Flagler County, Florida, home to 50,000 people, even with such a low population compared to other counties hasn't escaped the foreclosure crisis. Foreclosure activity increased again in Flagler counties in April, with nearly 1,000 families facing possible loss of their home. Palm Coast, Flagler Beach, and Bunnell, the three largest cities are all feeling the strain brought on by the problem. Local municipalities are feeling the crunch, especially in the reduced tax revenues.

How is this small Florida County holding up? Sandra Negron, a long-time resident and real estate professional with over 20 years of experience offered a unique snapshot of what is happening in Flagler County.

When asked to summarize, Mrs. Negron stated that the current Flagler County foreclosure situation is moderate, with the Sheriff's office serving Lis Pendens at about 100-200 per week for both residential & commercial properties. The root cause in her opinion is subprime loans, adjusting ARMs, coupled with job loss & decrease in spending.

When asked she said the typical residence in foreclosure is a mid to upper middle class home worth between $150,000 to $300,000. Most foreclosures are occurring in single family homes mostly in the Palm Coast area where the population is comprised of the working class and retirees. In the unincorporated areas of Flagler County, like the Hammock Dunes and Hammock Beach areas, the typical foreclosure is an affluent three bedroom, two bath single family home or condo on the beach in the $750,000 range.

On the positive side Mrs. Negron did say the number of foreclosures is going down but many homeowners are still overleveraged with either zero, or worse yet, NO equity in their property. Many are filing bankruptcy. Others are trying to short sale through a realtor.

The general snapshot in Flagler County shows that Palm Coast, the largest city in the county, is overbuilt with spec homes and new construction. However, commercial condo projects are still underway but the city will no longer grant a building permit unless the contractor has a sales contract.

It appears this county may be on the rebound, but Mrs. Negron suggested that adjustable rate mortgages (ARMs) are ready to adjust soon so it might peak slightly before leveling off.

There may yet remain a bullet to dodge, but the relatively low population and higher per capita income here may work to alleviate the worst of the problem. Only time will tell how well Flagler County recovers.