In the most recent Foreclosure Market Report completed in April 2015, Florida leads the nation in the most foreclosures. In April, the total number of REO listings were 21,182. Florida ranks nearly 2.5 times higher than the national average of homeowners filing foreclosure (or one in every 425 houses).
Foreclosures are not always such a bargain deal. Foreclosure prices have hit an 18 month high. Compared to market value, the price of a sold REO (real estate-owned property) in Florida ranged from 79-91 percent of actual market value depending on location.
Even with a 6 percent year-over-year decrease in foreclosure filings, we see a spike in foreclosures. This increase is due to completion, not new foreclosure filings. Completions increased year-to-year by 41.82 percent. On the other hand, foreclosure starts declined year-to-year at 28.35 percent.
Many investors love foreclosure deals, which carry a stigma of getting a bargain deal. In Florida, we need to be aware this may not be the case. You can still locate a decent deal, but if you compare the market value to the selling prices the property might not have enough equity. For the average homeowner, 79-91 percent of market value might be a great deal, but not always for an investor.
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