Archive for the 'Florida Articles' Category

Prices of properties sold at bank foreclosure auctions and tax deed auctions in some areas of Florida are reportedly inflated. According to local reports, there are some investors who artificially inflate the sales prices of residential real estate sold in these auctions. As of now, officials are unsure what the purpose is behind the alleged inflated prices.

State reports have looked in on homes for auction in Orlando, Florida and in other key areas of the state, but have so far only found Orange County investors to be practicing this so-called price inflation tactic. According to local officials, artificially inflating property prices sold at auctions results in higher investor profits and also misleads lenders and homebuyers. However, they did admit that they are not sure what the benefit would be for investors involved.

Officials reported that those who inflate the prices of properties offered at foreclosure Florida home auctions pay higher documentary stamp tax rates on these properties to boost the prices of houses recorded at the Property Appraiser's Office. Some have speculated that the purpose is to give lenders and buyers an impression that they paid only a little more to purchase these properties. The reports emerged after sales records in two different housing agencies showed different sales prices in 16 of the most recent sales closings in the county.

Housing market experts explained that inflating the sales prices of properties offered at bank and tax deed auctions is possible in Orange County because the Comptroller's Office and County Clerk of Courts have separate powers. This is also done by paying more taxes which would then inflate the selling rates since taxes are used in calculating residential prices.

The wide ranging effect is that sales prices of properties at foreclosure auctions are showing higher levels, which could eventually influence the overall asking prices of real property agents who usually rely on records of property sales and values to come up with comparable rates. A number of local officials have stated that the solution to this issue will probably require a regulation or statute change. Meanwhile, local housing agencies involved in recording the sales have stated that they are doing everything they can to follow the law.

The alleged inflation of housing prices offered at bank auctions and tax deed auctions has yet to affect other counties of Florida. However, officials have stated that further scrutiny is needed to determine the real reason behind the inflated rates and whether there are other markets showing such inaccuracy.

Underwater mortgages, or loans worth more than the value of homes, have been identified as risk factors in increasing an area's bank foreclosure and HUD repo homes numbers. In Tampa, Florida, the fourth quarter of 2010 saw underwater loans accounting for almost half of all mortgages in the area.

The number of homes that are in danger of falling under Tampa foreclosed auctions has remained high and is expected to increase further for the rest of the year as underwater loans continue to increase in the region. Data from CoreLogic showed that 328,449 mortgage loans in the area are considered underwater, representing 49.1% of total home loans in Tampa during October-December 2010. The figure is around the same percentage posted during the July-September 2010 quarter.

Meanwhile, more residential properties are in danger of ending up in home auctions in Florida as more than 28,500 mortgages in Tampa are hovering near the negative equity or underwater level. These high-risk loans account for around 4.3% of the total number of mortgages in the metro area. The number of underwater loans in the region is double that of the nationwide figure, with around 23% of mortgages in the U.S. categorized as underwater in the fourth quarter of the previous year.

This means that more than 11 million U.S. households are in danger of losing their properties to bank foreclosures, HUD repo homes and other types of foreclosures. The nationwide figure for the fourth quarter of last year was up from the 2010 third quarter when 22.5% of total housing loans were considered underwater. The third quarter figure represents 10.8 million of the nation's households.

For the whole state of Florida, around 46% of mortgages were considered underwater in the 2010 fourth quarter. According to housing market analysts, a negative equity often prevents a homeowner from selling his property, particularly with tough competition from cheap public foreclosure home auctions for sale. They also explain that underwater loans usually increase in number when housing prices decline. During December of 2010, 11 of the 20 biggest metro areas in the U.S. posted their lowest housing price levels since the foreclosure crisis started around five years ago.

Analysts further added that mortgaged properties with negative equity are in great danger of becoming foreclosed or ending up as bank or HUD repo homes since owners are often not allowed to refinance. More often that not, their only option is to continue paying their loans and hope that their houses regain their values, analysts said.

Regulators in Florida have reported that complaints against foreclosure rescue businesses or those firms specializing in helping borrowers stop foreclosure are still coming in despite new laws designed to weed out illegal activities by such companies. According to authorities, rescue firms and even some law firms specializing in mortgage modifications are charging borrowers with upfront fees.

As the number of foreclosure Hollywood home auctions and foreclosure sales in various markets of Florida increased, the number of rescue companies also jumped considerably in the area. This also led to more cases of fraud wherein these businesses reportedly charged homeowners for services that were not even provided. To stop such practices, legislators in Florida enacted laws that prevent rescue firms from charging upfront fees.

However, recent reports revealed that complaints from homeowners facing risks of losing their homes to Florida foreclosure auctions have increased. Currently, the state's Attorney General's Office has around 2,600 complaints, with 78 of these cases being actively investigated. According to reports, the American Residential Law Group is one of the firms involved in a case with 48 complaints filed against the firm.

Homeowners complained that the firm charged them as high as $3,000 for services that will help stop foreclosure on their properties, including negotiating with lenders. However, homeowners reported that they received hardly any assistance after paying the fees. So far, the Attorney General's Office has five lawsuits ongoing in South Florida and another four in Orlando against firms that offer mortgage modification services.

Meanwhile, the Florida Bar has also addressed the issue, reporting more than 160 cases that involve lawyers. In 2010, the bar was able to close more than 250 loan modification cases and issued sanctions on seven lawyers in 84 cases related to services for preventing properties from getting sold at foreclosed homes auctions. Consumer advocates have weighed in on the issue, stating that the robo-signing controversy has overshadowed the rescue company issue in the past few months.

They added that these rescue firms are still operating in large parts of the state, with most offering services to stop foreclosure without any intention of providing them. They did admit that although cases are still being reported, the frequency has somewhat declined, mainly because of new laws put in place.

After almost three months of suspended sales of Fannie Mae foreclosed homes, instruction to resume selling has been given by the government-sponsored mortgage giant in Florida. Selling of foreclosures has been put on hold in September following controversy surrounding lenders' alleged use of questionable documents in processing foreclosed properties.

Fort Lauderdale foreclosure auctions are getting speedier as Broward County, where Fort Lauderdale is located, has been conducting its public auctions online since March.

Buyers are still getting huge discounts for Orlando home auctions for sale despite the slowdown in foreclosure filings.

Single-family house and condo sales spiked in the first quarter as online Miami home auctions for sale put further downward pressure on prices.

Five foreclosed homes auctions to be held in August in 5 cities across Florida will sell almost 200 bank owned foreclosed houses.

More properties are getting added to foreclosed home auctions in the Orlando metro area because of growing job losses in the city, based on real estate data in Florida.

First American CoreLogic released its market data showing an 8.1 percent increase in house repossession rates in Orlando-Kissimmee area in Florida in March of this year. Last March’s foreclosure rates were more than twice compared to the same month figures the previous year.