Sarasota Foreclosure News

More than 1,800 homes in Southwest Florida slipped into foreclosure in March, bringing the region's total to about 5,500 so far this year and signalling that the phenomenon is far from over, analysts said.

Moreover, the company that tracks foreclosures noted that default notices and bank repossessions spiked 57 percent and 129 percent, respectively, nationwide last month while auction notices rose only 32 percent -- demonstrating that more and more homeowners are simply handing their properties directly over to their lender.

"More and more people are walking away from their mortgages," said Paul Kasriel, Northern Trust's chief economist. "In some cases they simply can't meet the new interest rates being adjusted to. In other cases, people are saying: Why continue to pay on this house that is losing money?"

As banks foreclose on more property, chances are they will slash prices to get the real estate off their books, observers said. That will likely drive the median house price lower, and could make it more difficult for homeowners and their real estate agents to sell homes that are not subject to foreclosure.

During March, Manatee, Sarasota and Charlotte counties had a 4 percent increase in foreclosure filings to 1,830 from 1,759 the month before. Year-over-year, foreclosures in the three-county area are up 239 percent, said RealtyTrac

Last modified: April 15, 2008 12:25pm