In our previous post we wrote about the decrease or holding pattern certain south Florida counties were experiencing concerning bankruptcy filings. In the counties where the decreases were not as great, or static, such as Palm Beach and Miami-Dade, foreclosures were believed to be a big reason for the trend. In this post, we provide more information on the topic.
As we wrote in the previous post, Palm Beach County had a reduction in the number of bankruptcies filed as compared to the year before, of 6 percent. At the same time, in the month of February, the number of foreclosures increased by 59 percent as compared to that month in 2011. Similarly, Miami-Dade also saw an increase in the number of foreclosures from the year before. They were up by 39 percent. The number of bankruptcies in the county was pretty much the same as the year before.
While the economy does appear to be improving, the increase in the number of foreclosures occurring in South Florida is not all that surprising. This is because they had dropped significantly for a time due to the robo signing scandal that resulted in all foreclosures being halted while the matter was being sorted out. During that period of time the number of homes facing being foreclosed upon continued to grow, while none were being cleared out of the pipeline.
Homeowners facing the prospect of losing their home usually want to do whatever they can to be able to remain living in it. For that reason, many decide to stop the foreclosure by filing for bankruptcy. In many cases, by working with a bankruptcy lawyer it may be possible to keep one’s home while at the same time resolving the financial issues that led to the foreclosure in the first place.
Source: South Florida Business Journal, “Foreclosure activity skyrocketed in February in Miami-Dade, Palm Beach,” Oscar Pedro Musibay, March 14, 2013