The Daily Soak - September 6

1 in 7 Florida Borrowers Behind on Mortgage Payments

The number of Florida homeowners either falling behind on their mortgage payments or falling into foreclosure continues to rise according to the Mortgage Bankers Association's new monthly report. Almost 14% of outstanding home loans in Florida are now at least 30 days past due, while 6% of home loans are in foreclosure. The 6% number is troubling for two reasons: it's the highest in the nation AND statistics show the number of subprime borrowers entering foreclosure is actually declining. So who's taking their place? Prime borrowers facing adjustable rate mortgage resets and much higher monthly payments. Bradenton mortgage broker Pete Minarich summed up the situation like this, "I think we're seeing just as many people choosing not to pay as those who can't pay. I think we'll be looking at this for at least another year or two."


Signs of a Bottom in Vulture-Friendly South Florida

A funny thing happened last month in Miami. Condo giant Related Group sold the last 120 units in a high-profile tower to a partnership made up of a private equity firm and Related itself. The partnership plans to rent the units for 5 years until market prices firm up in downtown Miami. Bloomberg points to these types of creative deals and growing willingness among banks to take real estate-related writedowns as signs of a bottom in South Florida. Real estate analyst Jack McCabe believes patient investors have earmarked upwards of $30 billion for distressed property acquisitions in Florida. And for those who think reaching the bottom means increased sales activity and price appreciation are around the corner, McCabe offers this caveat: "There's a purging going on. It's my belief that the vulture buyers would form the bottom of the real estate market, and we're almost there. That bottom may last for three years as foreclosure sales go on.''


Bidders Wanted: $88M in Distressed Florida Real Estate Assets

New York-based real estate banking firm Carolton Advisory Services announced they have been retained by an institutional client "to market and sell approximately $88 million of performing and nonperforming commercial mortgage loan assets." All of the assets are located in Florida with some of the larger properties concentrated in Miami, Orlando, Tampa and Jacksonville. According to Carlton, "the portfolio is characterized primarily by loans secured by single family home subdivisions as well as residential and office condominium properties in various stages of completion. The larger assets include condo loans (two with marinas), a town home project and a large equestrian-oriented land development." Interested bidders will be able submit sealed bids for individual assets, groups of properties or the entire portfolio. Interested parties should contact John MacConnell, Vice President, at 561-207-6250.