Florida lenders cutting back on foreclosures

High levels of foreclosure filings in Florida have reduced home values in that state, forcing many moving families to sell their homes for less.

But a new report indicates that there could be relief for those who are considering selling their homes and moving. During the third quarter of this year, lenders in Miami-Dade, Broward and Palm Beach counties filed an average 150 foreclosure actions per day, down 42 percent from the 259 filings per day that were averaged during the third quarter of 2009, according to real estate consultants at Condo Vultures.

From January to September, lenders averaged 179 foreclosure filings per day, down 36 percent from the 279 per day that were averaged during that same nine-month period last year. The tri-county area is on pace to register 65,000 foreclosure actions this year, which would represent the lowest annual total since 2007's 33,000 filings. Last year saw 98,000 foreclosure actions while there were 76,000 in 2008.

Peter Zalewski, a principal with Condo Vultures, attributed the drops to an increase in lenders seeking alternatives to foreclosure when handling defaulted mortgages.

Such alternatives include short sales, when a distressed homeowner sells the property for less than what is owed on the mortgage. Short sales have become popular options for relocating homebuyers who are looking for discounted homes. 

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