Banks repossessed 16 percent fewer South Florida properties in the second quarter of this year than were seized during the same period a year ago despite an increased number of foreclosure filings in the tricounty region, according to a new report from Condo Vultures® LLC.

Lenders repossessed 5,992 properties in Miami-Dade, Broward, and Palm Beach counties between April and June of 2009 compared to seizing 7,098 properties in the second quarter of 2008. In 2007, lenders seized 2,167 South Florida properties in the second quarter, according to the report produced using court records.

"Government intervention - whether it be foreclosure moratoriums or mortgage modification programs - is the primary reason for the decrease in the number of repossessed properties," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC.  "That being said, the number of foreclosure filings are back on the rise in the tricounty South Florida region. It is difficult to predict if the foreclosure actions will ultimately end up as Real Estate Owned by banks known as REOs or simply nonperforming mortgages."

More than 52,000 foreclosures have been initiated in South Florida in the first half of the year, putting the tricounty region on pace for more than 100,000 actions in 2009. By comparison, lenders filed about 38,000 foreclosures actions in the first six months of 2008 and more than 75,000 actions for the year. In 2007, banks filed nearly 8,000 actions in the first half of the year and more than 32,000 for the year, according to data from the Condo Vultures® Foreclosure Database™.

Another factor contributing to the decreasing number of bank repossessions in South Florida despite the increasing number of foreclosure filings is the lengthy legal process necessary before a lender can repossess a residence.

To seize a South Florida residence, lenders normally anticipate a six month to nine month process that will cost between $40,000 and $80,000 per property. In addition to that, many lenders do not even file the initial foreclosure paperwork - known as a Lis Pendens or a Notice of Default - until a borrower is at least 90 days late on regularly scheduled mortgage payments.

Once a lender finally does repossess a property, the bank inherits the responsibility of settling up outstanding clouds on the property title that live on after the foreclosure, such as property taxes, past-due condo association maintenance fees, and open permits.  

On a county-by-county basis in the second quarter of 2009, Broward County, where Fort Lauderdale and Hollywood Beach are located, has the highest number of bank-owned properties with 3,149, up two percent from 3,075 REOs during the same period in 2008. In 2007, banks repossessed 701 properties in Broward.  

Miami-Dade County, where Miami Beach and Aventura are located, has the second highest number of bank repossessions in the second quarter of 2009 with 2,197 properties seized, down 26 percent from 2,975 REOs in 2008. In the second quarter of 2007, banks seized 1,046 properties in Miami-Dade.

Palm Beach County, where Boca Raton and West Palm Beach are located, ranks third with 646 bank-owned properties, down 38 percent from 1,048 REOs in the second quarter of 2008. In 2007, banks repossessed 420 properties in Palm Beach County.

Overall for the first half of the year, banks repossessed 13,303 properties in the tricounty area, up 12 percent from 11,860 seizures in the first half of 2008. In the first half of 2007, banks repossessed 3,510 properties in South Florida, according to the report.

$8,000 Obama Tax Credit Focus Of Free Educational Seminar

With the $8,000 first-time home buyers federal tax credit scheduled to expire in November, many purchasers are scrambling to figure out how to qualify for the Obama administration incentive before the offer disappears.  

Many of the answers will be provided at the upcoming free Condo Vultures® seminar on the "Dos and Don'ts" that every first-time home buyer needs to know before purchasing a deeply discounted residence in South Florida.

An all-star panel of South Florida experts is scheduled to discuss the nuances from 5:30 pm to 8 pm, July 28, at the Doubletree Grand Hotel in Greater Downtown Miami. Registration is required.

For more information, please contact John Fakler, executive editor of CondoVultures.com, at 800-750-0517 or by email at JFakler@condovultures.com.

Condo Vultures® Founder Appears On Miami Herald Webcast

Peter Zalewski, founder and licensed real estate broker of Condo Vultures® Realty LLC, appeared on the Miami Herald's The Business Show weekly program with financial journalist Niala Boodhoo.  

Condo Vultures® Deep Discounts of the Week: Foreclosures

Here is a list of some of the biggest discounts in the Vultures Database™ on  properties that are in the foreclosure process in Miami-Dade, Broward, and Palm Beach counties:

Miami-Dade County:
Aventura: Condo discounted 62 percent.
Bal Harbour: Condo on the intracoastal discounted 58 percent.
Bay Harbor Island: Condo reduced 60 percent.
Biscayne Park: Single-family house reduced 56 percent.
Coconut Grove: Single-family house discounted 54 percent.
Coral Gables: Condo reduced 71 percent.
Eastern Shores: Single-family house on a canal discounted 56 percent.
El Portal: Single-family house discounted 53 percent.
Fisher Island: Oceanfront condo reduced 60 percent.
Key Biscayne: Oceanfront condo discounted 44 percent.
Miami: Condo reduced 78 percent.
Miami Beach: Waterfront condo reduced 78 percent.
Miami Shores: Single-family house discounted 68 percent.
North Bay Village: Penthouse condo reduced 75 percent.
N. Miami: Condo reduced 82 percent.
N. Miami Beach: Condo discounted 83 percent.
S. Miami: Single-family house discounted 48 percent.
Sunny Isles: Condo reduced 73 percent.
Surfside: Single-family house reduced 61 percent.

Broward County:
Dania Beach: Single-family house discounted 46 percent.
Ft. Lauderdale: Condo reduced 84 percent.
Hallandale Beach: Condo reduced 64 percent.
Hollywood: Oceanfront condo discounted 72 percent.
Oakland Park: Single-family house reduced 77 percent.
Pompano Beach: Condo discounted 71 percent.
Wilton Manors: Single-family house discounted 75 percent.

Palm Beach County:
Boca Raton: Single-family house reduced 57 percent.
Boynton Beach: Condo on the intracoastal discounted 54 percent.
Delray Beach: Single-family house reduced 77 percent.
Hypoluxo: Condo on the intracoastal reduced 58 percent.
Palm Beach: Condo on the intracoastal discounted 57 percent.
Riviera Beach: Waterfront condo reduced 64 percent.
West Palm Beach: Condo discounted 83 percent.

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Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Don't forget to sign up for our weekly Market Intelligence Report™ for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™ or view our Video Gallery. Looking for bulk projects direct from developers or lenders? Visit the Condo Vultures® Bulk Deals Database. Our new books, the Official Condo Buyers Guide to Miami™ , Miami's Great Condo Crash: A Chronicle of the Boom and Bust™ , and the First-Time Home Buyers Guide To South Florida™ are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database™. This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it

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