Residential Supply and Demand

Foreclosure freeze puts dent in S. Fla. inventory

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
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

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