As South Florida lenders turn to short sales, foreclosures decline in February

Foreclosures in South Florida dropped 19 percent in February over the year-ago period, according to a new report from Condo Vultures, and an upward trend in short sales may be the reason. “Lenders are increasingly coming to the conclusion that short sales…are a more financially advantageous method of unloading troubled properties than actually foreclosing on a borrower,” said Peter Zalewski, a principal with the Bal Harbour-based consultancy. The 6,680 foreclosure filings last month — 239 per day — were a decline from the 8,200 filings in February 2009, but the number was still up from the 5,500 filings recorded in February 2008 and from the 5,800 recorded in January 2010. Based on the first two months of the year, the tri-county region is on pace for 77,000 actions this year, Condo Vultures said. Miami-Dade County saw the largest foreclosure declines: 30 percent during the month, to 1,670 foreclosure actions. Palm Beach County foreclosure actions dropped 24 percent to 1,822 actions, while Broward County foreclosure actions fell only 7 percent to 3,188. [Condo Vultures]