Rising costs, falling values causing foreclosures
BY LISA NEWELL Gulf Breeze News lisa@gulfbreezenews.com

Foreclosures are spiking in Santa Rosa County.

"It's the worst I've ever seen it," said Deputy Clerk Joyce Watkins, who's been processing foreclosures in the Circuit Civil department of Clerk of Court's office for over eight years.

By the 13th day of June, Watkins and her department already had 31 foreclosures to process.

She compared the 71 foreclosures in May to the 48 foreclosures in May of 2003, a 147 percent increase.

Watkins said there was a drop in foreclosures after Hurricane Ivan hit the area in September of 2004, because a lot of homeowners were suing their insurance companies.

Now, she said she has process servers walk in with five or six foreclosures at a time.

However, there are many factors causing homeowners to default on their mortgages, and Hurricanes Ivan and Dennis are only pieces of a greater puzzle.

"I think it's as high as it is right now because people, when they plan for a home, have a certain amount they can afford. They have to pay their insurance and taxes, and it can put them in a bind. Insurance went sky high, mine tripled, gas is going up, groceries are going up because gas is going up. Everything is going up except salaries," Watkins said. Variable interest rates also contribute to the foreclosures.

Local real estate broker Sherlyn Waghalter of Re/Max on the Coast said a lot of homeowners got overextended on equity lines of credit after values spiked after Hurricane Ivan.

"People were taking tons of money out of their equity, buying boats or cars or whatever. Now they want to move or relocate and the value of their homes is 15 to 20 percent less. They can't afford to close and have to bring money to the closing table.

Waghalter said homeowners can avoid foreclosure by putting their homes on the market. However, competition is stiff, with over 1,929 single family homes available on multiple listing service in Santa Rosa County priced over $100,000.

"The home has to be priced right," Waghalter said. "Our values are dropping, and the home has to show well. Buyers can be picky now, so it is worth the amount to spend to get the house looking A plus."

Also, Waghalter said she's seen a spike in real estate sales, especially since interest rates are rising.

"It's six and a half percent, and it's still good, but people are starting to act now, during the window of opportunity while the rates are still low," Waghalter said.

Part of Watkins' job entails answering question from the people whose homes are being foreclosed, but she said there's nothing she can do to help them.

"The most I can do is tell them that it's a process you can go through," Watkins said.

After the homeowner has exhausted all efforts to pay the mortgage, a writ of possession is issued, giving the homeowner 24 hours to vacate the property.

If they don't vacate, an officer from the Santa Rosa Sheriff's office pays the homeowner a visit.

"It's not usually negative," said Janice Platt, civil division supervisor of the Sheriff's office. However, the situation can be heartwrenching.

"It is sad. You have people who have been buying a home for 14 years, let's say, and now they've lost it for some reason."