In South Florida, only a fraction of a percent of prime loans were in foreclosure in January 2007. The figure jumped to more than 9 percent in August, according to California-based First American CoreLogic, a real-estate information company.

STANCHING LOSSES

The Florida Supreme Court is now considering recommendations that could help families like the Andinos.

Presented in August, the recommendations come from a 15-person emergency task force led by Bailey that spent 20 weeks putting together a comprehensive plan to alleviate the burden on the state courts -- and to provide a potential win-win solution for borrowers and lenders.

The recommendations include a statewide-managed mediation program for all cases involving homesteaded property mortgaged by institutional lenders such as savings and loan associations, local and regional banks, mortgage companies, finance companies, and commercial lenders. Borrowers are required to attend foreclosure counseling before mediation.

The Legislature has also passed a new law, effective Jan. 1, that requires all unlicensed loan modifiers, loan originators and mortgage lenders to get a state broker's license.

That will bring state laws in line with a 2008 federal law that requires brokers to renew their licenses annually, have background checks and pass a written exam following training. A nationwide registry that includes employment history and disciplinary action will be introduced in 2011.

In another effort to prevent further foreclosures, most Florida lenders began in August to require credit scores of 740 to obtain Federal Housing Authority loans, said Valerie Saunders, president of the Florida Association of Mortgage Brokers.

``Anything over 700 used to be a great score,'' she said.

As the foreclosure crisis deepens, many people have flooded not-for-profit organizations such as Neighborhood Housing Services of South Florida, which averages between 50 and 70 new cases a week.

``We tend to deal with more folks at the lower end of the income spectrum, but we also see people clearly in the middle income, and we just helped one guy in Coral Gables with a million-dollar house,'' said Arden Shank, the executive director. ``The median income of the people we are working with is going up.''

While most of the delinquent subprime loans have already worked through the system, there are some other mortgages that could ultimately lead to foreclosures when new rates take effect. Among them: adjustable rate mortgages that began as interest-only payments but will revert to full payments in the next couple of years, or those that give borrowers options on how they want to pay, including interest-only or partial interest.

``There are some ARM products still lurking in the shadows, readying to rear their heads,'' said Keith Gumbinger, a vice president at mortgage industry publisher HSH Associates in New Jersey. ``It will matter where the interest rates are and where the economy is at when those reset.''

THE WAITING GAME

For some, the first reset may not come until 2010 or 2011, Gumbinger said. ``That's why there could be some lingering effects down the road.''

Of 1.1 million loans with adjustable rates in South Florida, 53 percent have already reset. But at the beginning of August, another 22 percent were scheduled to reset in the next two years, according to First American CoreLogic.

Industry experts say the foreclosure crisis won't end until housing prices recover, not just flatten -- and until the employment situation improves.

``I've read guesstimates that some properties might not be back to the price borrowers paid for them for 10 to 12 years,'' Gumbinger said. ``It could be ugly for a while yet.''

The Andinos hope it's not too late for them to save their home. They have sold a vehicle and other property, cut back on cable, cellphone service and their annual Orlando trip with the kids, and now are at the mercy of their lender.

``I'm crossing my fingers every day and praying every night,'' Jose Andino said. ``We just need a second chance.''

For Marise Bazelais and her large extended family, which includes 11 children, it's already too late. After getting a four-day extension from the sheriff's office, they have until Monday morning to leave their Lauderhill house, which was foreclosed on in May. Bazelais said they have no money, no place to go.

``For now, to tell you the truth, my option is to take the kids in my car and live in my car with them. We don't have any idea,'' Bazelais said.

Miami Herald staff writers Tania Valdemoro and Monica Hatcher contributed to this story.

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