Significant Drop of Foreclosure in Cape Coral

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Last October, there have been 656 foreclosure lawsuits in Lee County, which is the lowest range in a lot more than three years, according to the statistics published by the South West Florida Real Estate Investment Association.

It was in fact a very rare hope in a rather difficult situation: The Cape Coral and Lee County foreclosure rate is normally within the top 5 metropolitan areas nationwide, with only Las Vegas consistently worse.

The October’s variety was down 31% in comparison to September’s 953. This pace hasn’t been this slow for quite some time. Back in February 2007, 555 had been filled as the wave of mortgage failures that followed the housing expansion was just obtaining under way. According to some experts, that this decline was part of a long-term downward pattern, but this isn’t the whole picture.

Possibly, foreclosures plunged due to the reason that some of the banks have been holding off on foreclosures whilst they figure out their problems including who truly owns the note and whether the attorneys read all the paperwork. However, this holding was for only one week and two banks (a major one though, in the form of Bank of America).

Needless to say, that the current lender problems alone could not have created this major drop. Charlie Green, County Clerk of Court, affirmed that whatever the trigger, the downward pattern has aided whittle away at a daunting backlog of foreclosures within the court system. From the pipeline, there are now only approximately 14,700 properties, according to Green, which is about 50% less in comparison with the end of 2008 when there were 26,000 cases.

However, Green cautioned that there is a significant “shadow inventory” of properties that the banks are selecting not to foreclose on. But, we do not really know how many far more. We need to take into consideration that the pace of the foreclosures does not occur in a vacuum. In other words, if the winter tourist season is powerful, it will certainly reduce unemployment and keep far more people financially able to keep their houses, which is a situation 100% applicable in southwest Florida, including Cape Coral.

We will have to wait until April or even June of this year in order to see the situation of the sales and the economic effect influenced on foreclosures. One of the big builders in Cape Coral said that regardless of the short-term pattern, foreclosures cannot sustain themselves at that pace which means that sooner or later they will start slowing up, which is starting already.

However, while most of the realtors find it easier to sell to prospective renters a property where the owners are living in than a foreclosure, that non distresses market has a hard time to compete with the foreclosures. In addition, the new buyers have a very difficult time to come peace with the fact that most of the time, there is a multiple offer situation on every foreclosed property, ending by an accepted offer above the asking price.

Learn more about Cape Coral realty by visiting our business website at www.floridacapecoralrealestate.com , where you can access Cape Coral real estate for sale listings.

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