Foreclosure Fever Hits CA & FL Hard
Tuesday, January 29, 2008PAUL KANGAS: New data show California ranked first in the nation in total home foreclosure filings last year. Realty-Trac says the state logged more than 480,000 filings, followed by Florida with nearly 280,000 foreclosures. The housing crisis has become a big factor in the economic choices being made by residents of Florida voting in today's presidential primary. Jeff Yastine reports.
JEFF YASTINE, NIGHTLY BUSINESS REPORT CORRESPONDENT: You wouldn't call Sandra Sanchez a real estate speculator. The mother of two teaches at a private school. Two years ago, with a daughter headed off to college and the real estate boom in full swing, she purchased this house as an investment property. It seemed like a good idea at the time.
SANDRA SANCHEZ, FLORIDA HOMEOWNER: I'm looking at the ins and outs. Maybe this would be a good idea. But unfortunately, of course, the market took a dip not for the better, but for the worse.
YASTINE: Whether the owners of modest homes in working class suburbs or condominium towers still under construction, Floridians like the Sanchez family are being squeezed by decisions of their own making, as well as economic circumstances beyond their control. That's created fertile ground for GOP candidates trolling the state for votes in recent days, although Democratic candidates have pledged to stay away -- a punishment delivered by the national Democratic party because of the state's decision to move the primary earlier in the voting calendar. Jack McCabe, owner of McCabe Research, says the health of the real estate market remains a chief concern of voters here.
JACK MCCABE, CEO, MCCABE RESEARCH: Here in Florida, without a doubt, it's the number one issue, along with property taxes and insurance, because it's killing our real estate market between the three. The amount of foreclosures, these foreclosures, the homes and condos are sold at substantially reduced prices -- in many cases, far below even what the mortgage amount was. That affects every property around it and that they also go down in value. And that sets the standard from then on of what those properties are valued at.
YASTINE: The impact can be seen in cities like Lauderhill, a Fort Lauderdale suburb. Dale Holness, a realtor and Lauderdhill town councilman, says the city has seen its share of foreclosures and steep price declines.
DALE HOLNESS, OWNER, ALL BROWARD REALTY: In Lauderhill, in a condo development called International Village, last January, we had a sale of $192,000. Today, there's a property on the market there for $89,000. That's a big drop and it's all over. I handle quite a bit of (INAUDIBLE) now for Freddie Mac and it's sad to see how much foreclosure there is out there and how it affects peoples' lives also.
YASTINE: Sandra Sanchez, struggling now to make payments on two homes, thinks the GOP and Democratic candidates are beginning to pay attention.
SANCHEZ: I think they're seriously thinking about the matter. And they know that a lot of the votes come from the average people, so you have to focus on the needs of the average people. You cannot sit back and let things happen to people.
YASTINE: With that in mind, Sanchez says she'll vote today and reevaluate come November. She hopes her homes haven't been foreclosed upon by then. Jeff Yastine, NIGHTLY BUSINESS REPORT, Miami
