Mortgage Defaults and Evictions Boost the Volume of Miami Bank Foreclosures

By: Joseph Smith

Florida is one of the states with the highest volume of foreclosures in the US. Many homebuyers are flocking to South Florida to eye foreclosed homes that are very ideal as vacation houses and as investments for lease. Miami bank foreclosures are among the most in demand, not just in the state, but also in the entire country. Market observers note that the inventory of foreclosed homes in Miami keeps on piling up. This is good news to opportunistic buyers.

There are two types of financial transactions that are blamed for the high number of Miami bank foreclosures. First, mortgage defaults are the main cause for foreclosures. When homeowners default on their mortgage payments, they are stripped of their ownership rights to their homes, which were used as prime collaterals or securities for loans. The mortgage lenders will take the ownership and will have options to sell the homes to collect the amount of money homeowners owe them.

The second usual foreclosure activity is eviction. When homeowners fail to shoulder and pay for loan dues, the mortgage lenders then assume the right to displace the family. Because the ownership of the homes are transferred to banks, homeowners have no choice but be forced out of their dwellings, unless they repay their mortgage with accumulated interest and fees. In Miami, there were about 4,800 evictions from January to April of 2008, up 1,150 from the same four months in 2007.

In the end, prospective homebuyers take the advantages to rising volume of Miami bank foreclosures. The market is flooding with such homes and prices tend to fall further. It is the best and most opportunistic time to acquire such foreclosed homes.

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Joseph Smith has been educating buyers on the finer points of Miami Bank Foreclosures purchase at for over four years. Click here to visit and read more advice on finding Bank Foreclosures.

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