The Aftermath of the Housing Boom is Followed by Foreclosure Doom in Homestead
October 29th, 2009
It is there for all to see – the aftermath of the housing boom is being followed by the foreclosure doom in Homestead.
Two of the victims are Alexandra and Waldo Cruz. They were lured into buying the cute property in Homestead with three bedrooms, two bathrooms and a garden during the time of the boom. But four years on their first nest is marked by foreclosure. They have time till next April to find another accommodation to shift to with their four children – their ages stretching from 3 months to about 15 years.
Alexandra has recently lost her job. At that time she was 9 months into her pregnancy. Two weeks previously she started on a new assignment and has to toil for 6 days in a week with less pay. Simultaneously her husband is not earning much from overtime. It led to the inevitable – they defaulted and endured foreclosure.
Across Miami-Dade property value has fallen drastically. Homestead has been the worst hit with no other city nearing its intensity. Here the foreclosure rate is 1:49. It is the highest in the county and the highest in the state.
Homestead has fallen again after having recovered from the damages of Hurricane Andrew that ripped across in 1992. The building boom was another type of deceptive hurricane with easy land, easy mortgages and easy home prices. It led to a veritable stampede among the shoppers. This was the first home buying occasion for many.
In 2007 Homestead had been lauded for being the city with the fastest growth rate in the county having a population of over 50,000 as per the findings of USA Census Bureau. Ned Murray of the Florida International University (Metropolitan Center) said, “Homestead was ground zero because so much new development was being built. Most of the people were buying on the margin; they were barely eligible for a mortgage.”
But the picture changed with the collapse in the real estate market and the exit of residents. Demographers opine that the population numbers have gone down by 1,800 in the past 12 months. This has had a negative impact on the tax collection. It contracted by about $1 billion or 24.7% over the last one year.
To grapple with its finances the cit has laid off 33 jobs and cut down its budget by $10.9 million. The police force remains the same. There has been no spike in essential services pertaining to electric and water supply as well as sewer and trash pick up charges.
- Bouncing Cheques Issued by Title Companies Lead to Foreclosures
- Increase in Foreclosures Prompting Class Action Legal Suits
- Avoiding Foreclosures by Walking Away From Loans are not Without Problems
- Foreclosure Assistance Being Taken on Tour by Housing Advocate
- Washington Mutual, the Symbol of the Foreclosure Crisis, Continues to be in Trouble
- The Consequences of not Paying Mortgages Can be Grim
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