Florida’s Foreclosures Not Going Away Anytime Soon

by Isaac Benmergui, Esq on June 15, 2012

Although Florida’s real estate market is recovering faster than the rest of the country, thanks to the booming Miami market, the high number of distressed homes could slow or reverse that phenomenon.

More than 1.1 distressed homes will come to the Florida housing market at some point. More than half a million mortgages are closing in on the 90-days delinquent mark. More than 350,000 foreclosures remain tied up in litigation due to the robo-signing scandal.

The “shadow inventory” of foreclosed homes is more than 6.8 times the number of listings on Realtor MLS systems throughout the state, and it will take years for the market to absorb and clear out that inventory.

“Whenever I hear people talk about foreclosures ending in Florida, I don’t think they are seeing the whole picture,” says Jack McCabe, an economist and principal at McCabe Research & Consulting in South Florida. When the foreclosed and short sale homes start hitting the Miami and Fort Lauderdale market in the next few months, the price gains of the past several months will be wiped out, McCabe believes.

And even though the South Florida real estate market has been buoyed by investors from Brazil and Canada, those countries aren’t getting the favorable exchange rates of a year ago. The crisis is far from over.

Getting Legal Help

If you face the threat of foreclosure, we can help take the worry away and get you back on track to save your home. Call the law offices of Isaac Benmergui with your legal real estate needs at 780-800-2510 or email Isaac@benmerguilaw.com for more information or to set up an appointment today.

 

 

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