South Florida foreclosures dropped considerably in the first three months of 2011, the result of a lingering self-imposed slowdown by banks.
By TOLUSE OLORUNNIPA tolorunnipa@MiamiHerald.com
Six months after the nation’s largest banks discovered errors in their foreclosure practices, the home-repossession process continues to lag.
The number of South Florida foreclosure filings in March dropped 68.6 percent compared to the same month last year, according to data released Wednesday by foreclosure research firm RealtyTrac.
In Miami-Dade County, there were 2,749 foreclosures in March, down 70.2 percent from March 2010, when there were 9,224 filings. In Broward County, there were 2,199 foreclosures in March, down 65.3 percent from 6,341 in March 2010. Rather than a sign of an improving market, the drop in foreclosures stems from banks’ decisions to temporarily slow or stop taking back homes, as they face accusations of “robo-signing” and forging documents.
“[The market] is still facing the dual threat of a looming shadow inventory of distressed properties and the probability that foreclosure activity will begin to increase again as lenders and servicers gradually work their way through the backlog of thousands of foreclosures that have been delayed due to improperly processed paperwork,” said James J. Saccacio, chief executive officer of RealtyTrac, in a statement.
Foreclosures have dropped significantly across Florida, which is one of the largest states that require lenders to go to court in order to repossess a delinquent home.
Many housing analysts predicted that the lull in foreclosures will end this year, but so far, that hasn’t happened.
In the first three months of 2011, there were 18,867 foreclosure filings in South Florida, down 63.9 percent from the same quarter last year.
Since the beginning of the year, the pace of foreclosures has continued to suffer setbacks. Foreclosure-processing firms have begun battling lenders in court over unpaid fees, in some cases holding on to documents necessary for closing out pending cases. The Law Offices of David J. Stern, once the state’s largest foreclosure-processing firm, has decided to end its home-repossession business, abandoning 100,000 cases in court. Because lenders have struggled to find substitute counsel, many of those cases will be dismissed, further delaying the process.
In a move that could preface a return to normalcy, the Law Offices of Marshall C. Watson reached a $2 million settlement with the Florida Attorney General’s Office last month, ending a six-month probe into allegations of shoddy foreclosure work. Four other firms remain under investigation.
The number of South Florida foreclosure filings in March dropped 68.6 percent compared to the same month last year, according to data released Wednesday by foreclosure research firm RealtyTrac.
In Miami-Dade County, there were 2,749 foreclosures in March, down 70.2 percent from March 2010, when there were 9,224 filings. In Broward County, there were 2,199 foreclosures in March, down 65.3 percent from 6,341 in March 2010. Rather than a sign of an improving market, the drop in foreclosures stems from banks’ decisions to temporarily slow or stop taking back homes, as they face accusations of “robo-signing” and forging documents.
“[The market] is still facing the dual threat of a looming shadow inventory of distressed properties and the probability that foreclosure activity will begin to increase again as lenders and servicers gradually work their way through the backlog of thousands of foreclosures that have been delayed due to improperly processed paperwork,” said James J. Saccacio, chief executive officer of RealtyTrac, in a statement.
Foreclosures have dropped significantly across Florida, which is one of the largest states that require lenders to go to court in order to repossess a delinquent home.
Many housing analysts predicted that the lull in foreclosures will end this year, but so far, that hasn’t happened.
In the first three months of 2011, there were 18,867 foreclosure filings in South Florida, down 63.9 percent from the same quarter last year.
Since the beginning of the year, the pace of foreclosures has continued to suffer setbacks. Foreclosure-processing firms have begun battling lenders in court over unpaid fees, in some cases holding on to documents necessary for closing out pending cases. The Law Offices of David J. Stern, once the state’s largest foreclosure-processing firm, has decided to end its home-repossession business, abandoning 100,000 cases in court. Because lenders have struggled to find substitute counsel, many of those cases will be dismissed, further delaying the process.
In a move that could preface a return to normalcy, the Law Offices of Marshall C. Watson reached a $2 million settlement with the Florida Attorney General’s Office last month, ending a six-month probe into allegations of shoddy foreclosure work. Four other firms remain under investigation.
No comments:
Post a Comment