Posted on Wednesday, 10.07.09
Strengthen by increasing Florida foreclosures and low prices, investors are returning to the Miami real estate
market and paying cash for distressed homes in order to do a quick turnaround or a rent them short term then sell for an investment.
These flippers are unlike the scavengers that jacke dup prices during the Miami real estate
boom; today's flippers are knowledgeable capitalists who could make a positive change by buying dilapidated and abandoned homes, fixing them up and selling them for a market-bearable price.
The only problem is these guys are competing with regular folks looking for deals and struggling to find loans.
Many of these Miami homes for sale
may carry large tax liens and have been stripped of appliances, toilets, countertops.
Floruda foreclosures in Palm Beach County grew considerably in August, with 4,150 receiving a foreclosure filing. This is a 110% increase from the same time the previous year.
In August, St. Lucie County had 1,649 filings, up 57% from a year ago and Martin County, with 248 foreclosures, was up 8% from August 2008.As unemployed workers struggle with payments in 2010, another wave of foreclosures is expected to hit Florida.
The fact that buyers may have trouble getting Federal Housing Administration loans if the home has changed hands within the past 90 days is slowing down the flippers.
FHA has relaxed its 90-day rule for buyers using federal Neighborhood Stabilization Program Grants in order to move the glut of houses on the market. However the policy still aims to prevent the greedy turnarounds and sky-high price increases that made ``flip'' a four-letter word.