Lisa Simpson
May 22,2009
In: REO Properties

West Palm Beach Reo Properties

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West Palm Beach City is often referred to as West Palm. It is in Palm Beach County of Florida. West Palm is one of the important cities in South Florida.

Just prior to the invasion of West Palm Beach Reo properties, the city had been growing with the skyline constantly changing with new constructions. During the boom new residential houses, condos and schools with other attractions were coming up. Old run down houses were constantly pulled down and replaced with new blocs.

It was this prosperity of the city that the Fates frowned upon bringing down the curse of West Palm Beach Reo properties. By West Palm Beach Reo properties are meant units that have been repossessed by the lenders, mainly the banks, after having foreclosed upon them. At the end of it the houses are put up for auction. When the houses do not sell then the units become West Palm Beach Reo properties.

In the present mood of the market the banks are overburdened with West Palm Beach Reo properties and are trying to dispose of them by offering huge discounts. In 2008 there were 23,399 foreclosures – an increase of 97% from 11,904 foreclosures in 2007. Not all the foreclosures become West Palm Beach Reo properties as sometimes the borrowers reach an understanding with the lenders. The majority of the West Palm Beach Reo properties lying around vacant are properties of speculators who tried to make quick profits and just walked away when the housing bubble busted.

The Palm Beach Mall, the first indoor shopping complex in the county is facing foreclosure in April 2009. The owners have failed to repay $55.4 million its lender -JPMorgan Chase Bank. The owner, Simon Property Group of Indianapolis had thrown out tenants planning redevelopment. But when the tide turned the idea was dropped. Wells Fargo as a trustee of JPMorgan Chase has brought the charge. The servicers are ORIX Capital Markets.

Another casualty of the foreclosure game is Homestead in Palm Beach. Wachovia has filed a foreclosure suit against a company that had plans to develop a mobile park and against the owner of a warehouse. Yale Steam Associates purchased the mobile home park for $13.5 million in 2006 and took a loan of $9.8 million for redevelopment purposes. Wasserman Real Estate Capital bought the warehouse standing on 2.6 acres for $6.7 million in 2004 and took out a mortgage of $5 million. But now that recession has set in the developers cannot pursue their plans and are succumbing to foreclosure.