Real estate experts call Florida the foreclosure capital because eight of the top foreclosure cities are in the sunshine state. Even though foreclosures in the United States hit a 6-year low in 2013, I'm not feeling any positive effects of the housing recovery. According to a recent CNNMoney article, foreclosure filings in 2013 were down 26 percent from 2012. The national foreclosure rate appears to be back to a somewhat normal level at about 1.04 percent as opposed to 2.23 percent at the peak of the foreclosure crisis. As an "original homeowner" in my neighborhood who bought in 2005, I have had to deal with the aftermath of the housing crisis. While I am pleased that fewer homes are sitting empty in my community, there are still problems that plague the homeowners.
Finding it tough to sell
While it's not difficult for banks to sell the remaining foreclosures to investors, it's extremely difficult for regular homeowners to "unload" their properties at a break-even point. When the original homeowners purchased their houses in 2005, they bought into a quiet community. After the Great Recession, some of the houses became occupied with several generations. I think it's great that families share housing expenses, but it has meant an abundance of cars parked in the streets and an increase in noise. One of my neighbors invested $50,000 to renovate her home before putting it on the market. Although it's gorgeous, it may never sell when prospective buyers drive past homes where people are blasting music with 5 or 6 cars jammed in the driveway.
Renting out vacant homes
Some homeowner associations in my town are working with banks to rent out vacant homes. The homeowner associations receive the fees they need to continue to maintain the community. The bank doesn't have to worry about fixing up the foreclosures and selling them right away. It's a positive thing to have homes that are occupied. At the same time, most renters don't have a vested interest in attracting buyers who are willing to pay the asking price for the homes listed for sale in the neighborhood. All of the homeowners keep their yards up because they know their home values go up as other homes sell at higher prices. Some of the renters have their hands tied because the landlords prohibit them from landscaping.
Home values in my area are going up, but not enough to bring most people out from being underwater on their mortgages. According to Zillow.com, our home is worth about $140,000 even though we bought it for $180,000 about 9 years ago. People who bought at the bottom have solid equity in their homes after just two years, but longtime owners are not even breaking even yet.
The CNNMoney article reported that 19 percent of homes were still "deeply underwater" as of last December. From my experience, the housing recovery in Florida is somewhat overstated. Foreclosures and shorts sales are selling quickly to investors, but it's the regular listings that sit on the market for months even after price cuts. Not everyone wants to buy a home in a community dominated by renters. For my family, it means we have to get used to the influx of renters or sell our home at a loss. If we do sell, we know better than to sink any money into a renovation or remodel.
Finding it tough to sell
While it's not difficult for banks to sell the remaining foreclosures to investors, it's extremely difficult for regular homeowners to "unload" their properties at a break-even point. When the original homeowners purchased their houses in 2005, they bought into a quiet community. After the Great Recession, some of the houses became occupied with several generations. I think it's great that families share housing expenses, but it has meant an abundance of cars parked in the streets and an increase in noise. One of my neighbors invested $50,000 to renovate her home before putting it on the market. Although it's gorgeous, it may never sell when prospective buyers drive past homes where people are blasting music with 5 or 6 cars jammed in the driveway.
Renting out vacant homes
Some homeowner associations in my town are working with banks to rent out vacant homes. The homeowner associations receive the fees they need to continue to maintain the community. The bank doesn't have to worry about fixing up the foreclosures and selling them right away. It's a positive thing to have homes that are occupied. At the same time, most renters don't have a vested interest in attracting buyers who are willing to pay the asking price for the homes listed for sale in the neighborhood. All of the homeowners keep their yards up because they know their home values go up as other homes sell at higher prices. Some of the renters have their hands tied because the landlords prohibit them from landscaping.
Home values in my area are going up, but not enough to bring most people out from being underwater on their mortgages. According to Zillow.com, our home is worth about $140,000 even though we bought it for $180,000 about 9 years ago. People who bought at the bottom have solid equity in their homes after just two years, but longtime owners are not even breaking even yet.
The CNNMoney article reported that 19 percent of homes were still "deeply underwater" as of last December. From my experience, the housing recovery in Florida is somewhat overstated. Foreclosures and shorts sales are selling quickly to investors, but it's the regular listings that sit on the market for months even after price cuts. Not everyone wants to buy a home in a community dominated by renters. For my family, it means we have to get used to the influx of renters or sell our home at a loss. If we do sell, we know better than to sink any money into a renovation or remodel.
