Home › News › Local news
Cape Coral-Fort Myers area leads nation for foreclosures in July
RELATED STORIES
- $35M heading to Southwest Florida for foreclosures fixes
- Buyers descending on Naples area as home sales continue rebound
- Florida remains near top of foreclosures; filings double over last year
- Southwest Florida still caught in the foreclosure grip
- Collier, Lee foreclosures continue to soar
Related Links
More Local news
- Lee County Sheriff Alert: Possible child abduction in Lee County
- PHOTOS/POLL: Outspoken public takes full advantage of final public forum on proposed Alligator Alley lease
- Collier students and their parents get an education in college acceptance
Tell us about it
- What would you add to this story? Tell us what we missed.
- Do you have photos from this event? Documents we need to see? Share with us.
- Upload photos & videos
- More ways to get your stuff online and in the paper.
STORY TOOLS
Share and Enjoy [?]
FORT MYERS — It’s an unwanted honor. It’s an alarming distinction.
Cape Coral-Fort Myers claims the top spot in the nation for its foreclosure rate in July.
The area has surpassed Stockton, Calif., to become the country’s foreclosure leader, with one in every 64 households receiving a foreclosure-related filing last month — more than seven times the national average.
In Lee County, total filings grew to 5,310 in July, up 663 percent from a year ago and 42 percent from a month earlier, according to Irvine, Calif.-based RealtyTrac Inc.
“It’s nothing to take lightly and these are very abnormally high numbers,” said Rick Sharga, vice president of marketing for RealtyTrac.
The results were released early Thursday as part of RealtyTrac’s U.S. Foreclosure Market Report, which shows that, nationwide, there were foreclosure filings on 272,171 properties in July. The report tracks default notices, auction sale notices and bank repossessions.
In Collier County, 921 homes — or one in every 204 households — received at least one foreclosure-related notice in July. That was down 9 percent from June, but up 577 percent from a year ago, according to RealtyTrac.
The Naples-Marco Island area ranked 25th in the country for its foreclosure rate. In June, it was in 19th place. But Sharga said it’s too early to call it a trend.
“There is nothing to indicate yet that the area has turned the corner. You do have month-to-month variations occasionally,” he said.
Charlotte County had the fourth highest foreclosure rate in the state. There were 819 filings, or one for every 117 households, up 59 percent from June and 566 percent from a year ago.
Nationwide, foreclosure-related filings were up 8 percent in July from the previous month and 55 percent from a year ago.
One in every 464 households in the country received a filing last month.
Much of the problem can be blamed on poor lending practices and bad timing, Sharga said. Markets that saw rapid building and skyrocketing home prices have been hit the hardest. Many people have been caught with adjustable rate mortgages they can’t afford and owe more money than their home is worth because prices have dropped so much with a housing slump.
“It’s almost a perfect storm,” Sharga said.
In Southwest Florida, many investors who snatched up homes a few years ago hoping to flip them for a higher price are also caught in the foreclosure mess. Some purchased dozens of properties and then watched prices fall and buyers dry up as the once red-hot market cooled.
In June, new foreclosure filings — or default notices — reached record highs in Lee and Collier counties. But they fell slightly in July.
In Collier, 623 new cases were filed last month, down from an all-time high of 716 in June, according to the Collier County clerk’s office.
“There is a possibility that the June numbers might have had a small anomaly since the filing fees in Florida went up a little starting in July, and possibly some attorneys might have been trying to rush some in to avoid paying increased fees, but I can not tell for sure,” said Collier’s Clerk of Courts Dwight Brock in an e-mail.
In Lee, 2,301 new filings were recorded in July, down from 2,518 a month earlier, according to the Lee County clerk’s office.
Lee Clerk of Courts Charlie Green isn’t ready to say the tide has turned yet.
“June was our highest month,” he said. “But it had a higher number of working days.”
In the first 10 months of its fiscal year, which started Oct. 1, Lee County had 22,246 new filings, up from 6,496 for the same months a year ago, Green said.
His office has struggled to keep up. There’s a huge backlog of cases and Green hopes to change that by working closer with the attorneys filing the cases and by increasing the number of days for foreclosure hearings from one to three a week, he said.
There are thousands of cases in limbo right now, said Green, who plans to discuss the problem with Lee County commissioners at their board meeting next week.
“We’re hard at work on a plan to get this thing reduced. We thought the numbers would start to fall and they are falling some, but not significantly enough to catch up,” he said.
He said foreclosures need to be resolved as quickly as possible because they can be so harmful, driving neighborhood prices down as properties are neglected and abandoned.
“Foreclosures are like dry rot,” he said. “If your house is in limbo, no one is going to put money into it. No one wants to take care of it.” The rise in foreclosures isn’t all bad, he pointed out.
“There is a flip side to all these foreclosures. As grim as it is there is always light on the other side, and that is there has never been a better time in the last 20 to 30 years to buy a house if you’ve got the income. You can get the true value now that we’ve gotten off the false assessments and back to reality,” Green said.
“Unfortunately, a lot of people got taken for a ride,” he said.
In the last six months, sales in Cape Coral-Fort Myers area have been up anywhere from 29 percent to 43 percent over past year, said Brett Ellis, a Realtor with The Ellis Team RE/MAX Realty Group in Fort Myers.
“The buyers are out there,” he said. “It’s just there has to be affordability and now that is happening.”
He said the lower prices are helping to make up for higher living costs, with gas, food and other consumer goods on the rise.
“I think next year when property taxes come down again that will help as well,” he said.
He said Cape Coral and Lehigh Acres have been hit the hardest with foreclosures because so many investors purchased property and then found they couldn’t sell it.
Florida continues to rank near the top for its foreclosure rate. It was in third place for states, with one in every 186 properties receiving a filing in July. It posted the nation’s second highest number of properties with filings — 45,884.
Foreclosure activity was up 14 percent from the previous month and 139 percent from a year ago in Florida.
Nevada continued to have the highest state foreclosure rate, with one in every 106 households receiving a filing. It was followed by California, where one in every 182 properties got a filing last month.
Other states making the top 10 list for their foreclosure rates in July were Ohio, Georgia, Michigan, Colorado, Utah and Virginia.
Three California cities had the second and third highest foreclosure rates for metro areas in the country last month.
Merced earned the No. 2 spot, with one in every 73 households receiving a foreclosure filing. Stockton and Modesto were in “a virtual tie,” with one in every 82 households getting a filing.
Las Vegas had the fifth highest foreclosure rate. It was followed by three more California metros: Riverside-San Bernardino, Bakersfield and Vallejo-Fairfield.
Fort Lauderdale earned the ninth spot, and Phoenix took No. 10.
Nationally, bank repossessions were up 184 percent year-over-year. In Florida, they rose 678 percent.
RealtyTrac publishes the largest national database of foreclosure and bank-owned properties, with more than 1.5 million listings across the country. For more information, visit realtytrac.com.
Comments
This site does not necessarily agree with comments posted below. Comments are the sole responsibility of the person posting them. Break our rules, and we will ban you. No exceptions, no second chances. Read our privacy policy & user agreement.
The only good thing about this is people wanting to move here will be able to get a home near or on a Gulf access canal for a very low cost.
I bet if you look, most of these homes are speculator's houses. I know for a fact there was a lot of homes built back in '06 on spec. I feel for the people that had to leave their homes due to a down turn in construction. Hang in there residents that still live in the Cape, this down turn won't last forever. If you are like me and bought your house to live in, then, as long as you still have the ability to work and have a job, you will be fine.
#1 Posted by NeezDutz on August 14, 2008 at 8:02 a.m. (Suggest removal)
They forget to mention this is the 2nd busiest year in sales ever. The Cape is in a boom, but the media likes the negative aspect of reporting so they don't write about that.
01/01/08 thru 7/14/2008 SFR SOLD
Year #Sales AVG price
2008 Sold: 1891 AVG $214,833
2007 Sold: 1189 AVG $307,557
2006 Sold: 1804 AVG $331,875
2005 Sold: 2336 AVG $336,146
2004 Sold: 1748 AVG $234,037
2003 Sold: 1236 AVG $200,014
2002 Sold: 806 AVG $182,468
2001 Sold: 638 AVG $162,114
2000 Sold: 576 AVG $142,486
#2 Posted by Boldt on August 14, 2008 at 8:23 a.m. (Suggest removal)
Planeman10,
Unfortunately, your argument has it exactly wrong. Due to loose lending standards arising from deregulation of the financial systems (a Conservative agenda), many questionable loans were made to unqualified borrowers. These included investors who bought multiple properties in the hopes a few cosmetic fixes would result in a quick profit. Capitalism at its finest. When those banks (which take a risk when lending) started to realize massive losses, they wrote down the debt, and in the case of Bear-Stearns, Fannie Mae and Freddie Mac, were bailed out by the government (at tax-payers expense). This is completely counter to free-market economics.
So I agree that this should serve as a theme in the coming elections (local, state and national). I just believe that voters should understand that poor oversight and management of our financial systems significantly contributed to this crisis, not Liberals giving out handouts.
#3 Posted by Nuntius on August 14, 2008 at 8:30 a.m. (Suggest removal)
rationalon I see your out spreading your addvice ,sticking a knife in deep to the bone an giving it a twist.
By the way what part of the midwest are you from? But I will agree with you the education is the best way to go so a person can acquire a job that can help them in life. Good planing is a must if you want to succeed in life.
This is the loser chincieone LOL
#4 Posted by chincieone on August 14, 2008 at 10:08 a.m. (Suggest removal)
Nuntius...you nailed it exactly. This mortgage meltdown..brought to you by conservative deregulation...This Iraq war..brought to you by conservative bleeding hearts saving Iraq from Saddam.(Oh he had WMD..No he didn't?? It was all about the oil?? It wasn't about the oil?? Who the heck is in charge here??) This Enron blowup brought to you by conservative energy deregulation...If we work real hard maybe we can get a conservative slate elected in November who will repeal child labor laws so we can compete with China!! My 3 year old granddaughter could use a job.
#5 Posted by gna on August 14, 2008 at 10:49 a.m. (Suggest removal)
rationalone what in the world is wrong with you I was agreeing with you. I don't know if you realize it in your posting you come accross hard and very cold .
You never told me where you were from in the midwest. Or do you not want to answer? I have lived in Springfield Mo. my self and was wondering if it was close to where I had lived at on time.
#6 Posted by chincieone on August 14, 2008 at 1:04 p.m. (Suggest removal)
Dear #5 Bolt
Wonder how average sale price in 2008 of $214,833 is better than 2005 average sale price of $336,146.
I was taught that selling high was better then selling low.
#7 Posted by Grhorvath on August 14, 2008 at 1:52 p.m. (Suggest removal)
Thanks rationalone you answered my question. I do understand what people are going through and I think they do to with out you telling them. Thank you.
#8 Posted by chincieone on August 14, 2008 at 2:04 p.m. (Suggest removal)
Great news for me! Florida here I come!
#9 Posted by CarpetBagger2008 on August 14, 2008 at 3:25 p.m. (Suggest removal)
Here's an idea...Let's "READ" the paper work first to know exactly what you are getting yourself into. Second, know you rates...hello if it is 1000.00 a month now and you leave it open ended, then yeah you will be paying 2000.00 a month in 3 years! Half the problem is these illegals coming in blindly not reading or writing ANY english. If you move to the United States make sure you know the language (for those who are unsure of it these days..as myself it is ENGLISH) With all the law emforcment and hospitals and schools catering to these illegals and non speaking people, some people have forgotten that the one and ONLY language in the United States is ENGLISH! There for I do not feel one bit sorry for these people when they loose their homes to forclosure. It's their own faults. If you can't afford it or can just scrape by at affording it, then guess what...DO NOT BUY IT!!
#10 Posted by wolfpawz4 on August 14, 2008 at 3:35 p.m. (Suggest removal)
rationalone
You almost seem to gloat in the fact that those less fortunate then yourself are losing homes because they did not read the fine print, and signed loans that had adjustable rates etc. And/or made home buys at entirely the wrong time.
Where is the good Christian we all know and love? I know it is buried deep down in that chest somewhere, isn't it?
Poor choices made by others affect us all.
Even you high up on that pedestal. Get off your high horse and have an ounce of sympathy for your fellow man, is that so hard to do?
This fiasco will have repercussions for years and years to come. Grow a heart and have a bit of dignity and respect for those less fortunate, they all aren't flippers and speculators trying to make a quick buck...
#11 Posted by Jadip811 on August 14, 2008 at 5:12 p.m. (Suggest removal)
There are some good deals in Cape Coral, for example a 3 bedroom, 2 bath, 1,700 Sq. Ft. home for $60,000.
That is lower than the cost to build a similar home, NOT including the land!
#12 Posted by MJL on August 14, 2008 at 5:27 p.m. (Suggest removal)
Many people think that everyone who is losing their homes is because of bad decisions, stupidity, greed, etc. Say you bought a house 4 years ago as an investment. Rented it out, breaking even, hoping for the appreciation. Your insurance skyrockets after the 04 and 05 hurricane seasons, property taxes triple, you are now taking a huge monthly loss on the property, and the value declines substantially. I guess now that makes that investor stupid. You can now buy a duplex in GG City for under $100,000 that sold for $300,000 3 years ago.
#13 Posted by kira5189 on August 14, 2008 at 9:23 p.m. (Suggest removal)
Why thank you, thank you very much.
I am agnostic as well, but still learning as to what the world holds.
Why am I the idiot and you the genius?
While it is possibly true I seriously doubt it. If even half of the BS you spew in these blogs is correct,you would have zero reason to even be here, I have a tendency to beleive nothing you've written at this point.
I don't care how rich you frigging are, this affects you and your type A personality as well as anyone else.
So pull your head out of your arse and grow the **** up.
I am the keeper of my dreams as well. I live the way I wish to BUT I chose to have some compassion for those not as fortunate as myself.
You may view that as a weakness, but I don't.
#14 Posted by Jadip811 on August 14, 2008 at 11:15 p.m. (Suggest removal)
Rationaldillweed
Keeping telling yourself your satisfied and so throughly happy tonight as you m@sterbate yourself to sleep tonight alone in your "mansion"...
#15 Posted by Jadip811 on August 14, 2008 at 11:17 p.m. (Suggest removal)
OUCH!!
Jadip811 - 1
rationalone - 0
Ding Ding Ding..We have a new Champion!
#16 Posted by fishguts on August 14, 2008 at 11:43 p.m. (Suggest removal)
I think it is great - especially after reading comments on ndn during the past few years. The more that leave the better (at least the more clowns who came here to make a quick buck and lost out big).
I have no sympathy for those who bought properties/houses/condos (as in places that were not going to be their HOME) for investment. If you make this purchase you must realize that there is an inherent risk involved. Unfortunately, too many just figured that they were jumping into a gold rush with a guaranteed profit. Well, those left holding the bag lost... boo hoo. Next time (if there is one), maybe the money would be better off under a pillow then thrown into an ever dynamic real estate market.
On the other hand, those who purchased a HOME and are now having a hard time due to the recent changes in our country have a bit of my sympathy (which, may mean nothing as this is just my opinion... contrary to many who post on here thinking that their words are Bible material.)
#17 Posted by jim09091 on August 15, 2008 at 2:34 a.m. (Suggest removal)
I think you should both exchange personal email addresses and spare us the "who's better?" dribble. It's hard to find intelligent commentary between all this swill.
#18 Posted by botheyesopen on August 15, 2008 at 9:56 a.m. (Suggest removal)
Astroglide lubricant $13.95
Comcast Internet $54.95
Big Bertha Blowup doll $149.95
Poor man's mansion $1.5 mil
Saturday date night at home because Rational is lonely again...
$PRICELESS
#19 Posted by Jadip811 on August 15, 2008 at 2:47 p.m. (Suggest removal)
Huh,Question? I see no question of me from POST #7, #10, #12,#15,#23,#31?
Rational, the answer is your a moronic d@**chebag, now what was the question again?
Saw the doc today, he says I'm still a rip-roaring idiot, but witty and intelligent enough to keep you on your defensive toes...
#20 Posted by Jadip811 on August 15, 2008 at 2:56 p.m. (Suggest removal)
jimboaw,
As I understand it.........
The banks prefer to foreclose on the property. With the loss of value on many of these homes it is better for them to repo and resale.
They get the huge write down to the Government plus, they resale the house for less then the original mortgage was and come back after the original mortgage holder for the difference.
As opposed to working with the homeowner which may, or may not, end up back in the same situation down the road.
Or, he decides the house is worth so much less then he owes on it (given the downturn in values)and just walks away.
This is how it has been explained to me.
#21 Posted by Optipess on August 15, 2008 at 3:51 p.m. (Suggest removal)
Jadip and Rationalone;
Is this really where you want to be when Jesus returns?
:-)
#22 Posted by Optipess on August 15, 2008 at 3:53 p.m. (Suggest removal)
#36 there over in a different blog. I don't think I would go there unless you want attacked.
In your post #35 that was the same thing I was hearing my self.
#23 Posted by chincieone on August 15, 2008 at 4:23 p.m. (Suggest removal)
#36 Posted by Optipess
If you've read past posts from both of us you'd realize we're both atheists...
BUT I'm working on it, trying to learn Christianity, just having a tough time beleiving in something I can't physically see.
Kinda like what's in rationals pants. ( Sorry couldn't resist that one.)
Come to church on Sunday with me Rational, we can try and rationalize religion and find Jesus together, nice non-denominational church, a little singing, a really down to earth pastor named Ken Chickk .
I'm still working on my faith, as many there say , I'm a work in progress....
#24 Posted by Jadip811 on August 15, 2008 at 6:34 p.m. (Suggest removal)
Don't be tha way sweetie, think about all the fun your going to have with your big Bertha love doll tonight!!
#25 Posted by Jadip811 on August 16, 2008 at 6:52 a.m. (Suggest removal)
Post your comment
(Requires free registration.)