Mortgages, Real Estate Fluctuating in Hernando County, Florida

Located on the Gulf of Mexico, Florida's Nature Coast is known for mermaids and manatees. Large, undeveloped lots and tracts of land. Springs and rivers that are 72 degrees year-round. "For Sale signs" and abandoned houses are becoming a part of the natural landscape as well. Surely a sign of the times that even the most remote areas aren't immune to.

Foreclosures on the rise

Inventories of houses for sale are growing everyday. Something that took this area by surprise. Last year in July, our house that was appraised at $250,000.00, is now worth around $200,000.00. This leaves us with negative equity in the home. It also lends to the rise in foreclosure rates. When there is equity in a house, you can refinance to get a lower interest rate and monthly payment. When there isn't sufficient equity, there is no chance of refinancing to get a lower payment. Thus the large foreclosure rate. In July of 2007, Florida was 2nd to California in foreclosure filings.

Lots of cleared land waiting to be developed

Less than a year ago, developers were clamoring to clear land and begin the process of installing the infrastructure for new neighborhoods. Today these cleared tracts of land sit barren, with the weeds being the only thing rising from the soil. There are 4 new developments within 15 square miles of our house that have now been abandoned, awaiting either bankruptcy or foreclosure. This is the norm nearly everywhere you go on the Nature Coast.

Banks are putting the clamp on mortgages