Moratorium Hurting Fort Myers Bank Foreclosures Market

by Peter Vernon on Foreclosure Crisis

The housing market of Southwest Florida is taking a beating from the foreclosure moratorium, according to a number of analysts, with realtors unable to continue selling Fort Myers bank foreclosures. Lee County, in particular, is feeling the impact of the nationwide mortgage industry investigation.

According to local analysts, the suspension imposed by lenders are hindering Lee County's program of getting foreclosures and pre foreclosures for sale back on the market as quickly as possible. The same is true for most of Southern Florida's housing markets, reports have revealed.

Florida foreclosure homes are piling up in the region, with thousands of them remaining unsold due to the moratorium, realtors have reported. Most of the realtors in the area are against the suspension of foreclosure sales, stating that this move has taken most distressed properties off the market and has discouraged potential buyers.

The region has thousands of bank foreclosure houses for sale waiting in the wings, with Lee County realtors revealing that local courts have an estimated 16,000 foreclosed property cases in their dockets. Most of these cases are on hold, pending the result of the nationwide mortgage industry investigation.

According to court officials who work on Fort Myers bank foreclosures, the hold has created a bottleneck in the selling market which means that once the investigation is over, these foreclosed dwellings will hit the market in huge numbers, creating further problems for the residential property industry.

People who work in the area's courts have also reported that the courts are receiving around 200 filings for foreclosures every week. The problem is that these filings cannot be processed as long as the moratorium is in place. Court system officials and employees are worried that the scenario will take jobs away from the courts and will hinder the recovery of the housing market.

The freeze on the sale of foreclosed properties was implemented by several lenders, including Bank of America, following news that some employees of mortgage firms process foreclosures without reading the documents first or checking their validity. Several other lenders have joined Bank of America and almost all of them have Fort Myers bank foreclosures in their books. Local analysts are worried that the longer the investigation goes, the more the housing market will deteriorate.