The Real Deal Miami

Default deals decline

Competition to buy troubled assets hotter than ever, erasing discounts
By Christopher Cameron | April 30, 2014 11:30AM

058-059 SFMR-Distressed Market-se FINAL.inddFrom the South Florida Market Report: The dark days of the recession, when as many as 31,500 homeowners were defaulting on their mortgages each month, are behind South Florida. Miami’s luxury market is booming thanks to cosmopolitan millionaires, and prices throughout the region are steadily rising. But the area’s housing market continues to boast a less savory superlative: the highest foreclosure rate in the nation.

In January, South Florida once again led the nation in mortgage defaults, with 10,302 foreclosure filings, according to RealtyTrac, an Irvine, Calif.-based data firm. While those foreclosures represent a massive 50 percent spike from December, it was also a nearly 5 percent year-over-year decline. And while the supply of distressed assets slowly dwindles as the economy improves, the steep discounts that many investors enjoyed during the recession have largely vanished. [more]