The inventory of homes has gone down and the list of foreclosures is also decreasing. However, there are still a lot of vacant homes in southwest Florida neighborhoods that are not up for sale yet. Some of the banks are holding onto these properties hoping to get more money since the prices are slowly increasing.
Bank of America has been taking longer this year to sell its foreclosure properties than it took last year. Based on Realty Trac’s nationwide data for September 2012, several of the banks were taking at least 20 percent longer than they took in 2011. Smaller banks seem to be quicker with selling foreclosures probably because they aren’t faced with the same volume of properties.
The problem is that the longer a property sits during the foreclosure process, the greater the chances of it becoming in disrepair. Fees can also add up for things such as association fees, overdue property taxes or city or county code enforcement fines. The banks usually will send a property preservation company to mow the lawn and secure the property. But then it sits idle. Banks are not typically willing to make repairs to the home because there are investors and flippers ready to buy the homes and fix them up for rentals or for resale.
The bottom line is that foreclosures are going to continue to be hitting the market for the next six to 12 months. Neighbors who live near these homes would like to see some action taken sooner than later. It hurts residents who are trying to rebuild some equity in their homes. Buyers looking to purchase a home in mid-Florida can search for properties on the My Florida Homes web site at http://myfloridahomesmls.com/.