Miami Foreclosures Still Booming

The Miami foreclosures market continues to boom well into 2008, as the most recent statistics show that the Miami area has the 14th highest rate of foreclosure out of all metropolitan areas nationwide. The current rate in the city tops out at roughly 1 in every 90 homes currently undergoing some stage of the foreclosure process, leading to a huge surplus of Miami cheap homes available through foreclosure auction.

Miami, Florida

Miami foreclosure homes have increased dramatically in recent years, largely the result of the sub prime mortgage market implosion, but also due to over investment and falling property values. During the real estate boom, Miami’s real estate market was one of the hottest in the country. Developers were building new homes at a staggering rate, and with interest rates so low and everyone looking to buy, investors bought up homes as fast as they were being built. But just as quickly as it grew, the market fell drastically, and so did property values. Investors who paid to dollar for extremely inflated home prices during the boom suddenly found themselves having lost lots of money, and worst of all they were unable to sell off their properties for enough to cover the mortgage, and thus the only option was foreclosure.

This has become an all too common story for Miami, and as 2008 goes on we continue to see growing foreclosures as a result of that situation. The Miami area is currently estimated to have 11,700 foreclosure properties, including Miami bank owned homes, on the market, and records show they are going at staggeringly low prices at foreclosure auction due to the flooded market. This has led many investors to seek out Miami foreclosure listings for investment opportunities, as buying Miami foreclosures may be the best way to save in the area.

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