Pace of Bank Owned Property Listing in Florida to Surge

by Donald Hanz on Foreclosures

The pace of bank owned property listing in Florida will surge again in the coming months despite a slowdown in April because of the estimated tens of thousands of foreclosure cases still in county courts throughout the state.

This was the statement of prominent economists who have been analyzing the housing trend in Florida over the past several years. They explained that house prices across the state are still falling, with some metro areas experiencing the sharpest declines in the country. In addition, distressed homes are not being sold off quickly because their cases are still in courts.

They explained that unlike California, which allows non-judicial foreclosure proceedings for some cases, Florida requires that all foreclosure actions must pass through the courts. This has increased the backlog in Florida courts, preventing the resale of homes that have been clearly abandoned by owners.

There have been efforts early this year to shift to the non-judicial foreclosure system and facilitate bank owned property listing and cleanse the state housing market of foreclosures. But the proposal perished during the committee process.

The state has been launching various schemes to contain foreclosures, but they all failed to make significant dents on volumes of repossessed houses for sale. The state has launched a compulsory court-supervised mediation program and a mortgage document verification program, in addition to the federal Home Affordable Modification and Foreclosure Alternative programs.

In April, the number of Florida foreclosures for sale jumped up by more than seven percent to a total of 9,259, increasing the REO total for the first four months of the year to 31,309 units.

Recently, the decision of Bank of America to collect a certain amount to close a short sale for distressed homeowners with other assets may contribute to further foreclosures. BofA said it will help the really troubled homeowners but will not allow borrowers with assets to simply go through short sales without paying anything.

In any case, the predicted surge in bank owned property listing in Florida can be contained if the state can generate plenty of jobs for residents.

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