Taking advantage of cheap real estate listings in Boca Raton as residential and commercial properties surge in number is a wise decision. Higher inventory of distressed properties means significant discounts.
In Palm Beach County, where Boca Raton is situated, 824 homes entered lists of bank owned properties in May, a spike of 65 percent from the 466 homes repossessed in the previous month and more than 5 times higher than the 136 units bought back by banks in May 2009.
The number of mortgages in default also increased compared to the previous month by 9 percent to a total of 1,628 notices. Both defaults and repossessions were higher in Palm Beach than in its neighboring counties of Martin and Saint Lucie.
It was not only Boca Raton bank owned homes that increased in May. A number of commercial properties in the area were also acquired by lenders in recent weeks. A corporate center owned by Shubh Boca Condominium was posted for auction after the $12 million mortgage loan owed to Broadway Bank remained unpaid. MB Financial assumed the center and other Broadway assets after the bank got shuttered in April. The Guest Suites hotel of Shubh was also targeted by another foreclosure lawsuit.
Analysts said that more commercial properties could enter cheap real estate listings in the coming months if currently distressed commercial loans are not rescued through refinancing or additional funding from investors. Based on a report by property research firm Trepp, more than ten percent of CMBS loans in South Florida are in default, higher than the nationwide commercial default rate of around 8.4 percent.