BY WILLIAM BETANCOURT

There were a total of 83,445 residences listed for sale in South Florida as of June 12th, 2009. Of that, 25,814, or 31 percent are in some stage of the short sale process, according to a new report based on the Condo Vultures® Foreclosure Database™.

“The month of May proved to be  busy at the courthouse recording office accounting for 1,899 new Lis Pendens filings in Miami-Dade County, 4,442 filings in Broward County, and 2,661 filings in Palm Beach counties, respectively,” said William Betancourt, a licensed Florida real estate agent and short sale specialist with Condo Vultures® Realty LLC. “The real story is the 2,866 filings in Miami-Dade, 4,223 filings in Broward, and 2,029 filings in Palm Beach in the previous month of April and what June has in store ending the second quarter with more distressed inventory. The spike isn’t likely to continue to rise.

"However, we will still see a continuing stream of filings throughout the remaining two quarters.”

Over the past two months, 18,120 new properties are in pre-foreclosure in the three counties. Broward County accounts for 47.8 percent of the new filings, with Dade at 26.3 percent and Palm Beach County with the remaining 25.9 percent, according to the Condo Vultures® Foreclosure Database™, which tracks the filing of Lis Pendens notices through court records since January 1st, 2007.

To date, the database contains more than 158,000 filings.  

Many sellers faced with the legal and financial implications that a foreclosure can bring are unsure what to do next, Betancourt said.

Sellers may look to consult an attorney who will help them stall the foreclosure process and explain their legal rights.

The problem is many sellers already facing financial hardship will find that many attorneys will not handle the case without some upfront retainer.

Short sales tend to be a long and time-consuming process for all those involved and the outcome is not always a successful negotiation with the lender, Betancourt said, noting that seller’s making the decision to enter a short sale must provide the bank with a package of documents containing the following: 

•two years tax returns
•last two months bank statements from all accounts
•last two  paycheck stubs
•a financial analysis form
•a hardship letter 

In addition most lenders require once the short sale packet is submitted and approved, that the seller provide the bank with a listing agreement showing its exposure to the MLS.

It is important to work with an experienced Realtor both on the buy side as well as on the sell side when dealing with short sale transactions, Betancourt said.

The problem, he said, is that the sheer number of properties being forced onto the market place has overwhelmed many realtors with short sale listings lacking the experience and/or time to handle the short sales.  

“Not all attorneys and Realtors are necessarily experts in negotiating with the lenders,” Betancourt said. “Many sellers are finding it extremely frustrating having their financial future in the hands of inexperienced professionals.”  

The influx of properties is likely to continue over the remaining two quarters with the pace of defaults slowing down toward the beginning of 2010, Betancourt said.

Owners who have received a foreclosure notice are encouraged to speak with an experienced professional to explain all of their options and list with an experienced real estate agent and short sale negotiating team that has the resources to handle the sale efficiently and effectively.

William Betancourt is a licensed real estate agent with Condo Vultures® Realty LLC, a licensed Florida real estate brokerage operating in South Florida. William can be reached 305-865-5629.