Why Are There So Many Foreclosures In Orlando?

The question is, What Happened to Orlando Real Estate? A few years back Orlando was one of the leaders in the housing market. New home construction, downtown condos and existing home re-sales couldn't be purchased fast enough. At times it even seemed that price wasn't an option - it could always be flipped for a profit - or so was the mindset of the inexperienced or overzealous investor.

As neighborhood prices escalated, it was easy for existing homeowners to obtain a second mortgage or line of credit on their home. This was the perfect opportunity to do a little remodeling, pay off credit cards or purchase that something special - after all, there was now more equity in the home - at least on paper - for the moment.

Way too much 'creative' financing took place here in Orlando. Loans were given at 100%+ on the value of a home with the expectation that values would continue to rise. Teaser rates, and ARM's enticed new homeowners and even experienced borrowers. Once values started to fall, many homeowners could not sell their homes since they were upside-down with their mortgages.

• More on Orlando Foreclosures
• How to find Foreclosed Homes in Orlando
• Getting help when faced with a Foreclosure
• Real Estate Graphs and Statistics for the last year