Tag Archives: Miami condo foreclosures

5 Insights on Miami foreclosure from the Lender’s Perspective…

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.

(Highest price in the Shortest period of time)

Jason Smith

Broker

Miami Realtor

Miami Listing Agent

ShowcaseMiami Realty

www.ShowcaseMiami.com

786-326-8115

 

 

Miami condo stats (REO vs Short Sale vs Regular Sales)

Follow up to my recent blog about Miami Inventory

 Today’s data below focuses on Miami Condos only (the results are surprising!)

Dade County MLS Statistics as of January, 2012 (Miami Condos)…

Available Miami Condo Listings…

Total Available Listings…4,886 Listings

Non-Distressed…4,105 Listings…84%

Foreclosure (aka “REO”)… 154 Listings…3%

Short Sale (aka “pre-foreclosure”)… 627 Listings…13%

 

Sold Miami Condos (Last Three Months)

Total Closed Sales (last three months)…191 Closed Sales

Non-Distressed…127 closed sales…67%

Foreclosure (aka “REO”)…54 closed sales…28%

Short Sale (aka “pre-foreclosure”)…10 closed sales…5%

What do these #’s tell us about the Miami market?

Miami Condo Short Sale Narrative:

These #’s are simply incredible!  They just go to show how extraordinary the condo buying spree in Miami has been from international buyers over the past 12 months.  One year ago, in January 2011, Miami short sales were over 30% of the inventory (as they remain today with Miami Single Family Inventory).  Today, only 13% of the available Miami condos in the MLS are short sales.

Miami Condo Foreclosure Narrative:

One year ago (January 2011), Miami foreclosure inventory on MLS was over 10% of the available supply.  The #’s above show current foreclosure/bank owned/REO inventory at only 3%!

 

My Outlook for the next 6 months:

We are heading into the peak condo-buying season in Miami (December to April).  This points to further condo buying from international buyers and a further lessening of supply over the coming months.  One possible factor that might add to supply is the “shadow inventory” of bank owned/foreclosure condos that have not yet been introduced to the market.  However, because Miami condo-buying activity remains so robust, that supply will be absorbed by international investors.

If you are interested in Selling your Miami property, I’d be happy to meet with you to discuss the best strategy for your particular property.

 

ShowcaseMiami Realty specializes in assisting homeowners to Sell their Miami home.

(Highest price in the Shortest period of time)

To discuss a strategy for your home, call…

Jason Smith

Broker (Seller Specialist)

ShowcaseMiami Realty

www.ShowcaseMiami.com

786-326-8115