It has come FULL CIRCLE...

the default rate among homeowners in Florida has increase so dramatically that, according to CNN.com, Florida now ranks #1 in the country for the number of foreclosed properties within our state.

Here's what we are seeing right now:

• Rising indices tied to risky mortgage loans are forcing homeowners to default on their payments
• Huge tax and insurance bills are financially destroying otherwise capable homeowners
• Short Sales by banks are on the rise (owners sell for an amount less than the balance of their loan).
• Some homeowners are not even able to make the VERY FIRST PAYMENT due
• Sellers now have to compete with foreclosed/pre-foreclosure properties IN ADDITION TO regular "for sale" properties.
• "Flipping" properties is not so likely to generate a guaranteed profit, as many investors are finding out.

Some have indicated that the market is stabilizing - I was of that opinion during February, which was incredibly brisk activity-wise. However, I believe this is just the tip of the iceberg. Property tax modifications may salvage the situation but make no mistake about it - the amount of foreclosed properties in Florida will increase dramatically throughout 2007.