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Foreclosures are down again in South Florida

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By : John Smith    99 or more times read
Breaking news this morning is that first foreclosure notifications issued during May 2010 in the South Florida counties amounted to approximately 4,300 – still far too many, but down 49% year-on-year. This is good news for all Americans. In the face of increasing prophecies of doom, is President Obama finally beginning to stem the tide?

These foreclosure filings are the opening moves in the increasingly complicated chess game of repossessing a bonded property through the courts. Per the lis pendens issued by the Clerk of Court concerned, the rounded South Florida county breakdown was as follows:

Miami-Dade 50% down
Broward 55% down
Palm Beach 36% down

A local realtor believes that the improvement is a knock-on from efforts being made by borrowers and lenders to avert foreclosures through loan modifications that are intended to make mortgages more affordable. This is not because the banks have decided to be kind, he added, but because it works out better for them too – they’ve finally learned that there are no winners in a foreclosure action, except the lawyers. The harsh reality that banks are beginning to learn to face, is that a short-sale is frequently less financially devastating for them too than a foreclosure, and also considerably better for their cash flow. With the principle of loan forgiveness taking hold, is Obama’s mortgage re-negotiation process finally becoming the flavor of the day?

In the course of 2009 banks and other lenders issued over 95,000 lis pendens notices of default against delinquent borrowers in South Florida. By way of comparison, the 2007 figure was around 33,000, and this jumped to almost 76,000 in 2008. Following this alarming rise, rounded South Florida foreclosure filings fell by over 20% during the first quarter of 2010, compared to the same period in 2009.

The situation improved even further May-on-May:

County May 2009 May 2010
Miami-Dade 1,900 1,000
Broward 4,450 2,000
Palm Beach 2,000 1,300
Total 8,350 4,300

The distribution between the three South Florida counties remained relatively unchanged too:

County May 2009 May 2010
Miami-Dade 23% 23%
Broward 53% 47%
Palm Beach 24% 30%

Miami-Dade includes Aventura, Coral Gables and Miami Beach. Broward is home to Fort Lauderdale, Hollywood and Pompano Beach, while Palm Beach includes Boca Raton, Delray Beach and West Palm Beach.

This is really excellent news for American home-owners and economists. In a recovery, success breeds success, and optimism is in the mind. If the Nation can just start believing that we can, then the United States of America is already halfway there.
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