As I expected, after the expiration of the tax credit, and with the failures in loan modifications and other government programs, banks would continue to take back houses. As mentioned below, the online auctions makes it easier, as howeowners generally don't attend like they sometimes do in court, and contest the sales. The process works quite well, I have been online at all three counties, they use the same system.
Whatever small price bumps we saw, it will probably go down again as these houses come to market. Short sales is still a viable, strong alternative, and the banks have ramped up systems and training, it is getting better in the loss mitigation departments.
Also see the following article:
40 percent of Florida homes sales are foreclosures
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Lenders are repossessing homes at a faster clip in 2010 and are on pace to take back nearly 50,000 properties in South Florida this year, according to a report from CondoVultures.com.
Banks repossessed an average of 4,000 South Florida properties a month in the first half of 2010, an 83 percent increase from a year ago. Miami-Dade County had a 125 percent increase, while repossessions rose by 112 percent in Palm Beach County and 42 percent in Broward.
If repossessions approach 50,000 for the year, it would easily surpass the 30,400 homes that lenders took back in 2009.
Peter Zalewski, a principal with the Bal Harbour-based consulting firm, said in a statement the number of bank repossessions in 2010 is higher than at any time in at least 20 years.
He points out that the bank-owned homes will be coming back on the market at a discount. That almost certainly will drive prices down.
Foreclosure auctions were moved online this year in South Florida. Zalewski said a reason for the increase in repossessions is that the Internet auctions allow courts to clear the backlog of cases more quickly.
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