Orlando foreclosure rate drops

ORLANDO, Fla. (WOFL FOX 35) - New foreclosure numbers released on Thursday show the Orlando metropolitan area has dropped from the top 10 cities in the country for foreclosures. Though some are reading that to mean that the "beginning of the end" of the foreclosure crisis here, FOX 35 spoke with local economist Sean Snaith and Mortgage Broker Bruce Woodburn, who both say not so fast.

In fact, both predict another wave of foreclosures in the Sunshine State, possibly a big one. So what do you do if you're one of the thousands in a home you can no longer afford?

Woodburn says, "25 to 50 percent of the homes that are on the market right now are upside down...we know there are more foreclosures coming down the pike."

The fact is, Florida's housing market right now offers great opportunities for home buyers, especially first-timers. But for those of you without a job, and without a bank willing to modify your home loan, you need to be strategic.

Woodburn says, "I've already seen the short sale time frame speeding up a bit."

By definition, a short sale is when the bank agrees to allow you to sell your home for less than what it's worth. Come next month, new federal guidelines will mandate banks approve or disapprove short sales within 10 days.

Woodburn says the new guidelines are good news but still, "These are homes that are already in trouble...they're short sales. The people know their upside down and can't afford the payments, so it's either short-sale or foreclosure."

Though a short sale reflects more positively on your credit score, Woodburn says the higher number of short sales these days is skewing home sales statistics and foreclosure numbers, making them appear better than they actually are.

Also skewing the numbers are the thousands of people just sitting in their homes not paying their mortgage, just waiting out the often year long foreclosure process.

Woodburn points out, "There's nothing good about a situation of a short sale or a foreclosure, you're in trouble either way...most likely."