According to reports in the New York Times, the Government Accountability Office has found that federal regulators did a remarkably poor job trying to provide relief for families whose homes were in the foreclosure process. The report held that unnecessary bureaucratic delays were created by officials and that, on top of that, the reviews of loans that were in trouble were carried out by private consultants who billed too much and did very little.
The reporting held that, when having cases reviewed, the private contractors hired to take a look at loans that were in trouble and look for signs that homeowners had been kicked out of their properties improperly were not examined efficiently at all. In fact, only a very small portion of the foreclosed loans that were supposed to be reviewed were actually reviewed at all. In addition to not coming through on behalf of homeowners, the private consultants hired to review these loans racked up a total of $2 billion in fees. This, of course, has raised the ire of government officials and, predictably, of homeowners who are caught up in the foreclosure process when they should never have been.
Florida’s real estate market has been doing remarkably well in recent years, despite the fact that it was one of the hardest hit areas of the nation when the real estate market crashed not too many years ago. Many Miami homes were put into foreclosure and, even among real estate developers, there is still a great deal of discussion about how this happened. At a recent convention, one major South Florida real estate developer said that he felt that there was a certain breakdown of etiquette in the lending process, allowing homeowners to get a huge amount of funding whether or not they really had the means to pay that back. Of course, it was the mortgage writers who gave this money out, even though basic banking practices may have told them that it was a bad idea.
Return of the Affordable
Since the Miami real estate market has been picking up again, there has been a tremendous demand generated for affordable housing. Florida, South Florida in particular, is associated with luxury real estate. Some Florida real estate is among the most opulent in the world, in fact, and attracts people from all over the globe who want an estate property in an area that is undisputedly one of the most beautiful in the nation.
Even though that is the case, developers have increasingly been looking toward the affordable housing market as a good place to generate new revenue. As the Florida real estate market evolves, it may become more diverse, calming down some of the demand for housing in the affordable range and still preserving the vibrant Miami’s high-end real estate market that characterizes some of the areas of the state. Despite the fact that many homeowners suffered – and continue to suffer – as a result of the real estate crash, the Florida market is doing very well these days and people are hunting for housing again rather than being foreclosed upon.