According to the South Florida Business Journal, foreclosure filings were up across South Florida in July. Additionally, more homes have flooded the market in the past 10 weeks sparking many questions about the effect of foreclosures on the marketplace.
Florida had the third-highest foreclosure rate in the country with one in every 171 housing units receiving a foreclosure filing in July. Moreover, there has been a 4.6% increase of homes for sale in South Florida since May 31st, and that represents the first two month rise since the housing bubble burst.
It is therefore important to consult, and hire, an experienced foreclosure defense attorney to defend your rights. An experienced foreclosure defense attorney will be able to assess and evaluate what defenses you may have during the foreclosure process, and aggressively advocate your positions in the foreclosure. And when given an opportunity to defend these cases properly, we have actually not only won those cases, but we have secured attorney fees in our favor.
In Miami-Dade County, 1 in every 138 homes fell into foreclosure in July. Foreclosures in Palm Beach County shot up 77% in July, to 3,759 from 2,121 the month before, and were up 41.7% from a year earlier. In Broward County, 1 in every 125 homes was in foreclosure in July. In Broward, there were 6,471 foreclosure filings in July, and that represented a 4.76% increase from June.
These numbers are particularly troubling to the real estate recovery. For the past two years, the housing supply had been plummeting. Indeed, there was a string of 24 straight months where the housing supply declined. However, and in addition to the increase in foreclosure filings in July, the past 10 weeks have also seen an increase in the amount of supply in the market, i.e. an increase in the number of homes for sale. This is a troubling sign as it illustrates that there is still considerable uncertainty in the real estate market.
This new trend could mean further declines in home values and asking prices. For buyers, more inventory means more homes to choose from, and more leverage when negotiating prices. For sellers, this means more price reductions and likely more time for the property to stay on the market before it is sold.
One possible explanation for the increased inventory is that banks are slowly starting to dump more distressed properties back on the market. These distressed properties will no doubt likely drive prices down, and also increase inventory. The result could be further price reductions in a market still searching for a bottom.
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We have been successful in defending many foreclosure cases when given an opportunity to develop a plan to properly defend the foreclosure.
If you are on the brink of foreclosure, need a real estate attorney, or just need to assess your legal rights, please contact our office today.