Puerto Rican foreclosure crisis sends residents flooding to U.S.

Mortgage

Puerto Rico is seeing for sale signs go up everywhere as its failing economy is throwing its housing market into a foreclosure crisis.

The economic crisis is sending Puerto Rico’s residents, who are also U.S. citizens, fleeing to Texas and Florida, according to an article by Heather Long for CNN Money.

Amidst the buyers’ market on the island, some three-bedroom, two-bathroom homes on the beachfront are selling for less than $100,000, the article explains.

From the article:

The island has lost over 10% of its population — roughly 440,000 people — in the past decade. The exodus appears to be accelerating since the island defaulted for the first time ever in August.

“People are literally leaving their homes empty with the keys in the house,” says retiree Maria Milagros Rodriquez. They let the bank deal with it.

Recently, Puerto Rico voted to become the 51st U.S. state, however due to its struggling economy, it is not likely to make a difference.

If it were a state, the island would rank second in the U.S. for homes in foreclosure, according to RealtyTrac, lagging behind New Jersey.

From the article:

Puerto Rico has more foreclosures now than the national average at the peak of the housing crisis in 2010, says Daren Blomquist, vice president at RealtyTrac.

And it’s only likely to get worse. More and more homes are entering the foreclosure process. It’s another blow as the island tries to deal with its recession and $70 billion in debt.

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