Politics, Wall Street, predatory lending, and bad loans are just a few of the generalizations that the public has attributed to rising foreclosure rates. However, a Florida Realtors® research study on foreclosures found a much more complex story.
Earlier this month, the Florida Realtors® announced the findings of their “Face of Foreclosure” research project (floridarealtors.org). The project was designed to establish the impact of foreclosure on the Florida housing market and home owners, as well as to assist Florida’s Legislature to decide what intervention (if any) is needed by pinpointing the causes of foreclosure.
The report cited a positive correlation between unemployment and foreclosure in the Florida cities that were hardest hit by the foreclosure crisis. However, the study’s interviews of families who are in foreclosure did not reveal one cause for foreclosure; the study revealed a trend of multiple factors as the cause of their financial challenges.
In the April 6th 2010 press release, Florida Realtors® vice president of public policy, John Sebree, was quoted as saying that “Contrary to what some researchers have argued, many Florida homeowners were not driven into foreclosure by simply being trapped in bad loans, or losing their jobs or taking pay cuts.”…”In most cases, it was a combination of rising living costs, unemployment or decreased pay, health issues and other factors that caused homeowners to get into trouble. Simple answers and trite political responses just don’t tell the whole story.”
You can view the full report on the Florida Realtors® research webpage (floridarealtors.org/Research), click on the title “2010 Face of Foreclosure.”
by Dan Krell © 2010
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