169,401 New Listings - March 2010 - Last update March 15, 2010 6:15 AM ESTIncrease in Foreclosures in Golden Gate Estates
There is a sharp increase in foreclosures in Golden Gate Estates. It is the worst hit in Collier County. The ambience here is green and rural and is home to the working people. The year has been unkind to them with a ferocious attack from foreclosures.
During the first nine months of this year, according to the findings of The Bidder’s Broker in Naples about 45% of the total number of houses are in foreclosure. It has scathed 676 houses. Ross McIntosh of The Bidder’s Broker says that it does not mean that so many reo houses have been sold.
Golden Gate Estates have been especially vulnerable to foreclosures because many of the residents have become unemployed. In some cases working hours have been reduced. Consequently the borrowers can no longer be current on their mortgages. Other borrowers have been put in a tight corner because of the sub-prime adjustable rate mortgages. Their monthly instalments have almost doubled in recent months. The halcyon days of rising property prices are over. During that time many refinanced and took more money out of the equity. This just landed them up with more debts.
McIntosh said that a majority of the foreclosure victims in Golden Gate Estates are those who are occupants of the houses – the houses are their homes. For many the situation is upside down with the value of the house becoming less than the amount of the loan. Overvaluation led to taking overloaded loans. Tony Perez is a realtor in Naples. He opined that the reason for so many foreclosures in the Golden Gate Estates is because during the boom time this region “was the last area of affordable single-family homes in Naples.” He was busy with buyers who had been pushed out of overcrowded Miami into Golden Gate Estates. Those who could not get a house here relocated to Cape Coral and to Lehigh Acres. In the latter two areas the foreclosure rate is significantly high.
During the boom years the lending standards were lax and too many purchased reo homes they could ill afford. Others bought houses as an investment hoping to net in high profits.
Mortgage broker Brandon a. Sciuto commented, “A lot of people just overshot. They are living above their means.” His firm Naples Realty Services focuses on those who are facing foreclosures. In “liar loans” the borrowers did not give the true picture of their income. Those who did so will not now get the chance to modify their loans.
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