Bay Area foreclosures up from a year ago

TAMPA - The new housing report shows foreclosure rates in the Bay Area are on the way up.

According to First American CoreLogic, foreclosure rates are 10 percent higher in February when compared with the previous year.

The current foreclosure rate sits at 3-percent, and the report also shows many who are not in foreclosure are having problems paying their mortgages.

Maria Josefina Polanco is caught in the middle of the foreclosure crisis. She knew time was running out when she left the federal court house in Tampa last month. She had just met with lawyers for the bank that owns the house where she's lived for the past four years.

After some tough negotiations, she felt forced to sign an agreement that evicts her family on April 9th.

“It's really bad,” Polanco told Fox 13 in March. “I have two kids. I'm working very hard to get what I need to pay all my bills and take care of my kids.”

Polanco's father owned the home, and the $240,000 mortgage was in his name. Polanco says she thought her husband was making the payments of $1,400 a month, but says after her husband left her, the bank told her he had stopped paying.

Polanco starting making payments to stop the foreclosure, but couldn't afford to keep up. Fifteen months ago, the bank officially foreclosed, leaving her with almost no options.

“At the point and time when a judgment gets entered, you're pretty much up a creek,” said Attorney Charles Gallagher, who practices law in St. Petersburg.

He says once a mortgage company starts the foreclosure process, homeowners and even renters need to take action quickly.

“Six months ago, she had options,” said Gallagher. “When that judgment gets entered, your hands are tied.”

Since then, Polanco's situation has only gotten worse.

“I don't find any place to live yet,” she said.

Fox 13 tried several times to contact a lawyer representing the mortgage company, but no one returned our repeated phone calls.

With a deadline looming on April 9th, Polanco is hoping that someone will help her find a last minute solution.

Unfortunately, there are plenty of people in the same situation. Ever since the housing market went bust, Florida has consistently ranked in the top five states with the highest rate of foreclosures.

Earlier this year, the Obama administration announced Florida would be one of the hardest-hits states to receive $1.5 billion federal funds to fight foreclosures and underwater mortgages. The Florida Housing Finance Corporation has until next week to decide how to use Florida's $418 million slice of the pie. Their proposal is due to the U.S. Treasury April 16th.