Where are all the Foreclosures?

The Big Question is:  Where are all the foreclosures?  I am sure you have read or heard that foreclosures are on the rise and they are, but where is all the inventory?  Great Question.. The answer in my experience is more difficult to express....  I am a member of Realty Trac, which tracks this data and they indicate that Florida is one of the BIG 4 states that has been hit the hardest...  On top of that, Sarasota was a media darling nationally with huge appreciation during the boom and has been one of the worst hit markets in terms of valuations in the state with Fort Myers being the worst in the nation...

To find the answers, you will need to study history as it tends to repeat itself.  In the mid 1980's, you may have heard or remember the Saving + Loan bank debacle.  When the dust cleared, the Government & remaining  banks decided it was in their best interest not to resell the foreclosed properties, but to rent the property back to the owner that was foreclosed and wait until the market returned to a more stable market.. Just 3 years later, the Government & banks made substantial profits on reselling their foreclosures..  It reduces the supply of homes for sale on the market and when demand returns, the market will naturally appreciate.. Additionally, if the properties are vacant, vandalism, theft, mold, etc. will incur thus reducing the value and demand for the home. 

Currently, the demand for foreclosures are high, but the inventory continues to remain very low.  I check the number of HUD foreclosures on a weekly basis.. This past week had only 1 property in Sarasota county and it was located in North Port and only 3 properties in Manatee county.  Additionally, the number of bank foreclosures remains very low as well with just a few hitting the market on a weekly basis..  These properties are priced very aggressive and sell in just a few days with multiple buyers bidding on the property.

In Summary, the Government & Banks control the destiny of these foreclosures and you have to think what is in their best interest & research the past as it tends to give you a path of what most likely will happen next.