Florida foreclosures rate is one of the highest in the country. In fact, the number of homes foreclosed in South Florida is expected to increase between 50 to 100 percent this year despite efforts of the U.S. government to help distressed homeowners save their properties.
In 2008, South Florida foreclosed homes filings increased to 75,730 from 33,154 in 2007. It is expected that 150,000 foreclosed homes filings will occur in 2009.
The unabated increase in the number of foreclosed homes in the state has created opportunities to realtors who invented unique ways to sell repo homes.
For example, real estate agent Marc Joseph uses a pontoon boat to show potential homebuyers foreclosed homes along the waterfront. Most of these distressed properties are priced less than half of their original market value.
In 2008, Joseph made headlines when he organized bus tours of foreclosed homes in Fort-Myers-Cape Coral area. This Florida area has the second highest foreclosures rate in the country in February 2009, with one per 65 homeowners receiving foreclosed homes notice for the month.
Data released by the Florida Association of Realtors showed that 78,676 condominium and single-family home owners were on foreclosure process between January and October of last year.
In the county of Palm Beach, 24,091 filings were reported, while Broward County posted 32,271 foreclosure filings.
On the positive side, single-family home sales in Lee County increased by over 100 percent last month, compared with February last year.
Some major challenges facing distressed homeowners are adjustable teaser rates, resetting of payment options and the large volume of mortgage loans.
On the given day, Joseph’s three-hour boat tour of foreclosure properties included four houses with one mansion originally bought for $1.1 million but can now be acquired for $669,000.
Four years ago, speculators took out no-down payment loans and built houses and subdivisions. It did not take long and foreclosure crept into these subdivisions and left a number of abandoned and vacant houses. These houses were supposed to be sold in the range of $260,000 but are now being offered by banks for about $90,000.
Joseph believed that the real estate market will bottom out in the coming 6 to 8 months and then will move upward as the supply of abandoned and vacant homes thinned out. As of now, repo homes will continue to dampen the housing market.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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