The Coming Wave of Foreclosures Could Devalue Florida Real Estate
The coronavirus pandemic has created many unforeseen consequences. An extended period of economic depression has created a record unemployment rate, which in turn has led to a record number of Americans facing eviction and foreclosure. The tide of foreclosures has been held at bay by a federal rule that temporarily halts foreclosures on conventional loans on residential properties, but this only delays the inevitable.
At some point, foreclosures will resume. When this happens, there is likely to be a wave of foreclosures all at once, created by the backlog of past due accounts throughout 2020. This, in turn, could have a devastating impact on local real estate markets.
What the Experts Predict Will Happen
The Orlando Business Journal spoke with McCabe Research and Consulting, areal estate firm, about how the Orlando real estate market would react to a sudden wave of foreclosures in 2021. The experts noted that a wave of foreclosures would suddenly add a lot of inventory to the real estate market. In Orlando, where home prices have been on the rise, the average home value would flatten – then drop as the housing market is flooded with more and more properties.
There is also the question of where Orlando residents would actually live. Right now, experts estimate that there is a shortage of 90,000 affordable homes and apartments in the Orlando area. As foreclosures are completed, these homeowners will need affordable housing, leading to a further shortfall in this segment of the market.
So what can homeowners do now to protect themselves? The most important thing is to get help as soon as possible. If you wait until the foreclosure ban is lifted, it could be too late to stop your property from going into foreclosure.
Seek Help with an Eviction and Foreclosure Lawyer in Florida
By consulting with a Florida foreclosure lawyer now, you can access the many programs that offer financial aid and legal assistance to homeowners. Call 407.452.4918 to schedule your free consultation with an experienced Casselberry and Oviedo foreclosure attorney at Quattrocchi and Torres.