Less available foreclosures doesn't mean we're done yet!

Have you noticed there are less foreclosures available for sale in your Highlands County neighborhood than last year? Are you having a hard time finding a good REO property to purchase because there's isn't as much to pick from anymore? Is this the end of the foreclosure crisis in Highlands County? Short answer: NO!

Yes, there are far less REO properties available for sale these days and one might speculate that this means there is a big bold bright light at the end of the tunnel, meaning our market is well on its way to recovery and the bargain prices are going to be a thing of the past.

Let's stick with the facts and examine what we know:

- In January 2011, the Fort Myers News Press reported that banks have recently withdrawn hundreds of foreclosures in Florida. Lee County Clerk of Court Charlie Green (not Sheen) said "We think they're going to come back and re-file". So these are pending foreclosure cases that aren't going to be listed soon. Read the entire article here. I checked the court files for Highlands County and it appears there have been well over 100 Orders of Dismissal on foreclosure cases issued by the Circuit Judge since late fall 2010. Nobody knows why the cases were dismissed and how long it will take these lenders to re-file, IF they intend to do so. Meanwhile, none of these foreclosures are offered for sale.

- Bank of America and/or Countrywide have filed for foreclosue on a total of 2 homeowners in Highlands County since January 2011 while there were hundreds of BoA/CW filings annually in previous years. Does this mean nobody has defaulted on their loan since January? Probably not! Thinking back to the robo signing disaster last year, it is very likely that banks are simply holding back properties...........they don't want to get caught foreclosing without the legal right to do so and these waters are still pretty murky!

None of these cases are going away, they won't disappear, they don't get magically resolved. They are simply lurking in the shadows, waiting to have their day in court. Most likely, many will end up being Real Estate Owned (by banks) and then listed to be sold. Nobody knows how long that will take - but I'm almost certain it won't be next week!