According to a report from CondoVultures, foreclosure actions in South Florida have plummeted by 51 percent year-over-year for the second quarter of 2011. Peter Zalewski, CondoVultures principal, says that “lenders appear to be riding the brake when it comes to foreclosure actions” in the region[1]. He added, however, that this might change once “administrative irregularities tied to foreclosure process in Florida can be resolved.”
Further complicating the matter could be the pending potential resolution of the state attorneys general probe into foreclosure practices, which, once resolved, could open the floodgates for lenders to start foreclosing in high volumes. A resolution would hopefully provide clarity for lenders, borrowers and judges on proper foreclosure procedure and would enable the process to move smoothly through the system, even if many of the foreclosures were still controversial[2]. Five of the country’s largest banks – Bank of America, Ally Financial, Citigroup, Wells Fargo and JPMorgan Chase – face billions in fines and penalties via the settlement.
Do you think that the decline in foreclosures in South Florida is a sign of improvement or just a gathering storm?
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[1] http://www.dsnews.com/articles/south-floridas-new-foreclosure-filings-fall-51-in-second-quarter-2011-07-08
[2] http://www.theepochtimes.com/n2/business/florida-real-estate-its-about-to-get-messy-58925.html
