Bank Repos Grow 6% To Nearly 37,500 Properties In South Florida In 2013 Published on 1/21/2014 7:24:00 PM
Bank repossessions increased six percent on a year-over-year basis to nearly 37,500 properties in South Florida - the epicenter of Florida's highrise condo crash - in the year 2013 compared to the same January through December period of 2012 in the tricounty region of Miami-Dade, Broward, and Palm Beach, according to a new report from CondoVultures.com.
The South Florida region has now experienced nearly 229,000 lender repossessions - or court-ordered foreclosure sales - since the real estate crash began in 2007, according to an analysis based on Clerk of the Court records in Miami-Dade, Broward, and Palm Beach counties.
"Last year, bank repossessions in South Florida reached their highest annual total since 2010," said Peter Zalewski, a principal with the Greater Downtown Miami-based real estate consultancy Condo Vultures® LLC. "Going forward, bank repossessions in South Florida are expected to continue to increase for the foreseeable future following new Florida legislation aimed at speeding up the state's foreclosure process. It is unclear what impact the existing National Mortgage Settlement Agreement - implemented in February 2012 to incentivize lenders to work with borrowers in default to reach resolution - will have on Florida's new foreclosure legislation."
CondoVultures.com is scheduled to profile condo trends in the fourth quarter of 2013 in the 10 largest coastal markets in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach counties beginning the week of January 22, 2014.
The Condo Vultures® Market Intelligence Report™ is scheduled to publish a 10-part weekly series that analyzes the markets of Greater Downtown Miami, South Beach, Bal Harbour / Surfside / Bay Harbor Islands, Sunny Isles Beach, Aventura, Hollywood / Hallandale Beach, Downtown Fort Lauderdale and the Beach, Pompano Beach, Boca Raton / Deerfield Beach, and Downtown West Palm Beach and Palm Beach Island.
In the year 2013, repossessions in South Florida reached nearly 37,500 properties, representing an increase of nearly 2,000 properties from the year 2012 when banks took back - or forced the sale of - more than 35,400 properties in the tricounty region, according to government records.
In previous years in South Florida, lenders - and to a lesser extent other parties such as condo associations - forced a change in ownership of more than 34,900 properties in 2011, about 54,400 properties in 2010, more than 30,400 properties in 2009, less than 26,250 properties in 2008, and nearly 10,100 properties in 2007, according to government records.
As of January 21, 2014, nearly 1,950 bank-owned South Florida condo and townhouse units are on the resale market at a median asking price of about $109 per square foot in the tricounty region of Miami-Dade, Broward, and Palm Beach, according to an analysis by the licensed Florida brokerage Condo Vultures® Realty LLC.
The bank-owned condos and townhouses represent about eight percent of the total number of units on the resale market in South Florida, according to data from the Florida Realtors association data.
Additionally, nearly 1,500 South Florida condo and townhouse units are being marketed as shortsales on the resale market at a median asking price of about $93 per per square foot in Miami-Dade, Broward, and Palm Beach as of January 21, 2014, according to an analysis by the licensed Florida brokerage CVR Realty™.
The condo and townhouse shortsales represent about six percent of the total number of units on the resale market in South Florida, according to the data.
The available resales only reflect condos and townhouses that are being marketed on the Southeast Florida MLXchange.
Administrative irregularities in the repossession process - dubbed the "robo-signer" controversy - first surfaced in late September 2010, creating a "foreclosure freeze" that prompted many lenders to slow the number of defaults being initiated against borrowers in South Florida between October and December 2010 compared to the same three-month period in 2009.
The slowdown in the foreclosure filing process continued throughout 2011.
In February 2012 after months of negotiations, the nation's five largest mortgage servicers cut a deal with the federal government and the attorneys general from 49 states to provide at least $25 billion in relief to borrowers.
The National Mortgage Settlement Agreement incentivizes the mortgage servicers to consider various options – including principal reductions, mortgage modifications, and shortsales - before filing to foreclose on borrowers who owe more than their residences are worth currently, according to the agreement.
Even before the concerns about the legality of thousands of bank repossessions surfaced in the second half of 2010, lenders had already started to slow their foreclosure efforts due to the rising costs and difficulty involved with repossessing properties from borrowers in default.
With more than 386,000 notices of default filed against borrowers in South Florida between 2007 and 2013, the state court system was overwhelmed with foreclosure actions, according to the Condo Vultures® Foreclosure Database™.
It is important to note there are various stages to a residential real estate transaction in South Florida.
A transaction begins when a property is made available for sale and ends when a title is conveyed from one party to another party as a result of the recording of a deed with the local government.
As part of the process, a property typically goes under contract and into a due diligence phase by which a deal can be canceled.
The CondoVultures.com new condo sales report is based on completed transactions where a deed is recorded and taxes paid as a result of the sale.
Condo Vultures® LLC is a real estate consultancy and marketing company based at 425 NE 22nd St., Suite 409, Downtown Miami, Florida, 33137. Condo Vultures® LLC can be reached at 800-750-0517.
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