Nearly one in three Florida mortgage borrowers owed more on their loans than their homes were worth in the third quarter, according to a report issued by First American CoreLogic of Santa Ana, California.  Translated into cold hard numbers, that means that 1.2 million of Florida’s 4.2 million mortgages are on properties that are worth LESS than the debt owed on them.  That is a staggering number and a clear indication of just how tenuous the Florida mortgage and property market is at this very moment.  Worse still, if property values drop just 5% more, another 200,000 Florida mortgages would be added to that number.

This is not an issue solely related to the Florida mortgage and real estate market, either.  There are some 7.5 million properties nationwide that are currently worth less than is owed on them.  In all, it makes for a pretty gloomy forecast for the future, or does it?

There seems to be some reason to be optimistic.  It it obvious that some people are seeing opportunity where it concerns the Florida mortgage and real estate market.  Miami condo sales, once the deepest and darkest pits of despair where it concerns property values, are seeing an upswing in sales.  Moreover, while prices are down some 20% from this time last year, existing home sales are UP.  Existing home sales rose 5% in October from the same time last year, and that followed an increase in September’s numbers as well.  According to the Florida Association of Realtors, the median price of a home selling in October was $185,400.  In 2003 the median home price was $163,700, that translates to a 13.3% increase in a five year period, something which is much more reasonable and sustainable than the double digit increases we were seeing annually in 2004, 2005 and into the middle part of 2006.  The association said that Florida Realtors continued to report positive signs for the state’s housing sector in the third quarter, including an increase in pending home sales (based on contracts signed but not closed) and a slower rate of expansion of inventory levels in some areas.

Is it time to enter the fray?  Should you be looking into a Florida mortgage?  It couldn’t hurt to at least find out what you would be qualified to buy.  With the market having changed and tighter lending restrictions making it a bit more difficult to obtain a Florida mortgage, it might serve the “fence sitters” well to at least inquire as to their options.  There are bargains to be had now, that’s for sure.  Getting what you want now has it’s advantages over following the herd into a market with diminishing inventories.  It would certainly be worth the effort to give us a call and to at least see what kind of buying power you have in this market.  Give us a call today (561)743-6592 and let us tell you what your options are as far as obtaining a Florida mortgage and financing your home.  Mortgage rates right now (while not as low as they have been) are still attractive and as mentioned it can’t hurt to at least get educated as to what kind of purchasing power you have in this market.