Foreclosure Freeze Leads To 41% Drop In South Florida Filings

MIAMI, FL--Lenders abruptly pulled back and filed less than 60,000 foreclosure actions in the tricounty South Florida region in 2010, a year after initiating nearly 100,000 notices of default in 2009, according to a new report from CondoVultures.com.

Administrative irregularities in the foreclosure process that surfaced in late September 2010 created a "foreclosure freeze" that forced lenders to file 61 percent fewer notices of default in Miami-Dade, Broward, and Palm Beach counties between October and December 2010 compared to the same three-month period in 2009, according to the report based on the Condo Vultures® Foreclosure Database™.

"The 'Robo-Signing' controversy tied to the administrative irregularities in the foreclosure process has basically forced lenders to downshift their efforts from fourth gear to first gear until the situation can be resolved," said Peter Zalewski (middle right photo), a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC.

"Lenders filed 14,000 fewer foreclosure actions in the fourth quarter of 2010 compared to a year earlier. As a result, 2010 ranks behind 2009 and 2008 in terms of the total foreclosure filing activity. The unknown is whether foreclosure filings will spike when - and if - the foreclosure freeze is eventually resolved."  

Foreclosures are a topic scheduled to be discussed at the upcoming Condo Vultures® 3rd annual "State of the South Florida Condo Market" event on Jan. 25 at the Miami City Club at the top of the Wachovia Financial Center in Downtown Miami.

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com