Phone call last week with a lender foreclosing on a Miami condo…
Last week I had a follow-up conversation with a small independent banker in Colorado whose bank is going through the foreclosure process with a condo in Miami. We will be listing the property for sale with ShowcaseMiami Realty as a Miami foreclosure/REO/Bank owned property when his bank regains possession of this Miami condo.
It was an interesting conversation because so often, as Miami Short Sale Specialists, ShowcaseMiami Realty represents the interests of Sellers who are at risk of foreclosure (not their lenders).
Here was his feedback from a lender’s perspective…
1) He said that the process is very one-sided (in favor of the borrower)
2) In this situation, the Miami borrower has not made a mortgage payment in 2 years.
3) His bank has been paying their attorneys to try and foreclose on the Miami condo for over one year. As is often the case, the borrower has her own attorney working to extend the foreclosure process.
4) The banker says that a foreclosure generally costs his bank $5,000 in attorneys fees. Today, he says, the cost for a bank to foreclose is $15,000-$20,000 as a result of the delays imposed by borrowers.
5) The banker says that his bank is “losing their shorts” already on this Miami loan. The additional time, attorneys fees & deferred maintenance of this Miami condo increases the bank’s loss.
I asked the banker if borrowers were able to stave off foreclosure altogether as a result of technicalities. He said this was not an issue with his firm because they are a small, independent bank as opposed to a “processing plant with large mortgage portfolios”.
ShowcaseMiami Realty specializes in assisting homeowners to Sell their Miami home.
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