Saint Petersburg, FL (PRWEB) March 21, 2007
Credit Mortgage Group reports that Rising mortgage payments in Florida are putting many families at risk of losing their home or falling badly behind in payments. However, careful refinancing can eliminate that risk, and keep families afloat.
Three years after Central Florida's housing market turned red hot -- prompting families and investors to buy, buy, buy -- thousands of people are in danger of losing their homes because they can't make their monthly payments. The number of mortgage foreclosures is soaring this year. Foreclosures had been increasing -- first steadily, then sharply -- for months during the past year. But in January, lenders filed 1,787 foreclosure suits in Central Florida, more than twice the number compared with a year earlier, according to research by the Orlando Sentinel. "These were foreclosures that didn't necessarily have to happen" said Robert Markin, President of Credit Mortgage Group in St. Petersburg. "Many times the cost of a rising mortgage payment can put a homeowner in position to lose their home, but with proper advice and smart refinancing of their home, many of these tragedies can be avoided" continued Markin.
Why are so many mortgage payments rising to heights beyond the reach of the borrowers?
It's because there are so many adjustable-rate mortgages on the verge of pushing up monthly payments. What's going on? Many homeowners simply took on more debt than they could manage. Some, to get the house of their dreams, signed mortgages with adjustable interest rates that are moving upward. Or they took on loans with balloon payments they could not make. Many high-risk borrowers had no choice but to accept higher interest rates. Rising insurance and tax bills have only added to the pressures. The bottom line: Many homeowners can no longer afford their house payments. They've missed a few months, and now their mortgage company is suing, asking a judge to order the property auctioned off to the highest bidder to satisfy the debt.
Homeowners who can afford to pay their new higher payments are suffering too. Attractive adjustable rate loan payments from a few years ago, are now about to jump up as much as $500 a month. Borrowers with that kind of extra money to spend are finding themselves short on other things they need to pay for, or even finding themselves falling slightly behind on their other bills. It's a very stressful experience, but one however, which can be avoided.
What is a borrower with a pending payment increase to do?
Markin, of Credit Mortgage Group says "Get yourself prepared before your payment goes up. If you know your rate is going to adjust any time soon, get online and visit CreditMortgage.com, which allows you to request a quote for a new payment. You can lower you payment now, before your rate goes up, and you fall behind on your home payment or any of your other bills. There is really no need to wait until your situation gets out of control".
Florida homeowners are certainly facing interesting times. Stakes as high as losing their homes are pushing stress levels to all time highs. However, with proper planning, and in many cases, a good refinance mortgage company, homeowners in Florida can weather the storm, and maybe even come out ahead.