Florida is one of several states that was hit the hardest by the mortgage loan crisis and recession. Even with a rate doubled the national average, industry analysts suggest that a recent 2 percent drop in rate so far this year is a promising sign of recovery.
The national mortgage delinquency rate fell to 7.09%, the lowest since the crisis began in 2008. Lenders initiated fewer foreclosures in the last three quarters of 2012, compared to the year before. Further, some of the hardest hit states are seeing even bigger drops in the foreclosure rate. With nearly 12 percent of all mortgage loans in Florida currently floating in the foreclosure process, many have failed to notice that the overall trend is actually decreasing at a rapid pace.
Florida is a judicial foreclosure state, which requires court approval for a lender to foreclosure. Often taking upwards of six or more months to complete, the Florida courts are backlogged from filings on loans that were issued during the lending boom. As lenders flex delinquency options and more homeowners seek foreclosure help in bankruptcy court, it is expected that the rate will continue to decline significantly in the coming months.