Bank Repossessions Slow in South Florida
Bank Repossessions Slow In South Florida
The real estate market in Southern Florida is showing strong signs of recovery, and a recent report issued by CondoVultures.com provides Palm Beach home owners with more good news. According to the report, bank repossessions decreased by 11% in South Florida in the third quarter of 2012 compared to the same time frame last year. The report included data collected from Miami-Dade, Broward and Palm Beach Counties. Lenders forced a change in ownership in less than 7,225 properties during the third quarter of 2012; in contrast, there were more than 8,200 lender repossessions in the third quarter of 2009.
Real estate experts have noted that the decline in repossessions is partly due to the unofficial moratorium on foreclosure filings that resulted from administrative irregularities in the repossession process that surfaced in 2010. Thanks to new federal guidelines, it's easier for banks to repossess and resell homes as short sales or foreclosed properties, which accounts for the upswing in market activity for this sector of homes.
Reports indicate that there were less than 1,000 distressed properties on the tri-county market as of October 8, 2012. Buyers are quick to scoop up distressed properties as soon as they hit the market, so buyers anxious to own Palm Beach homes offset the slight increase in inventory by acting fast. The Florida Association of Realtors reported that bank-owned condos and townhouses now represent approximately 5% of the total number of units on the resale market.
The National Mortgage Settlement Agreement is likely to have an impact on the Palm Beach housing market, but experts are hesitant to pinpoint the exact consequence. According to the settlement agreement, lenders cut a deal with the federal government to provide a minimum of $25 billion in relief to borrowers. Many home owners are now opting for short sales as a result of the settlement, and banks are offering refinancing options to some borrowers who are currently struggling with their mortgage payments.
If you would like some help with navigating the Palm Beach housing market, please contact our team of expert professionals. We'd love to give you the information you need to make an informed purchase of your next Palm Beach home.
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