As the Florida real estate and general economy are improving, with average sales prices increasing, the number of foreclosures dropping and unemployment also increasing a funny thing happened as we continue through this recovery: re-foreclosures are up. Re-foreclosures you ask? That’s right.
A re-foreclosure is when the bank for whatever reason dismissed the first foreclosure or in some cases homeowners were successful in beating the bank on the first foreclosure. Many homeowners had hoped that over time they would end up with the home for free if in fact the bank did not rebring the foreclosure or if the five-year statute of limitations has kicked in. In most cases, neither of those events indeed have occurred.
Banks are starting to re-foreclose
In fact what has occurred is that the banks slowly but surely are starting to reforeclose on these properties where homeowners originally had the first foreclosure dismissed.
You see that while the first foreclosure may have been dismissed the mortgage remained on the property and thus while the homeowner was not free to sell the property or even refinance the property (unless they did a modification with their current bank), homeowners of course were free to rent the property out or to enjoy ownership of the property for many years.
Advent of the re-foreclosure