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Fort Lauderdale Bank Mowed by Foreclosure Properties Auction

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By : Allana Castro    99 or more times read
Bank of Florida-Southeast, a bank based in Fort Lauderdale, finally succumbed to the pressure of foreclosure properties auction on May 28. Two other Bank of Florida units, the ones in Tampa and Naples, were closed on the same day by the Federal Deposit Insurance Corporation.

Bank analysts said that nonperforming commercial properties and repossessed houses for sale largely pushed these banks down. In fact, the Southeast unit was done in largely by just seven mortgage loans, which had a combined total of $47.3 million.

Over the past 12 months, Southeast filed foreclosure actions for mortgages worth over $47 million, and as of the end of March, its nonperforming loans totaled to $63.3 million.

The largest mortgage loan that defaulted was the $11.9 million provided for the construction of mixed-use complex Park City in Hallandale Beach. Next was the $7.1 million loan provided to a shopping center development in Lake Worth.

Third was the $6.7 million granted to Lefta Enterprises and Diamond III for an office project in Davie. A $6.2 million loan for the construction of Crexent Business Center and a $5.1 million loan for the building of a corporate headquarters in Royal Palm Beach were among the commercial loans that failed.

Two failed projects financed by Bank of Florida-Southeast that could post more homes for foreclosure properties auction are the condo conversion development in North Miami by Burstyn Property and the townhome project by Flagler Beach LLC in West Palm Beach. The developers owed the bank $5.3 million and $5 million, respectively.

The number of Fort Lauderdale repossessed homes is still surging despite efforts to contain foreclosures. In the Fort Lauderdale-Miami metro area, over 52,200 properties were foreclosed in the first quarter, an increase of more than 10 percent compared to the previous period.

Similarly, pre foreclosures and repossessed homes in Florida surged in number by 7 percent over the quarter to a total of 153,540 filings. Of this total, over 22,000 homes or 14.4 percent were posted for foreclosure properties auction.

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