MANATEE — Manatee County’s foreclosure surge is showing signs of ebbing.
Lenders initiated 497 foreclosure actions in Manatee County Circuit Court in June, the third consecutive month that they have filed fewer suits than in the previous month, according to court records. There were 517 filings in May.
Yet local foreclosure filings remain elevated: There were 3,193 through the first six months of 2009, 20 percent ahead of last year’s record pace.
There are several factors behind the recent drop in filings, experts said Thursday.
Anne L. Weintraub, a Sarasota real estate attorney with Syprett Meshad, said a substantial increase in filing fees that took effect June 1 had some impact. She said lenders also are becoming more willing to explore alternatives to foreclosure because of the cost of litigation.
She and another attorney also credited various foreclosure-prevention efforts, saying they’re causing lenders to hold off while they assess whether delinquent borrowers qualify for loan-modification or refinancing programs.
But “by September or October, I expect to see it rise again because by then they will have worked through those requirements,” said Dawn Bates-Buchanan, a Gulfcoast Legal Services attorney who represents homeowners facing foreclosure.
Federal officials are hoping to prevent a spike by expanding a refinancing program for borrowers who are “underwater,” or owe more than their home is worth. Those who owe up to 25 percent more than their home’s market value will become eligible for the program; now, the limit is 5 percent.
The change potentially makes 5.6 million more U.S. homeowners eligible for the Making Home Affordable program, according to Zillow.com. But critics said it likely will have limited impact in Manatee, where Zillow said property values have fallen by nearly 50 percent since their 2005 peak.
“I have yet to see it” being used in Manatee, Bates-Buchanan said. “It’s not something that they (lenders) are discussing or bringing to the table.”
Also, a Florida Supreme Court task force is developing a proposed statewide alternative dispute resolution process for foreclosure cases.
The task force, which includes 12th Judicial Circuit Chief Judge Lee Haworth, is expected to submit a final report in mid-August.
Weintraub said she expects the task force also will lead to the adoption of uniform methods to prevent foreclosure.
“Nobody wins from foreclosure and we are seeing many neighborhoods that are casualties of this crisis,” she said. “We all need to work together to promote the interests of our community and keeping individuals and families in their homes.”
A Bradenton Herald analysis of June foreclosure filings shows:
n 57.5 percent of the properties being foreclosed on were homesteaded, the sixth consecutive month that primary homes have outnumbered seasonal and rental homes.
n Bayshore Gardens had the most foreclosure filings with nine. Following, with eight each, were the Greenbrook Village section of Lakewood Ranch; the River Plantation subdivision in Parrish; and the Stoneybrook at Heritage Harbour neighborhood.
Duane Marsteller, transportation/growth and development reporter, can be reached at 745-7080, ext. 2630.
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