The sales freeze on foreclosures and real estate owned homes implemented by various lenders had no lasting effect on the housing industry of South Florida according to market experts. These experts revealed their observation during a conference held in Fort Lauderdale.
Attendees of the event were told by housing market analysts that despite the fact that inventories are somewhat tight, a big number of Deltona repossessed properties and foreclosed homes in various areas of Florida are still available for sale. Experts added that although lenders like JPMorgan Chase have pulled foreclosed homes from the market due to controversies surrounding foreclosure documentation, enough residential real estate remained in the market.
Florida repossessed properties and foreclosed dwellings number by the thousands, so supplies available to buyers and investors have not suffered, analysts have added. They also claimed that banks will probably review foreclosure processes until the end of 2010 and will likely resume full foreclosure procedures at the start of next year.
Most housing market observers expect that by January 2011, banks will be more aggressive in processing foreclosed and real estate owned homes in an effort to make up for the weeks that the moratorium was in place. They also stated that investors who have purchased houses with documentation issues are not likely to lose these properties and that the paperwork issue will not have a long-term effect on the residential property market.
Real estate lawyers have weighed in on the issue, asserting that even if documentation problems are found in some foreclosed and repossessed house listings, owners are unlikely to mount a legal challenge because the truth is that they do owe money on these properties that is why they ended in foreclosure in the first place.
In terms of title insurance, housing experts argued that investors and home buyers should not have any problem. They did however, cautioned investors and buyers to be more careful. Some analysts have suggested that inexpensive properties are probably the best bets right now.
They also advise buyers of foreclosures and real estate owned homes to hold on to the properties for at least three years and offer them as rental houses to generate income until they can safely unload these pieces of real estate.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.