Market for Single Family Repossessed Homes in South Florida Improved

Some improvements were exhibited by the single family repossessed homes market in South Florida during the 2010 second quarter. According to real estate firm Zillow.com, 44% of single family dwellings in the region have mortgages that are worth more than the properties' values. This is a slight improvement from the 47% recorded a year ago.

Around 42% of single family bank owned homes for sale were sold for a loss during the quarter, a figure slightly lower when compared with June of 2009. Meanwhile, 46% of condominiums were unloaded by sellers at a loss during the quarter, a number almost similar to the figure recorded a year ago.

According to real estate market analysts, the second quarter saw fewer properties in the area falling under foreclosure auctions when compared with the same 2009 period. However, foreclosure statistics remain high, signaling that any potential recovery will be a slow one. Analysts also stated that South Florida's housing market is mainly influenced by huge numbers of distressed property sales and high rates of unemployment.

Real estate experts have also stated that underwater mortgages, or those loans worth more than the actual value of the home, weighed down the country's housing market. High numbers of repossessed homes also contributed in dragging the market down, along with the psyche of most homeowners. Some real estate analysts stated that the poor condition of the nation's housing markets discouraged realtors from taking risks and from spending money on the market.

They further added that foreclosures in Florida and underwater mortgages will force most homeowners to stay in their houses and pay their mortgages despite the loan being more expensive than the actual price of the house. This is because it would be almost impossible to sell the property for a gain, so they will just stay and pay the mortgage as long as they have jobs.

Homeowners with underwater loans also do not have a lot of options since they will not be able to refinance their mortgages. Some might opt for a short sale, while others will let the property be foreclosed or become one of the area's repossessed homes. The problem is expected to continue for the rest of 2010.

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