As high unemployment, risky loans and plunging property values continued to affect borrowers, South Florida foreclosures increased in April from the previous month, rising in both Miami-Dade and Broward counties by triple digit percentages.
In Miami-Dade, Foreclosure filings soared by 111% between March and April, according to RealtyTrac, a private foreclosure tracking firm. Between March and April, Broward foreclosures surged 124%. South Florida foreclosures were up around 90 percent in both counties, compared to April 2008.
Michael Sichenzia, president of Dynamic Consulting Enterprises, a Deerfield Beach-based loan modification company says behind the sharp monthly rise is the increased speed with which lenders are filing foreclosures.
New government loan modification guidelines announced March 4 have allowed lenders to disqualify large numbers of borrowers because they do not qualify under mathematical formulas. Several large lenders also have begun foreclosing on a backlog of cases that had been suspended as they waited for those guidelines to be announced, he said.
''The banks are making very quick decisions about who they are going to help and who they are not going to help. Over half the people who banks are trying to reach out to don't live in the houses anymore. They've walked away already. So the lenders have no option but to foreclose,'' Sichenzia said.
Between March and April in Florida, Miami-Dade and Broward were among the counties with the highest percentage increases in foreclosures, ranking fourth and third.
In Central Florida near Orlando, Osceola County had the highest increase with one of every 57 Florida homes in some stage of foreclosure. Lee County, home to the foreclosure hotbed of Cape Coral/Fort Myers, ranked second, also with one of 57 homes affected.
In Broward one of every 78 homes was in foreclosure. It was one in 86 Miami homes in Dade, RealtyTrac reported.
342,038 properties across the nation received a default or auction notice or were repossessed in April, amid rising unemployment, representing one of every 374 homes.
RealtyTrac counts initial filings, notices of foreclosure sales and homes repossessed by banks to arrive at its numbers.
NUMBER 2 THE IN NATION
With the state ranking second in the nation, after Nevada, for foreclosures, Florida's problems continue to worsen. Florida experienced a 37% increase in South Florida foreclosures between March and April and 75% increase over last year. One of every 135 homes was affected.
Both California, which ranked third for foreclosures, and Nevada unlike Florida, however, saw declines from the previous month. Florida's month-to-month increase was driven by a rise in initial foreclosure notices and auction notices because repossessions were down 7%.
Overall, there were 64,588 Florida homes mired in the foreclosure process in April.
To combat the problem, a task force convened by the Florida Supreme Court is exploring the possibility of implementing a statewide mandatory mediation program that could require banks to work one-on-one with borrowers before moving ahead on a foreclosure filing.
A pilot mediation program was launched in Miami-Dade earlier this month.
Proponents of mandatory mediation believe it could help banks and borrowers reach a settlement in the form of a loan modification or other foreclosure alternative while alleviating the backlog of foreclosure cases clogging the system.
NEW FILINGS
James Saccacio, chief executive of Irvine, Calififornia based RealtyTrac, said in a statement that the national increases reflected a rise in new filings because bank repossessions were down on a monthly and annual basis.
The rise in filings was likely because of more lenders moving ahead on a backlog of foreclosures that collected as the industry waited for legislative guidance on loan modifications, he said.
Contributed by Miami Luxury Villas
