Rise in Foreclosed Home Auctions in Florida

Another month of historic foreclosure rate was experienced by Florida in April, making it number two in the country in terms of high repossession rate. And because of this, foreclosed home auctions are also on the rise. Florida registered a 32 percent increase in April to 342,038. This translated to one per 374 households receiving default and auction notices.

Houses and condominiums are dominant properties in foreclosure auctions. However, another repossessed property trend is starting to take shape which is causing concern among industry watchers. Commercial foreclosures have been on the rise in Florida that several auctions have been scheduled for these properties.

Some of these distressed commercial properties scheduled for foreclosure auctions at the Volusia County Courthouse are a skating rink in Deltona, an office building in Daytona Beach and a convenience store in DeLand.

Meanwhile, real estate officials in Flagler and Volusia believed that the recent spike in commercial foreclosures in their areas would not have a significant impact. Prudential CRES senior commercial real property agent Gary Clark is optimistic that commercial foreclosures in Florida will not be as bad as in the rest of the country.

However, he pointed out that newly constructed commercial strip centers will be first to feel the effect of foreclosure.

Cornelia Downing-Manfire of Prudential CRES reiterated Clark’s statement saying that Flagler County’s commercial foreclosures are absorbed quickly that it barely made a dent on the area’s real estate market.

On the other hand, John Wannamaker of Coldwell Commercial Al Group predicted that commercial properties are better off than residential properties in the current economy. He explained that this is because banks have stringent rules when it comes to commercial loans.

Data from RealtyTrac showed that about 1,522 homeowners in Volusia and Flagler counties received notices of default, auction and repossession in April. The figures represented an increase of nearly half of the total 1,018 default notices filed in the same month last year.

Default and sale notices in Volusia County posted a 65 percent increase from 774 in the same month the previous year. This showed a notice of default for one home in every 193, placing the county in the 22nd spot from out of 67 areas in Florida.

On the other hand, notices in Flagler County dropped by 8 percent to 242 from 244. One in every 200 homes received notices which placed Flagler on the 24th spot among areas in Florida with an increase in the number of properties sold in foreclosed home auctions.

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• Foreclosed Properties for Sale in Orange, California to Rise
• Repossessed Homes for Sale in Palm Beach Still Surging