Bank Foreclosure Homes Sale Still Surging in Orlando

by on cities

Properties listed for bank foreclosure homes sale are still surging in Orlando as unemployment in the area continues to worsen, based on data from the Florida Agency for Workforce Innovation and real estate information providers.

In 2009, the Orlando metro area was seventh among metropolitan areas with the highest rates of foreclosure in the U.S. In December, a total of 7,692 residential units in the area received default or foreclosure notices, a five-percent increase from 7,349 filings in November and a two-percent jump from 7,578 postings in December 2008.

Frank Rubino, a top executive of Chase Bank in Orlando, said that he is expecting a bigger number of foreclosure houses in 2010 in Orlando because of the still difficult economic conditions. He also added that the planned downsizing of the NASA space-shuttle operations in Brevard County would certainly cause more job losses and more foreclosures.

According to the state workforce agency, the November jobless rate in Orlando metro area hit 11.8 percent, a jump of 4.4 points from November 2008 and an increase of 0.3 points from October. The construction sector suffered the most in November, with a loss of over 13,200 jobs.

Orlando’s jobless rate even surpassed the statewide rate, which was 11.5 percent. More than 284,000 jobs were eliminated across Florida in November.

Either as a result of bank foreclosure homes sale or as a foreclosure prevention measure, a sharply increasing number of Orlando residents have also been filing for bankruptcy protection. In 2009, more than 20,000 bankruptcy filings were recorded in Orlando, a significant increase from about 12,000 filings in 2008. This month, about 500 bankruptcy cases have already been filed.

The increase in defaults, foreclosures, bankruptcies and jobless rates in Orlando all show the desperate situations of homeowners in the area. According to Rubino of Chase Bank, his bank has been doing its part in helping Orlando homeowners by modifying the mortgages of qualified customers even if they were in default by only 30 days.

Rubino said Chase has been cutting mortgage rates, extending loan terms and deferring principal payments to enable distressed homeowners to lower their monthly payments to affordable levels.

The prices of pre-owned single-family homes and condo units continue to fall in Orlando as bank foreclosure homes sale continue to surge. In November, the median condo price dropped to $55,000 while the single-family median decreased to $137,100. Statewide, the single-family median price dropped from $167,900 in November 2008 to $139,000 in November 2009.