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Repossessed Homes for Sale in Palm Beach Still Surging

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By : John Cutts    99 or more times read
Repossessed homes for sale in Palm Beach, Florida are still surging as foreclosure filings continue to rise in the area, according to a real estate information provider.

In February this year, about 4,490 households in Palm Beach County received default notices and foreclosure deeds, marking a jump of 63 percent from the previous month and an increase of 68 percent from February 2009.

In nearby Martin County, foreclosure activity also stepped up, posting a 52-percent increase from January and a 13-percent jump from February 2009. In Saint Lucie County, foreclosure postings rose by 69 percent month-over-month and climbed up by 39 percent year-over-year.

Across Florida, foreclosure activity stepped up by 15 percent, while across the country, foreclosures slowed down by 2 percent.

Bill Davis, mortgage banker who heads Private Funding Specialists, said that the still rising unemployment rate and the still declining home values have been forcing homeowners into default and foreclosure.

After a time of holding on to their homes, homeowners got exhausted, and with their savings also wiped out, they gave up.

Davis contended that the surge in repossessed homes for sale was a result of one or a combination of three causes: more borrowers deliberately defaulted, lenders pursued and completed more foreclosures, or courts were able to move more of their foreclosure backlog.

For Myles Minns and other real estate investors, the increase in foreclosures also meant an increase in earning opportunities for them. Minns has been buying and reselling five properties a week, with some of them fixed and rented out.

In Florida, the judicial system for foreclosures is another factor for the unpredictable flow of foreclosures into the market. With all courts overwhelmed with foreclosure cases, many properties are in uncertain situations, holding up the foreclosure process and preventing these assets from getting sold and used.

When these properties are finally foreclosed upon, oftentimes they are released to the market at one time, driving prices further down. In Palm Beach County, prices of homes have plunged by 43 percent from peak levels in 2005.

In one report from another real estate firm, home prices in the metro area covered by Palm Beach, Miami and Fort Lauderdale were cut down by 14.9 percent, the highest among the areas surveyed.

The firm also reported that around 45 percent of all mortgages in Palm Beach County are underwater. With these figures, the number of repossessed homes for sale is expected to rise further and home prices are expected to fall down further.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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