The Forever Wealth Club | Florida Foreclosures Halted for 45 Days

Article Reposted from Condo Vultures®

December 3, 2008

Condo Vultures® - Market Intelligence Report

Florida Banks, Credit Unions Halt Foreclosures

Florida banks and credit unions have agreed to voluntarily halt foreclosures actions statewide on primary residences for the next 45 days under an arrangement negotiated by the state’s Gov. Charlie Crist.

The industry associations for the 312 banks and 188 credit unions based in Florida announced the decision on Monday, Dec. 1.

Gov. Crist had been lobbying industry leaders since October on such a deal, going as far as to announce Thanksgiving week the potential for a 90-day foreclosure moratorium.

In the end, the Florida Bankers Association and the Florida Credit Union League agreed to a 45-day reprieve whereby state-based institutions and credit unions will voluntarily halt new foreclosure actions and sales through the middle of January on properties that are primary residences, or homesteads.

“Foreclosure moratoriums are a short-term, feel-good solution that will undoubtedly help morale during the holidays,” said Peter Zalewski, a principal with the Bal Harbour, Fla.-based consultancy Condo Vultures® LLC. “It is unclear, though, how and if the state’s foreclosure moratorium will impact today’s value-minded buyers who may need financing in order to purchase deeply discounted properties in Florida.”

Discount buyers have been busy picking up properties in South Florida.

On a week-over-week basis ending Dec. 1, the number of pending sales in Miami-Dade, Broward, and Palm Beach counties increased by 1 percent to 9,393 residences from 9,302 on Nov. 24. Simultaneously, the number active listings in the tri-county South Florida area decreased by -1 percent to 106,420 on Dec. 1 compared to 107,527 on Nov. 24, according to a report from Condo Vultures® LLC.

Still, Florida has had 166,600 foreclosure actions filed between January and October, which works out to 16,660 mortgage defaults per month. Florida’s volume ranks the state No. 3 in the nation for foreclosures, according to RealtyTrac.

The tri-county South Florida region of Miami-Dade, Broward, and Palm Beach is on pace to exceed 75,000 foreclosure actions in 2008, more than double the 33,154 notices of default filed by lenders in 2007, according to data from Condo Vultures® LLC.

The state's new foreclosure reprieve does not apply to investment properties or second homes, especially many of the 23,000 new units that were constructed in a 60-block stretch of Greater Downtown Miami since 2003.

To illustrate the depth of the real estate speculation in South Florida, consider Greater Downtown Miami developers had constructed in the same 60-block stretch only 11,500 units in the previous 40 years from 1963 to 2002, according to Condo Vultures® Official Condo Buyers Guide To Miami.

In 2007, three of the top five condominiums with the highest rates of foreclosures were located in a three-block stretch of Greater Downtown Miami’s Brickell Avenue area. Locals refer to the area as the city’s financial district, but some have begun to call it the foreclosure district.

Florida is not the first state to place a moratorium on foreclosures. California and other Sunbelt states instituted similar policies earlier this year. Many of the largest banks and financial companies in the country have also adopted policies to stem the mushrooming numbers of foreclosures, including Fannie Mae, Bank of America, JP Morgan Chase, and Citigroup.

“The question that remains is, will the new Presidential administration implement a Main Street bailout of the same size and scope of the program extended to the Wall Street companies?” Zalewski said. “If such a Main Street bailout program were to be introduced with a foreclosure moratorium aspect, the amount of new foreclosures in the future could potentially be dramatically reduced.”

Condo Vultures® Deep Discounts of the Week: Foreclosure Properties

Here is a list of some of the biggest discounts in the Vultures Database™ on properties going through foreclosure in Miami-Dade, Broward, and Palm Beach counties:

Miami-Dade County:
Aventura: There is a condo in foreclosure in Aventura discounted by -61 percent.
Bal Harbour: There is a condo in foreclosure in Bal Harbour discounted by -55 percent.
Bay Harbor Islands: There is a condo in foreclosure in Bay Harbor Islands discounted by -48 percent.
Coconut Grove: There is a house in foreclosure in Coconut Grove discounted by -73 percent.
Coral Gables: There is a house in foreclosure in Coral Gables discounted by -62 percent.
Fisher Island: There is a condo in foreclosure on Fisher Island discounted by -33 percent.
Miami: There is a condo in foreclosure in Miami discounted by -76 percent.
Miami Beach: There is a condo in foreclosure in Miami Beach discounted by -64 percent.
North Bay Village: There is a condo in foreclosure in North Bay Village discounted by -66 percent.
South Miami: There is a house in foreclosure in South Miami discounted by -44 percent.
Sunny Isles Beach: There is a condo in foreclosure in Sunny Isles Beach discounted by -75 percent.
Surfside: There is a condo in foreclosure in Surfside discounted by -55 percent.

Broward County:
Fort Lauderdale: There is a house in foreclosure in Fort Lauderdale discounted by -73 percent.
Dania Beach: There is a condo in foreclosure in Dania Beach discounted by -51 percent.
Hallandale Beach: There is a condo in foreclosure in Hallandale Beach discounted by -70 percent.
Hollywood Beach: There is a condo in foreclosure in Hollywood Beach discounted by -65 percent.
Oakland Park: There is a condo in foreclosure in the Oakland Park area discounted by -67 percent.
Pompano Beach: There is a condo in foreclosure in Pompano Beach discounted by -69 percent.
Wilton Manors: There is a condo in foreclosure in Wilton Manors discounted by -47 percent.

Palm Beach County:
Boca Raton: There is a house in foreclosure in Boca Raton discounted by -61 percent.
Boynton Beach: There is a condo in foreclosure in Boynton Beach discounted by -51 percent.
Delray Beach: There is a condo in foreclosure in Delray Beach discounted by -53 percent.
Hypoluxo Area: There is a condo in foreclosure in the Hypoluxo area discounted by -60 percent.
West Palm Beach: There is a condo in foreclosure in West Palm Beach discounted by -58 percent.

To get more information on these properties, please don’t hesitate to contact Condo Vultures® Realty LLC at 305-865-5629 or by email at inquiry@condovultures.com

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Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter’s blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™.