Residential Shortsales Spike 49% In South Florida In 2010

 MIAMI, FL--The number of residential shortsale transactions in the tricounty South Florida region jumped by 49 percent on a year-over-year basis in 2010, according to a new report from CondoVultures.com.

Buyers purchased nearly 16,800 residential properties in Miami-Dade, Broward, and Palm Beach counties in 2010 at prices below - or short of - the outstanding loan amount owed by sellers.

In 2009, buyers purchased nearly 11,300 properties short of the financing amount due, according to an analysis by the licensed Florida sell-side brokerage CVR Realty™.

"All indications are that shortsales will increasingly be the primary focus of buyers searching for properties in the South Florida market," said Hernan Osorio (top right photo), the director of sales for CVR Realty™.

"With the federal government's loan modification program having a minimal effect and the economy failing to create enough jobs to jump start the South Florida housing market, more homeowners are being faced with the prospect of losing their residences, either through foreclosure or shortsales.

“ Luckily for sellers who do want out but are mindful of their credit, several lenders are beginning to view shortsales as a viable alternative to the foreclosure process."

Lenders sold 19,800 residences in South Florida in 2010, down six percent from 2009 when 21,050 bank-owned properties were transacted, according to the report based on Florida Association of Realtors data.

Buyers are still anxious to acquire bank-owned properties but lenders have grown more hesitant to unload these repossessions given the economics involved.

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