Posted on Thursday, October 21, 2010
The freeze in foreclosures by some of the nation’s biggest lenders has taken a chunk out of the number of homes for resale in South Florida, according to a report from CondoVultures.com
The report finds that lenders have pulled 2.9 percent of the bank-owned properties from the market in the last week, as banks deal with questions relating to paperwork irregularities, which led to a federal probe into their foreclosure practices.
Earlier this month, Attorney General Bill McCollum joined with attorneys general from 49 other states in opening a joint investigation into home foreclosures.
As of Oct. 18, there are 3,921 bank-owned homes available for resale in Miami-Dade, Broward, and Palm Beach counties, according to the Bal Harbour-based real estate consultancy.
The current available bank-owned inventory total is nearly 1,000 less than the 4,846 bank-owned single-family houses, townhouses and condominium units on the South Florida market on Sept. 27, a week before foreclosure freeze made national headlines, CondoVultures noted in a news release.
"The bank-owned properties market has come to an abrupt halt in South Florida," said Peter Zalewski, a principal with Condo Vultures LLC. "Lenders are not sure if their paperwork was processed correctly, so many are erring on the side of caution and withdrawing bank-owned properties from the resale market at a pace of more than 300 per week in South Florida.
Zalewski said it remains unclear if shorts sales – a process where lenders accept less than the amounts owed by the borrowers - will be effected by the foreclosure freeze.
Read more: Foreclosure freeze puts dent in S. Fla. inventory | South Florida Business Journal