Banks find their second wind and make the homeowner play second fiddle
South Florida has recently been experiencing what can very well be considered a real estate renaissance; a second awakening of the real estate market after the horror that was called the foreclosure crisis. Unbelievable.
The Sun Sentinel reported that “[u]nderwater mortgages continued to decline across South Florida at the end of 2015.” According to Zillow, at the beginning of 2015, 13.7 percent of homeowners in Palm Beach, Broward, and Miami-Dade counties still owed more than their homes are worth, which was down from 19 percent in the same period of 2014. This increase in equity can be attributed to the rising home prices in South Florida.
Good for the homeowner or good for the banks?
While this is a step in the right direction, it’s important to remember that what is good for the goose is also, unfortunately, good for the gander. In other words, while this may be good for the homeowners it’s also very good for the banks. While homeowners turn around for just one second, the banks are filing both a first foreclosure on the second mortgage and, after already being dismissed once, a second suit on the first mortgage!
The recent increase in real estate prices in South Florida has provided an incentive for banks to foreclose on properties they had seemingly given up on. The increase in equity has enticed the banks to file suit on second mortgages that they previously thought were worthless.
Still, the Band Marches On
It appears the banks have somehow found their second wind, but homeowners must remember that they are nevertheless able to stop the foreclosure process by pursuing any and all options available. As always, the best advice is to stay strong and defend your home (and your equity!).
From the trenches,