Many media headlines have recently declared the foreclosure run officially over, and some giant private equity funds have reportedly already moved onto new homes to “keep up volume.” But for those who know where – and how – to look, there is a whole buffet of distressed REOs ripe for the picking.
According to some sources, the South Florida real estate market has bounced back, essentially becoming the epicenter of the new boom, with values and demand headed back to 2006 territory, especially along the waterfront. This gives the impression that it’s slim pickings for distressed property investors and those looking for non-performing SFR loans in Florida, if there are still any bargains to be had.
However, this only tells half the story, and leaves out some very important facts. First off, 2006 is really an irrelevant benchmark for measuring recovery considering that the South Florida market was one of the first to crumble and had been falling apart at least a year earlier than that. Recent data also reveals that while property prices may be heading up, Miami in particular could equally be pegged as the heart of the foreclosure crisis today.
One data compiler recently revealed that Florida is home to around 30% of the nation’s vacant foreclosure properties, and has three times more of them than runner-up Illinois. According to Bloomberg, while both distressed and non-distressed homes in Miami have seen around a 20% increase in average sales price since last year, 1 in 236 units received a foreclosure notice in June, quadruple the country’s average. This is on top of 1 in every 143 in Miami during May. RealtyTrac shows a shocking 78 to 112% increase in foreclosure activity including auctions and repossessions. Additionally CoreLogic says that 40% of South Florida homes are still underwater. And other resources show that area homes are still selling for 30 to 50% under previous values.
In other words, while local home prices are rising briskly and a plethora of new developments promise to catapult them further, there are big discounts and profits to be found from buying REOs and non-performing SFR loans in Florida.
Of course there are also rumors of too much competition. So how can you find these opportunities among shadow inventory pools and beat other investors to the punch to get hands on the most attractive REOs?
Obviously what you need is a list of Florida banks with late and non-performing residential loans and REO in order to streamline and save many hours of research, and more importantly so you can hone in and find out exactly which banks are actively selling.
Luckily you’ve come to the right place, where you’ll not only find a complete list of these institutions, but direct contacts for those that have the power to cut the deals.