On Thursday, the Mortgage Bankers Association reported that Florida ranks third in mortgage delinquencies, second in foreclosures started and first in foreclosure inventory. At year’s end, 22 percent of mortgage borrowers were at least a month behind on payments.
Everyone pays, directly and indirectly, for these often vacant, blighted foreclosed properties. Abandoned homes can pose public safety hazards and further deflate property values. Cities and towns may have to maintain the properties at taxpayer expense. Nearly two-thirds of the 1,589 condo and homeowner associations surveyed recently by the law firm of Becker & Poliakoff say they face financial problems because of the foreclosure crisis. Homeowners who can’t pay their mortgage often don’t bother with association dues. Lenders that have been slow to foreclose often don’t pay outstanding maintenance fees.
Greenacres Mayor Sam Ferreri said several condo associations in his city are close to bankruptcy. Many can’t pay garbage collection fees to the city. “It’s the highest delinquency rate of garbage we’ve ever had,” said Mr. Ferreri, even though Greenacres has the lowest rate in Palm Beach County at $6 a month. “Do we raise our rates?” In Royal Palm Beach, the village is keeping up the lawns of abandoned homes.