florida - the face of foreclosure

8/9/2019 Florida - The Face of Foreclosure

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THE FACE OF FORECLOSURE

FLORIDA

Contents

Areviewofstatewideforeclosuresbyfilingtype

Demographicprofilesofknownforeclosedfamilies&individuals Foreclosuretrendsinselectedmajormetropolitanareas MapsofforeclosurefilingsinCapeCoral,Jacksonville,andOrlando


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AReviewofStatewideForeclosureFilings

AbriefsurveyofnewsarticlesonforeclosuresthroughoutthestateofFloridaislikelytoleaveoneoverwhelmedwith

potentiallyconflictingfigures.Infact,manyFloridianswouldprobablynotbesurprisedtoreadanarticlepublishedbya

majormediaoutletdescribingplummetingforeclosureratesoneminute,andanotherdocumenting risingforeclosure

ratesthenext.TobetterunderstandforeclosuretrendsthroughoutthestateofFlorida ,SGSexaminedanexhaustiveindexofthreeprimaryindicatorsofforeclosureissuedoverathreeyearperiod (March2006February2009).

Thefirst,LisPendens,indicatesthatlegalactionhasbeentakenonaproperty.Afterreceivingthisnotice,itisstill

possibleforthemortgageholdertorectifythedelinquentmortgageandavoidforeclosure.Thesecondfiling, Noticeof

Sale,notifiesthemortgageholderthanthepropertyhasbeenscheduledforforeclosuresaleonaspecifieddate. Real

EstateOwned(REO)indicatesthatthebankormortgagelendernowownstheproperty,mostcommonlyafterthe

propertyfailstosellatauction.

AbriefcomparisonofLisPendens,NoticesofSale,andREOsshedssomelightononeofthepossiblereasonsforlarge

disparitiesinreportsonforeclosures.SinceaboutMarchof2007,therehasbeenagrowinggapinthenumberof Lis

Pendensissuedandthenumberofhomesthateventuallywenttoauction.Onemusttakegreatcare,therefore,in

reportingonstatewideforeclosurestatistics.Whilereportingthenumberof LisPendensfiledmayreflectthenumberof

foreclosureproceedingsstarted,itdoesnotnecessarilyreflectthenumberofhomesthatwereeventuallysoldat

auction.

0

5000

10000

15000

20000

25000

NumberofNo/cesIssued

ForeclosureNo/cesIssued-Florida(Statewide)

LisPendens No/ceofSale REO


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DemographicProfiles

BymatchingforeclosurerecordstoexistingdemographicdataintheFloridaRealtorsDatamine,alimitedprofileof

thosewhohaveexperiencedhomeforeclosurecanbeexplored.Itisimportanttonotethatthefollowinganalysishas

threekeylimitations:

1. ItappliesonlytothosereceivingatleastoneforeclosurefilingbetweenMarch2006andFebruary20092. Itincludesonlyregisteredvoters whoserecordsmatchedtheinformationontheforeclosurefiling3. Itincludesonlythoseforwhomdemographicdataisavailable

Thefollowingdemographicprofilesareusefulinhelpingtounderstandbasiccharacteristicsofmanyofthose

experiencingforeclosureinFlorida.Additionally,thefollowinginformationwillbeusefulinthedevelopmentofmore

robuststudiesofhomeforeclosuresinFlorida.InordertodeveloptrulyrepresentativeprofilesofallFloridians

undergoingforeclosure,however,additionalsurveyresearchisrecommended.

Level of Income

Whatbecomesimmediatelyapparentuponreviewingtheannualincomelevelsofthoseundergoingforeclosureisthat

theproblemisnotlimitedtohomeownerswithlowincomes.Over20%ofallmatchedrecordsindicatedannualincomes

of$50,000-$75,000,andanadditional 20%ofmatchedrecordsrepresentedthosewithincomesof$100,000ormore .

Homeforeclosuresarenotlimitedtothewealthy,either.27%ofallmatchedrecordsrepresenthomeownerswith

reportedincomesof$35,000orless.

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

PercentageofAllMatchedRecords

IncomeLevelofThoseReceivingAtLeastOneForeclosureFiling


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Married

92%

Single

8%

MaritalStatus

Educational Attainment

Inadditiontoaffectingalllevelsofincome,theproblemofforeclosureisfoundamongalllevelsofeducation.Infact,

almost25%ofallmatchedforeclosurefilesrepresentindividualswithacollegedegree.Anadditional30%ofrecords

representthosewhohadcompletedatleastsomecollege.

Thedatamayalsoindicatethathomeforeclosuresdisproportionatelyaffectthosewhoarelesseducated.Afull15%of

matchedfilesrepresenthomeownerswhohadnotcompletedhighschool.Thispossibilityisfurtherstrengthenedbythe

factthatdataisgenerallylessavailableforthosewithlowerlevelsofeducationandincomeasitismoredifficultto

gatherconsistentdataonthesedemographicsduetomanyfactors.

Marital Status and Presence of Children

Ofallmatchedforeclosurerecords,over9in10representmarriedhomeowners.Accordingtoavailabledataonly8%of

matchedrecordsrepresentsinglehomeowners. Significantly,overtwo-thirds(23)ofallmatchedforeclosurerecords

representhouseholdswithchildrenpresent. Thesestatisticsmayindicatethatasizablemajorityofforeclosuresin

Floridaaffectfamilies,andmostofthemwithchildren.

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

LessthanHigh

School

HighSchool SomeCollege CompletedCollege GraduateSchoolPercentageofAllMatchedForeclosure

R

ecords

HighestAainedLevelofEduca/on

NoChildren

Present

35%Children

Present

65%

PresenceofChildrenintheHome


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Length of Residency

AcommonspeculationisthathomeforeclosuresinFloridahaveprimarilyaffectedthosewhohadrecentlymovedintoa

homethattheycouldnotaffordandsoonthereafterbecamedelinquentontheirmortgage.Thelimiteddatathatis

availableonlengthofresidencyindicatesthatwhilehomeforeclosuresmaydisproportionatelyaffectthosewhohave

recentlymovedintothehome,thosewithlongerlengthsofresidencymaystillbesusceptible.Whenaddedtogether,

fully35%percentofallmatchedforeclosurerecordsrepresenthomeownerswhohadlivedinthehomeformorethan

10years.

Onceagain,theavailabledataherearelimitedatbest.Itisrecommendedthatthoseconductingforeclosuresurvey

researchinthefuturetakeintoaccounttheimplicationsofthisinformation.

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

LengthofResidency,inYears

LengthofResidencyforThoseReceivingAtLeastOneForeclosureFiling


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ForeclosureTrendsinSelectedMajorMetropolitanAreas

Whileitisevidentthathomeforeclosureshavenot

beenconfinedtoafewsegregatedregionsofthestate,

examiningthecitiesinwhichforeclosureshavebeen

particularlyproblematicmayleadtoabetterunderstandingoftheissueathand.Here,weexamine

thefivecitieswiththegreatestnumber LisPendens

issuedfromMarch2006toFebruary2009.Thosecities

are(1)Miami,(2)Tampa,(3)Orlando,(4)Jacksonville,

and(5)CapeCoral.

FromMarch2006toFebruary2009,nearly25,000 Lis

PendenswereissuedinMiami50%morethanin

Tampaand77%morethaninOrlandoduringthesame

period.ThenumberofNoticesofSaleissuedinthe

samethree-yearperiodmayindicatethatmore

propertiesactuallywenttoauctioninMiamithanin

anyothercityinFloridaduringthesameperiod.

FromMarch2008toFebruary2009,however,more LisPendenswerefiledinTampa(16,229)thaninanyothercityin

Florida.SinceaboutMayof2007,theissuanceof LisPendensinTampahasbeensteadilyrising.InSeptemberof2008,

therewere1,643LisPendens issuedinTampaalone.

LisPendens NoticeofSale REOMiami 24502 12795 7996

Tampa 16229 3429 2635Orlando 13853 2612 3401

Jacksonville 13223 2643 3252

CapeCoral 13101 5543 4426

LehighAcres 9660 3768 3238

WestPalmBeach 8956 833 980

Kissimmee 8795 1343 2465

Ft.Myers 7651 2522 1697

St.Petersburg 7063 1794 1607

Ft.Lauderdale 6686 3114 1860

March2006February2009

0

200

400

600

800

1000

1200

1400

1600

1800

Num

berofNo/cesIssued

LisPendensIssuedinMiamiandTampa,March2006throughFebruary2009

Miami

Tampa


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0

2000

4000

6000

8000

10000

12000

Jacksonville Orlando Miami CapeCoral Tampa

NumberofNo

/cesIssued

RECENTForeclosureNo/cesIssuedbyCityMarch2008-February2009

LisPendens NoceofSale REO

0

5000

10000

15000

20000

25000

30000

Jacksonville Orlando Miami CapeCoral Tampa


ForeclosureNo/cesIssuedByCityMarch2006-February2009



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Miami1ThecityofMiamihasexperiencedcomparativelyvolatileforeclosurepatternsoverthelastthreeyears.Thenumberof

LisPendensissuedpeakedinJune2007at1,285.FromJanuarytoMayof2008,thenumberof LisPendensissuedfell

62%to558permonth,onlytospikeagaininFebruary.NoticesofSale,however,havebeenrisingconsistentlysincethe

beginningof2007,peakingat797inJulyof2008.Itisalsoworthnotingthatthenumberof LisPendensissuedmonthly

hasbeenparticularlyvolatilesinceMayof2007thesamemonththatunemploymentratesbeganincreasingsteadily.

1UnemploymentratesreflectthoseoftheMiami-FortLauderdale-PompanoBeachMetropolitanStatisticalArea.Source:U.S.

BureauofLaborStatistics

0

200

400

600

800

1000

1200

1400

1600

1800

Mar2006

Apr2006

May2006

Jun2006

Jul2006

Aug2006

Sep2006

Oct2006

Nov2006

Dec2006

Jan2007

Feb2007

Mar2007

Apr2007

May2007

Jun2007

Jul2007

Aug2007

Sep2007

Oct2007

Nov2007

Dec2007

Jan2008

Feb2008

Mar2008

Apr2008

May2008

Jun2008

Jul2008

Aug2008

Sep2008

Oct2008

Nov2008

Dec2008

Jan2009

Feb2009


ForeclosureNo/cesIssued-Miami,FL


0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

0

200

400

600

800

1000

1200

1400

1600

1800

UnemploymentRate


LisPendensIssuedandUnemploymentRate-Miami,FL

LisPendens UnemploymentRate


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Tampa2

ForeclosurefilingshavebeenrisingsteadilyinTampaoverthelastfewyears.UntilMarchof2008,however,the

issuanceofNoticesofSalewerefairlylimitedwithrespecttothenumberof LisPendensissued.FromMarchthrough

Juneof2008,however,thenumberofNoticesofSaleissuedmonthlyclimbedfrom16to416,analarmingincreaseof

2,500%.

ItwasalsoinMarchof2008thattheunemploymentrateinTampabeganitssteadyclimb.FromMarch2008to

February2009theunemploymentratedoubled,risingfrom5.4%to10.3%.

2UnemploymentratesreflectthoseoftheTampa-St.Petersburg-ClearwaterMetropolitanStatisticalArea.Source:U.S.Bureauof

LaborStatistics

0

200

400600

800

1000

1200

1400

1600

1800

Mar2006

Apr2006

May2006

Jun2006

Jul2006

Aug2006

Sep2006

Oct2006

Nov2006

Dec2006

Jan2007

Feb2007

Mar2007

Apr2007

May2007

Jun2007

Jul2007

Aug2007

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Oct2007

Nov2007

Dec2007

Jan2008

Feb2008

Mar2008

Apr2008

May2008

Jun2008

Jul2008

Aug2008

Sep2008

Oct2008

Nov2008

Dec2008

Jan2009

Feb2009


ForeclosureNo/ceIssued-Tampa,FL


0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

0

200

400

600

800

1000

1200

1400

1600

1800

Mar

2006

May

2006

Jul

2006

Sep

2006

Nov

2006

Jan

2007

Mar

2007

May

2007

Jul

2007

Sep

2007

Nov

2007

Jan

2008

Mar

2008

May

2008

Jul

2008

Sep

2008

Nov

2008

Jan

2009

UnemploymentRate

Nu

mberofForeclosuresIssued

LisPendensIssuedandUnemploymentRate-Tampa,FL



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0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

0

200

400

600

800

1000

1200

U

nemploymentRate

Num

berofNo/cesIssued

LisPendensIssuedandUnemploymentRate-Orlando,FL


Orlando3

UpuntilAugustof2008,foreclosurefilingswererelativelymildinOrlando.Theaveragenumberof LisPendensfiled

fromMarch2006toAugust2007were82permonth,withthenumberofNoticesofSaleaveragejust19permonth

overthesameperiod.

FromAugustthroughOctoberof2007,however,foreclosurefilingsskyrocketed.TheissuanceofLisPendensrosefrom

16permonthto194permonth,withNoticesofSaleandREOfilingsfollowingsuit.Sincethen,foreclosurefilingsofall

typeshavebeenrisingsteadily.

3UnemploymentratesreflectthoseoftheOrlando-KissimmeeMetropolitanStatisticalArea.Source:U.S.BureauofLaborStatistics

0

200

400

600

800

1000

1200

Mar2006

Apr2006

May2006

Jun2006

Jul2006

Aug2006

Sep2006

Oct2006

Nov2006

Dec2006

Jan2007

Feb2007

Mar2007

Apr2007

May2007

Jun2007

Jul2007

Aug2007

Sep2007

Oct2007

Nov2007

Dec2007

Jan2008

Feb2008

Mar2008

Apr2008

May2008

Jun2008

Jul2008

Aug2008

Sep2008

Oct2008

Nov2008

Dec2008

Jan2009

Feb2009


ForeclosureNo/cesIssued-Orlando,FL



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Jacksonville4LikeMiami,thecityofJacksonvillehasexperiencedvolatileforeclosurefilingsoverthelastthreeyears.Whilethe

numberofLisPendensfiledhasincreasedovertime,thetrendisnotsoclearwhenconsideringthenumberofNoticesof

Saleissued.

Forthemostpart,theriseandfallinthenumberof LisPendensissuedmonthlyinJacksonvillehascorrespondedtothe

riseandfallofthecitysunemploymentrate.FromMay2007throughFebruary2009,thecityofJacksonvillesawits

unemploymentratenearlytriple,from3.3%to9.4%.AsinMiami,Tampa,andOrlando,thenumberofLisPendens

issuedmonthlyhasrisenwiththecitysunemploymentrate.

4UnemploymentratesreflectthoseoftheJacksonvilleMetropolitanStatisticalArea.Source:U.S.BureauofLaborStatistics

0

100

200

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900

Mar

Apr

May

Jun

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Aug

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Oct

Nov

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Jan

Feb

Mar

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Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

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Jul

Aug

Sep

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Dec

Jan

Feb

NumberofN

o/cesIssued

ForeclosureNo/cesIssued-Jacksonville,FL


0.0%

1.0%2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

0

100200

300

400

500

600

700

800

900

UnemploymentRate


LisPendensIssuedandUnemploymentRate-Jacksonville,FL



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0

200

400

600800

1000

1200

1400

Mar2006

Apr2006

May2006

Jun2006

Jul2006

Aug2006

Sep2006

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Mar2007

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Dec2007

Jan2008

Feb2008

Mar2008

Apr2008

May2008

Jun2008

Jul2008

Aug2008

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Oct2008

Nov2008

Dec2008

Jan2009

Feb2009


ForeclosureNo/cesIssued-CapeCoral,FL


0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

0

200

400

600

800

1000

1200

1400

UnemploymentRate

Num

berofNo/cesIssued

LisPendensIssuedandUnemploymentRate-CapeCoral,FL


Cape Coral5

UntilSeptemberof2007,CapeCoralhadrelativelyfewforeclosurefilingscity-wide.FromMarch2006throughAugust

2007,theaveragenumberofLisPendensfiledwasjustfivepermonth,andthenumberofNoticesofSalefiledwerejust

fourpermonth.

ForeclosurefilingschangeddrasticallyinSeptember,however.FromAugusttoSeptember,thenumberof LisPendens

filedincreasedtenfold,from21permonthto228permonth.Thenumberof LisPendensfiledcontinuedtorisethrough

Januaryof2008,peakingat1,167permonth.Whilethefilingof LisPendenshassincedeclined,residentsofCapeCoral

havebeenseeingasteadyincreaseinthenumberofNoticesofSaleissued,peakingDecemberof2008at1,044.

5UnemploymentratesreflectthoseoftheCapeCoral-FortMyersMetropolitanStatisticalArea.Source:U.S.BureauofLabor

Statistics


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F F F

Fl


14/17

F F F

F F F

Kahy

have found this entire experience to be devastating.

m behind in income tax and every other obigation. Cant

e bankruptcy as d ose my car.

am in tota nancia ruin due to the on-going crisis of theForida rea estate market.

Prior to the shift in our market area, had savings, no

revoving debt and a very comfortabe income. am now

iving in a friends home, am in fear of osing my car and

get approximatey 30 cas from creditors and/or attorneys

on a daiy basis. life is not fun and am frustrated beyond

words.

Every day continue to be thankfu that its just me, not

a famiy, not my chidren, that are faced with this horrid

situation and am humbed when work with famiies who

have ost everything and sti need to feed their chidren.

Nesor

They refused to work with me because my oan was

FH insured and they were going to get paid by the

government so they were not interested in heping me.

My wife and both worked in the contstruction ed. We

both ost our jobs.

Because of the nancia probems my wife eft me with my

new baby gir and we are getting a divorce.

have been iving with my brother and his wife and 2 kids

for over a year because cannot afford to get my own

apartment and pay for transportation, chid support.

This probem has destroyed my ife and fee that of my

baby gir.

Foreclosure Dae: 6/60/2008

60% of monthy income going towards

housing costs

Experienced divorce

Foreclosure Dae: ctober 2008


housing costs

ne chid and three dependents iving

in home

Experienced job oss and divorce

t, F

Np, F


15/17

F F F

F F F

Barbara

[lenders] woud not tak to me or negotiate. Take it or

oose it

ost my income due to the decine in cients ,as am a

reator.

My heath took a dive and had kidney operation. Took my

income and didnt fee we either.

When the company oss mitigator sent me a schedue for

payments, and asked for the breakdown of costs. They

woud not give me detais or speak to me at a. They never

kept me informed.

nother reator tried to do a short-sae, think they were

too ate!

Deb

This home has been forsae for 2 yrs....the bank says it is

waiting on? ... buyer may wak.

...divorce, hospitaization, oss of income, and famiy

medica emergency

was a top-producer. Then became i, my ance was

injured in a motorcyce accident, he spent 3 months in a

hospita 60 mies away.

loss of wages combined with a decine in market

vaues, renters not paying rent was unabe to make my

payments.

My income went from 200K a yr to 30K a year.

Foreclosure Dae:7/1/2009


housing costs

Experienced job oss and unexpected

medica bis

Foreclosure Dae:Pending


housing costs

Three chidren and one dependent iving

in home

Experienced job oss, unexpected

medica bis, and divorce

ND, F

HNND, F


16/17

F F F

F F F

Wayne

There are no oca ofces, so a face to face with a rep. was

not an option.

had started a business with two other peope. ne died

suddeny and the other person took a the assets of the

business and iteray eft town. cant pursue ega action atthe moment for ack of funds.

am 62 years od and think that has a ot to do with the

empoyment situation. Were a younger person, may have

a better chance of empoyment in my trade.

The job market in Forida is shrinking and am not afraid

to try something ese but there are no opportunities.

Maria

The ender ony wanted to work based on what he wanted

& didnt take into consideration any of my suggestions.

We cashed out a our annuities, pension funds & ife

insurance in order to pay.

uring the short sae process, we got an incrediby good

offer, but [the enders] didnt want to negotiate, both their

expectations were competey unreaistic.

dont understand it. They wi both ose at the forecosure

court steps come November 2009.

The house needs repairs, the vaues in the neighborhood

keep coming down, so... dont understand their rationae.

Foreclosure Dae: 6/17/2009

ne dependent iving at home

Experienced job oss

Foreclosure Dae:Pending


housing costs

Two dependents iving in home


medica bis

p , F

pt, F


17/17

F F F

Gay

We caed a company that advertised loan

emodications and paid them over $3000 and they did

nothing, promised a refund or a but $500 fee and sti

have not seen the refund.

Had to go to ega aid, paid them more money was sent toan attorney paid her more money and sti waiting.

Homeowner begged for hep to the oan servicer in trying

to adjust the mortgage that cimbed without warning.

Her mother died, then her step father. savings was ost

to greedy reatives in Haiti. Grown chidren that contributed

to the househod moved out. The ony car broke down,

it has over 100,000 mies. No one to turn to. No savings

eft. ny ong hours on her feet everyday for many many

years.

t has been 9 mos since this homeowner had to stop

making her payments to survive and to eat. Nothing but

ost money and broken promises.

Foreclosure Dae:3/24/2009


housing costs

Two chidren and four dependents iving

in home


medica bis

ND, F

florida - the face of foreclosure

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