The number of foreclosure actions that were filed in South Florida dropped by almost 50% in the second quarter of 2010.
Condo Vultures reports that 14,500 foreclosure actions were filed against borrowers in the populous counties of Miami-Dade, Broward and Palm Beach between April and June 2010, a drop of nearly 50% from the 28,400 foreclosure actions filed in the same quarter last year.
The drop in foreclosure filings is the result of a few factors, including banks and borrowers' choosing short sales over foreclosure, after lenders found that short sales bring in around the same amount as bank-repossessed houses do.
Another reason is the increased costs and length of the foreclosure process. In 2007, it typically took about six months at a cost of around S40,000. By 2009, foreclosures took an average of 18 months to be processed, at a cost of $100,000. One cause of the slowing down of the process is the implementation of new government directives that require lenders and borrowers to work together to modify mortgages to increase the chances of the primary users' keeping their home.