buy troubled properties and turn them into rentals.

But the rental market is also soft in Florida with "For Rent" signs dotting neighborhoods and single family homes and small apartment buildings competing with larger apartment complexes offering rent-free months and lowered monthly rents to fill vacant units.

Part of the problem in Florida is a continuing drop in jobs, meaning there are fewer people there to rent or buy housing.