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High gas prices hurting homeowners in Miami suburbPosted On Mon, March 7, 2011
Traditionally, high gas prices tends to hit commuters in the wallet the hardest. But in Florida, it's having a domino effect by impacting homeowners.
According to the Wall Street Journal, the problem is mainly occurring in communities that at one time were reasonably priced. For instance, in Homestead, Florida, the paper reports there was a flood of people buying homes in 2007 because mortgages were easier to get than in Miami. But being a town that's 30 miles from the city, homeowners were sacrificing a low mortgage for a long commute.
That long ride to work is now hitting home, as data prepared for the Wall Street Journal by CoreLogic indicates 44 percent of all mortgages in the Homestead area since November are delinquent. According to the data, of Homestead's 21,300 mortgages, 9,000 are in a state of severe delinquency.
The increasing costs of gasoline prices tends to affect insurance providers as well, as policyholders will sometimes drop their coverage plans in order to find an auto insurance company that's offering cheaper rates.
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