Hundreds Of Local Homeowners In Big Trouble
LABELLE, FL. -- According to data provided by First American Core Logic, loan performance of 400 Hendry county homeowners with sub-prime loans indicates grave issues may be ahead for the local economy.
According to the latest data (as of January 2008), half of the sub-prime loans originated since 2005 are past due. 13% of the loans are now in foreclosure. The average loan balance is now at $144,209 and the average loan age being 23 months.
200 of the 400 loans were adjustable interest rates with interest rates averaging 8.4% at origination and are currently now at 9.15%. Another 100 loans will adjust interest rates this year, presumably at a higher rate.
200 sub prime loans were given to Hendry homeowners in 2006 and 100 loans were funded in 2007 and another 100 in 2005. 200 were for purchasing the homes and 200 were cash-out refinances. The average loan to value was 84% at the time of the origination. That equity has now disappeared. 100 of the loans also included a second lien at origination to allow buyers a smaller down payment or for equityline loans to those who refinanced.
There are 12,294 housing units in Hendry County.