Monica Hatcher attended a Foreclosure Auction in Miami Dade and reports: Investors: Few deals at foreclosure auction. Hatcher says:“The amount of foreclosed real estate owned by Florida-based banks and thrifts has nearly tripled since the fall of last year, when foreclosure rates began their upward trek -- to $94 million as of March 31, from $34 million Sept. 30, according to the most recent Federal Deposit Insurance Corp. data. (These data do not include giants like Bank of America, which have large operations here but are based elsewhere.)”
Miami Banking Analyst Ken Thomas said:
“The Florida numbers are much worse than the national average... Total real estate owned by banks and thrifts rose 37 percent in the first quarter, compared to 12 percent nationally....”
Which brings us back to my July 6th blog: "Dissecting an Inflated sale". If the lender were to unload the property I discussed for the $330,000 loan, it is still grossly overpriced. Long Beach Mortgage would have to drop the sale by $100,00 to $150,000 to make it an attractive deal. The lender would lose half their money invested in what appears to be, 2 really stupid loans.
In the Hatcher article, Stuart Gitlitz, a Miami lawyer who represents lenders in foreclosure proceedings, said:
''What is happening now is not the aberration,'' Gitlitz said. ''What happened in the last couple years was the aberration,'' and:
“During the boom years lenders could recover the full amount of bad loans at auctions from buyers, who could still turn around and sell the properties for a profit.”
1 comment:
I think the Herald article is very accurate. Blood is not running in the streets yet.
Banks who are holding assets need to sell faster. Sellers who are asking too much need to get real.
People in South Florida do not make much money. Prices went up too much.
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