May 29, 2024


Mad about real estate

Crisis of Foreclosure in South Florida

If you believe that the foreclosures torrent that affects each city and almost each street and neighborhood within South Florida is already as bad as it could every be, here is the harsh and brand new truth for you: a brand new foreclosure wave is trying to make its way throughout the courts, which has nothing to do with subprime loans that are exotic, flippers of real estate that merely want to make fast money or people who buy much more housing compared to what they can actually afford. Today, double digits of unemployment, dropping prices of homes and the still-lingering recession can be claimed. The second wave of foreclosures is sure to come as the amounts are already staggering.

While the second year quarter was going on, almost one out of four home loans in Florida were already past due, if not already in foreclosure. This made Florida a highly delinquent state within the nation. This could seriously delay any recovery to be found in Florida since markets with a lot of foreclosures is sure to send housing prices down. The county of Miami-Dade in Florida happens to have the second top rate of foreclosure, after the county of Osceola in California. Broward ranked as number six. Plus, RealtyTrac’s tracking of foreclosure has found that the epicenter of this boom merely two years back, known as Homestead, had the top rate within brand new filings of foreclosure within the county. Things could get much worse.

Brand new filings of foreclosure within the counties of Monroe, Miami-Dade and Broward are slowly finding themselves into the top 120,000 within this year. Clerks of court state that filings might even go up to 135,000, which is from 17,000 up to 32,000 more compared to last year.

These statistics tend to be played out everyday within neighborhoods like Malibu Bay, the gated community within Homestead where values of property have significantly plummeted. Two-bath, two-bedroom homes that used to sell for around $242,000 within the month of August in 2006, for instance, are now listed for around $70,000. Malibu Bay happens to be a community, which is quiet and well-manicured, filled with sand-colored homes that have no signs of foreclosure in sight. However, as with a lot of neighborhoods in South Florida, this serene picture is merely a mask to its true secrets. Within a stretch of 200 yard in 11th Drive within the section of Ventura in Malibu Bay, around 14 of 48 of the townhomes are already within a stage in foreclosure. Even though the grass remains trimmed by their association of homeowners, a lot of these homes are vacant and shuttered and the doors are padlocked.

Leslee Ramos is one homeowner who hardly visits her townhouse of three bedrooms within Malibu Bay that Lennar Corporation built during the boom of housing; however she did check on it recently. Ramos moved in there within the month of October in 2006, shelling out $255,490. Now, this same home is only worth around $121,800 in the property records.