Miami-Dade/Pompano Beach/Fort Lauderdale saw the nation's highest foreclosure rate, with 18.9 percent of homes with mortgages in the area being in some phase of foreclosure during December. When added to the percentage of homeowners who are more than 90 days delinquent on their home loans, the figures reveal that 23.6 percent of homes in the Miami-Dade area are in foreclosure or at risk for foreclosure. This represents close to one in every four of the greater Miami region's mortgages.
]]> Directly following Miami-Dade in foreclosure rates were four other Florida areas. Port St. Lucie ranked second at 16.7 percent, with Palm Coast following at third with 16.6 percent. Tampa was ranked fourth with a foreclosure rate of 15.9 percent, while Orlando had the nation's fifth-highest foreclosure rate at 15.6 percent.The data shows that Florida's foreclosure rates are more than three times higher than the nation's largest cities. With the average foreclosure rate among all of the United States' large cities recorded at about 1.8 percent, Miami's foreclosure rate alone rose 5.9 percentage points. Likewise, Jacksonville's foreclosure rate grew by 5.1 points, with Orlando's increasing by 5.4 points.
Many experts point to Florida's use of judicial foreclosures as a possible cause of the state's foreclosure problem. The foreclosure process is often significantly slowed in judicial states, with the average foreclosure taking more than 800 days to resolve in Florida. This is more than three times longer than what is typically considered sufficient. Struggling Florida homeowners clearly deserve better and need to have their problems resolved quicker.
Source: News4Jax.com, "Fla. cities lead nation in foreclosures," Carlos Barria, May 9, 2012
]]>While most experts say it could take some time for the market to recover, they say average prices are unlikely to fall further. According to the Zillow report, the average home price across Miami-Dade, Broward and Palm Beach counties is currently $141,300, about 1 percent higher than a year ago. The company estimated that South Florida's prices will increase by around 6 percent in the coming year, which would make South Florida "one of the nation's best-performing housing markets."
]]> A financial analyst with a South Florida consumer website said that more foreclosures are still on the horizon for the area, saying there is a still a backlog of foreclosures left over from the robo-signing scandal that has yet to be filed. At the end of 2011, Florida represented approximately 30 percent of the U.S.'s total foreclosures, at 550,000 properties near or in foreclosure.Still, experts say this "shadow inventory" is on the decline, which could be good news for homeowners facing foreclosures. The financial analyst explained that prices could still "soften," but that home values will not likely "drop another 10 percent." Once home prices stabilize, homeowners are less likely to experience drastic drops in the value of their homes, making it easier to avoid becoming underwater on mortgages.
Despite the improving market, foreclosures do remain a major problem for thousands of Florida citizens, for whom the news does little good. There are options, such as renegotiating a mortgage with the lender.
Source: LoanSafe.org, "South Florida Housing Market Has Hit Bottom, Zillow Says," Alex Ferreras, May 7, 2012
]]>Miami-Dade County experienced the highest foreclosure rate in South Florida in February at 17.57 percent, which is a decrease from this time last year. Palm Beach recorded a foreclosure rate of 12.48 percent in February 2012, a decrease of 1.02 percentage points compared to February 2011. Finally, Broward County's foreclosure rate fell by .54 percent to 13.98 for February 2012.
]]> Compared to the national average of 3.41, South Florida still saw a significantly higher proportion of foreclosures in February, although all three South Florida counties also experienced lower mortgage delinquency rates, each registering a respective decline of more than 1.5 percentage points.In contrast with the favorable report from CoreLogic, RealtyTrac issued its own report that claims South Florida saw an increase in foreclosure activity for the entire first quarter, with Miami experiencing a year-over-year increase of 37 percent, the report's fourth-highest increase. A total of 33 of the United States' 50 biggest metro areas posted increases compared to 2011. Orlando saw the largest increase at 52 percent. According to the RealtyTrac report, Miami saw the 13th highest foreclosure rate, while Orlando followed closely behind at 15th.
One expert theorized that the increases in RealtyTrac's report could be due to the recent settlement between banks and state governments over improper foreclosure filing practices. He suggested that the scandal caused foreclosures to slow greatly, with the resulting settlement prompting the pace of foreclosures to increase again. This means that South Florida residents should still be wary of foreclosures and a loss in home values.
Source: South Florida Business Journal, "Foreclosures down slightly in South Florida," Oscar Pedro Musibay, April 26, 2012
]]>It's a welcome sign for local real estate agents, who said they haven't seen the market this active since 2005. Since then, they speculated that many potential buyers spent a number of years saving money. After practicing financial restraint for so long, many are finally beginning to pull the trigger on homes that fit the lifestyles they have always wanted.
]]> In Sarasota County, home and condominium sales peaked at a seven-year high during March of this year. A lot of this activity has been anchored by luxury homes. In Sarasota County alone, real estate agents unloaded 34 different homes or condos for a price tag that eclipsed $1 million each. Some of them, like a Lido Shores home with six bedrooms, went for as much as $7.1 million.Regardless of price, the Sarasota Association of Realtors saw transactions involving 831 homes and condos during March within the area it covers. This was a 38 percent hike from February. This is also 3.8 percent higher than one year ago. In nearby Manatee County, these transactions rose by 35 percent from last month.
With a dwindling number of foreclosures and short sales in both Sarasota and Manatee counties, home prices have been able to come back up. The median price for homes in Sarasota County went up by 4.4 percent and now rests at $174,900.
It's not all peachy for local real estate agents, though. A sluggish inventory has dogged the market a bit. Many buyers searching for homes in these Florida areas have not been able to find what they're looking for. In fact, real estate inventory for the area has not been this low since 2004. For instance, the number of available single-family homes in Sarasota County is down 28 percent from one year ago.
One real estate agent said occasionally this could play in their favor. If a buyer sees the dwindling inventory, they might be quicker to buy.
Source: Herald-Tribune, "Luxury sales boost Southwest Florida real estate market," Michael Braga, April 19, 2012
]]>In reference to the data, a RealtyTrac representative explained that properties that are currently in the final foreclosure stages now started the process two years ago. When RealtyTrac first began keeping data on foreclosures in 2007, Florida's foreclosure process typically took less than six months. The process takes two months longer compared to the end of 2011.
]]> In the first quarter of 2012, Florida had the third-longest foreclosure process. All three of the top ranking states require foreclosure cases to be processed in the court system, extending the time it takes for banks to reclaim a delinquent property.Despite the long length of Florida foreclosures, the RealtyTrac report also revealed that South Florida saw 4,119 new foreclosure filings in March 2012, an increase of approximately 85 percent over March 2011's figures. Experts say that this means that lenders are attempting to push more foreclosures through the court system in order to recoup time lost due to the robo-signing scandal. The report also shows that 2,709 homes in Miami-Dade, Broward and Palm Beach counties represents a 25 percent decrease from February, but a year-over-year uptick of about 39 percent. Overall, Florida saw a 58 percent increase in foreclosures compared to March 2011 and a 13 percent increase compared to February.
A Miami banking analyst predicted that the growing trend of foreclosures shown in the recent report will continue. He explained, "I think we'll continue to see increases in Florida for some time, and all of this shows that the housing crisis is far from over. We're not going to hit bottom until we see all this excess inventory get out there."
Source: Orlando Sentinel, "Average Florida foreclosure - 2.4 years," Mary Shanklin, April 12, 2012
]]>"This is not about income," said an official with the NFHA, which investigates and researches discrimination in housing around the country. The official said the investigation reveals a pattern of behavior targeting minority communities of all income levels.
]]> The NFHA, one of a number of groups that receives federal funding to investigate possible housing inequality, conducted the investigation by identifying areas with high foreclosure rates and assessing the conditions of bank-owned properties in these areas. The investigation found that foreclosed homes in primarily white neighborhoods were 33 percent more likely to display professional real estate signs. Similar properties in minority neighborhoods often had poorly-constructed signs or none at all.An official with the American Bankers Association responded by explaining that lenders do not maintain properties based on their locations, and instead focus on trying to get as much money as possible from a foreclosure sale. The official declined to directly comment on the NFHA's recent findings.
The NFHA has not yet named the six lenders involved in the investigation, but it will do so when it files several complaints with the Department of Housing and Urban Development. By neglecting the homes, lenders are hurting other homeowners in the area, because a property kept in poor condition drives down the value of nearby homes. It only makes the housing problem worse.
Source: Huffington Post, "Banks Fail To Maintain Foreclosed Homes In Minority Neighborhoods: Report," Janell Ross, April 4, 2012
]]>While Florida may have not had the most total foreclosures during the 12-month period covered by the CoreLogic report, the firm noted that the state leads the country with a foreclosure rate of 12 percent. In February, listing firm RealtyTrac recorded Florida's foreclosure rate as being the fifth highest in the nation. Despite now having the highest proportion of foreclosures in the United States, Florida's foreclosure rate is down by 0.4 percent compared to a year ago.
]]> According to the CoreLogic report, foreclosures in South Florida have slowed somewhat since the time of 2011's corresponding report. While Broward County saw its foreclosure rate drop from 14.5 in 2011 to 13.9 in 2011, Palm Beach County saw a year-over-year drop of 1.2 percent, with its foreclosure rate falling from 13.5 to 12.3. CoreLogic says the markets of more than 60 major metro areas have seen similar drops in their foreclosure rates.CoreLogic's president issued a statement in which he explained how these recent figures could signal good economic prospects for Florida and the rest of the country. He explained that falling foreclosure rates "combined with ... better employment news and continued historically low interest rates are all positive signs of improvement in the housing economy."
Also expected to contribute to the market's increasing health is the landmark $25 billion settlement recently struck between several major lenders and the governments of Florida and other states. The new regulations and measures introduced by the settlement are expected to help Florida push through a large backlog of stagnant foreclosures.
Source: LoanSafe, "CoreLogic: 87,000 Florida Foreclosures in Past Year," Alex Ferreras, March 30. 2012
]]>Not every homeowner harmed by foreclosure abuse will get the relief they need. And the settlement was only reached with the five largest lenders. Thousands of Florida residents who fell victim to robo-signing will have to keep fighting to keep their homes.
]]> One Florida couple is fighting that fight, as they allege their house was foreclosed on without their knowledge. They argue that they were always on time with their payments, but that those payments never reached their lender.In court, the couple learned that the foreclosure on their home was being pushed through, and their attorney believes the document was robo-signed, meaning the lender pushed it through without giving the case the proper due diligence.
A real estate expert said that most victims of robo-signing could get between $1,500 and $2,000 from the national settlement, along with a possible mortgage reduction. But those payments could take a few years to reach the people who need them most.
It's important to keep up on all paperwork, and have a record of when payments were made. Even if a lender says they did not receive payments, you will have a record to prove that you were making them on time. Anyone who believes they were the victim of an improper foreclosure because of robo-signing should reach out to an attorney to determine how to keep their home.
Source: WPTV, "Robo-signing affects a Boca Raton family," Mike Trim, March 29, 2012
]]>Although nationwide foreclosure activity showed a year-over-year decrease of about 8 percent, Florida was one of 21 states that saw an uptick in foreclosures. That many states have not shown annual increases since November 2010, according to RealtyTrac's data. Overall foreclosure filings in Florida were 40 percent higher in February 2012 than in the previous year. This includes initial default notice, bank repossessions and notices of sale. Tampa alone saw 64 percent more foreclosure activity, more than any other metro area in Florida or the nation at large.
]]> South Florida saw a particularly large spike in repossessions, which increased by about 121 percent since February 2011. Statewide, repossessions showed a year-over-year rise of around 90 percent.Many foreclosure experts and analysts say the widespread increases in foreclosure activity are likely the result of the recent landmark settlement reached between several large U.S. lenders and state and federal officials. "The velocity of new foreclosures has doubled if not tripled since the settlement. It's like they've been given a green light to go ahead and prosecute," explained one foreclosure defense attorney.
RealtyTrac's CEO explained that the increase in foreclosures is an expected effect of the settlement, but that the foreclosure process will now work much better than before. He predicted that foreclosures will continue to come in steady waves throughout the rest of the year, but said he did not believe another spike will occur. RealtyTrac estimates that 2012 will have 1.9 million more foreclosures than 2011, but will still be lower than the 2.8 million foreclosures that happened in 2010.
Source: Palm Beach Post, "South Florida sees nearly 53 percent spike in foreclosure filings," Kimberly Miller, March 15, 2012
]]>HUD introduced the program in Miami in 2011 in order to teach homeowners the importance of avoiding questionable sources of relief from underwater mortgages. As the home of a large percentage of the nation's foreclosures, Florida represents a particularly attractive market for scammers. The goal of the new HUD program is to teach homeowners in Florida and other foreclosure-ridden areas the importance of seeking foreclosure relief through HUD-approved agencies, qualified attorneys and other reputable sources of aid.
]]> Since the onset of the foreclosure crisis, numerous homeowners have fallen prey to scams in efforts to save their homes from foreclosure. Homeowners often pay thousands of dollars to the groups and individuals behind such scams, many of whom claim to be associated with government agencies such as HUD. They prey on homeowners with fake lease-back financing plans and up-front fees. It is illegal for an individual or company to charge such fees in return for real or promised foreclosure relief."One should never have to pay for foreclosure counseling or assistance," explained a HUD official. HUD says that millions of homeowners facing foreclosure are vulnerable to fraudulent mortgage relief services, making it particularly important to teach homeowners how to identify scammers. It's important because once the money is gone, it likely stays gone.
Source: LoanSafe.org, "Mortgage Scam Prevention and Awareness Program Launched by HUD," Alex Ferreras, March 9, 2012
]]>The mayor said the incident has given him a better appreciation of the troubles that struggling homeowners are facing, adding that he and the bank had been trying to negotiate a deal, so he was surprised that the foreclosure action was taking place.
]]> Pierre purchased his home for approximately $353,000 in 2003, taking out a 20-year mortgage worth $282,000 in the process. In 2007, he refinanced to borrow several thousand dollars against his home. He later took out two more additional loans for $150,000 and $417,000, respectively, in order to fund home repairs. He explained that he had no problems making payments, even after the housing crash. However, his mortgage was worth $200,000 more than his home, even after a modification.Although he was delinquent on several payments, he said he was unaware that Bank of America wished to foreclose on his home. The mayor, who is an attorney, questioned whether it is legal for Bank of America to pursue foreclosure on his home while negotiations for a modification are taking place. The process is known in the industry as "dual tracking," and it has caught many homeowners by surprise. The recent settlement negotiated between the largest lenders and federal and state governments seeks to put an end to the practice.
Source: Miami Herald, "North Miami mayor faces foreclosure," Paradise Afshar, March 2, 2012
]]>Four people face charges after they were allegedly linked to a mortgage scam in Miami that reportedly tricked investors out of $2.4 million. Prosecutors in Miami-Dade County say the suspects unlawfully sold properties to investors, making it appear as though these properties were recently foreclosed and tricked a number of buyers into believing they were purchasing high-value properties for low prices.
]]> Investigators say the four suspects would convince each prospective buyer that their company could provide inside tips regarding homes facing foreclosure or properties on which taxes were still owed. The buyers were told that this would allow them to acquire great properties for highly discounted prices before they entered the public market.The suspects operated their scam using a front company, called Short Sale Inc., making them appear to be a legitimate and legal company. Investigators say the group used forged documents, further adding to their apparent credibility. All the suspects have been charged with grand theft and racketeering, charges that carry up to 21 years of prison time.
The inspector general for Miami-Dade County told reporters that investigators had identified 15 individuals or parties who were duped by the scam, explaining that he expected even more victims to come forward following the recent arrests. The prosecutor said that victims of the scam are unlikely to see any of their lost funds, as most of that money is now gone. Investigators say the suspects gambled it away and squandered it in other ways.
Source: CBS Miami, "Four Charged in Multi-Million Dollar Mortgage Scam," Feb. 22, 2012
]]>In total, Miami-Dade had 3,737 filings in January. Broward County experienced 11.5 percent more filings in January of 2012, increasing to 2,772. Palm Beach County was the only area in South Florida that had fewer foreclosure filings compared to 2011, decreasing by 4.5 percent to 1,982. Miami-Dade also saw the largest volume of filings at 1 in every 265 homes. Broward followed close behind with 1 in every 292 homes receiving a foreclosure notice, trailed by Palm Beach County with 1 in every 335 homes.
]]> According to RealtyTrac's report, Florida was only one of a few states that had an increase in foreclosure filings, which had been on a 12-month slide until January. In fact, Florida ranked sixth in RealtyTrac's list of the states with the most foreclosures. Default notices in the state also rose for the third straight month, a potentially negative sign for Florida homeowners.RealtyTrac's CEO says the company expects foreclosures to continue their ascent during the first part of 2012. He attributed much of this projected growth to the settlement reach between the federal government, states and the largest mortgage lenders. The settlement to which he refers was reached in order to correct improper filing practices by prominent U.S. banks, and includes specific instructions on how lenders must now conduct foreclosures.
Source: South Florida Business Journal, "January foreclosure filings grow by 50% in Miami-Dade," Oscar Pedro Musibay, Feb. 16, 2012
]]>The chairperson with the Board of the Miami Association of Realtors (MAR) announced the news, explaining that experts are expecting even more growth in 2012. "International buyers and investors have absorbed the excess inventory in existence two and three years ago, resulting in limited housing supply and now rising prices," said the chairperson.
]]> The data from the MAR considers both single-family homes and condominium to be residential properties. Sales of the former increased by 21 percent between quarter four of 2010 and 2011 while sales of condominiums rose by 25 percent in the same period. Across Florida, single-family home sales rose by about 7 percent, with condominium sales increasing by 4 percent.Officials with the MAR say home prices in the area have risen more quickly than anticipated, largely due to increased demand coupled with a limited supply of properties on the market. Another official with MAR explained that demand for Miami real estate should continue and increase due to Miami's ability to create "positive economic trends such as population growth, job creation" as well as enhanced consumer confidence and a lower unemployment rate. She explained, "Miami is a true global city, attracting attention on many fronts, including tourism, trade, banking and culture and arts in addition to real estate."
Source: World Property Channel, "2011 Was Record-Breaking Year for Miami Residential Sales," Michael Gerrity, Feb. 13, 2012
]]>A Democratic representative from Miami Beach argued that requiring foreclosure notices to appear in newspapers is a public benefit. Another representative claimed the bill could potentially discriminate against Hispanic homeowners, 36 percent of whom do not have personal Internet access. He argued that the bill could lead to more foreclosures and would potentially infringe upon homeowners' legal rights.
]]> The bill's Republican sponsor argued that current law is antiquated. He contended that more access is available via the Internet, instead of having to buy little newspapers. He also said that allowing foreclosure notices to be posted online would save money, with supporters of the bill estimating that it could reduce costs by two-thirds.The Keep the Public Notice Coalition, which includes the AARP, NAACP, Florida Press Association and several other organizations, lobbied against the bill, arguing that lenders should continue to post notices in newspapers as well as publishing them online for free. Conversely, the Florida Bar supports the bill, arguing that 70 percent of the public gets information from the Internet, while only about 20 percent read newspapers.
For those looking to fight their foreclosure notices, there are options available, such as negotiating a mortgage modification with a lender.
Source: Sunshine State News, "Online Foreclosure Notices Fail in House Committee," Jim Turner, Feb. 1, 2012
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