Miami experienced one of the highest quarterly rate of foreclosure per household by the end of the last quarter of 2007. The highest foreclosures by state were recorded in Miami-Dade County, which saw auctions of 987 foreclosed properties in the first quarter of 2008. This means the rate of foreclosures in Miami was 127 per 1,000 households. In the last couple of years, Miami has had foreclosure rates that were higher than national average and the primary reason being that most Miami properties attract investors who want to buy properties for sole reason of flipping them for a profit.
One of the places that saw a higher rate of foreclosure houses is the residential area of Hialeah Gardens, which has seen 1 in every 3 homes being foreclosed. With such a high number of foreclosures it seems like Miami is headed towards another stormy year. The problem lies with the fact that more and more people are taking ARM or adjustable rate mortgages, which reset after a certain period of time. As a result of this, most homeowners end up paying high interests in their monthly mortgage payments. The fact of the matter is that most homeowners are unable to pay the high rate of interest and this is the primary reason for such high rates of Miami foreclosures.
Once a home goes into foreclosure, a homeowner will not be able to buy it back or work out any solution whatsoever. The home will be auctioned where the highest bidder gets to keep it and the lender will sell it at a price lower than the actual value of the home. Most of the auctions in Miami has reaped rich dividends for investors.
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Written by Alex Rolim.
