Miami Repo Homes

Miami is in southeastern Florida and is the seat of Miami Dade County. It is a gamma world city. Of late the boom has suddenly come to a halt and dark clouds are overshadowing its thriving health. Prophets of doom – the philosophers and historians say that just as everything from tree to man grows and decays so too does countries and states. What leads to it are incidental causes but the prime reason is the inevitable cycle of proud clouds falling as rain only to rise again to fall. It is an inevitable cycle.

To understand what is meant by repo homes a little digging is required. Repo Homes in Miami is the shortened form of repossessed houses. This brings us to the root question of what are repossessed houses and why is there so much talk about it. Repossessed houses are those units that are taken back by the bank after failing to sell it at the Sheriff’s auction. It is the tail end of the foreclosure process. Foreclosures are nothing new on the mortgage scene. But why is it that it is making the rounds on everybody’s lips? It is the introduction of the sub-prime mortgage category of loans with floating interest that has kicked up all this dust. The prime loans were given for long periods having a fixed interest for those who had a steady income. Naturally a sizeable section of the population was left out. To satisfy their demands the sub-prime section to buy Miami Repo Homes was introduced with practically no down payment and initial absurd low interests. It is called predatory lending because the lenders were in such a hurry and scurry that no enquiries were made about income statements and the value of the house was falsely escalated to facilitate the sanction of big loans to buy Repo Homes in Miami. Many factors goaded the lender – prices of real estate were rising and this trend could never go back gear. Secondly huge commissions and fees were involved. The targets were the houses. If prices rose the way they were going then within a few years there would be quite a few millionaires. Another factor was these land sharks were not content with the rising equity on the houses but they wanted to utilize these – and so the mortgages were bundled, made into packets and transferred to the Wall Street club that stretched across the globe.

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When the next chapter of sub-prime unfolded and interest began to rise phenomenally then borrowers began to default one by one. Foreclosure steps were initiated. With so many houses to be auctioned the banks now came up against a wall – prices of housing fell and there were not enough buyers! So banks took over or repossessed the houses and directly tried to sell it off. 

On the Internet current information is available of facts and figures of foreclosed houses and one of the best sites is Miami Foreclosure Homes - only a click away for the interested. In Miami Dade County currently there are 943 foreclosures, 125 sitting for auction and 6,076 in the pre-foreclosure stage. But figures change constantly.