The number of filings for foreclosures has risen dramatically in recent months but this trend is not expected to continue in 2013. DBRS (Dominion Bond Rating Service) expects that foreclosures will decrease dramatically next year in part as a result of the sharp rise in the number of short sales. This shift was evident as early as the first quarter of 2012 as the number of foreclosures reported for the January to March timeframe were 36.7% less than a year ago but short sales showed a notable increase of 19.7%. The second quarter of this year revealed similar results.
Preliminary projections based upon these statistics indicate a possible 138,000 completed short sales in the second half of 2012 as well. Due to the fact that short sales are a highly effective means of lowering the severity of loss to mortgage lenders and banks for distressed properties, DBRS expects that more lenders will be increasingly responsive to short sale bids in 2013. Based upon this prediction, it is assumed that foreclosures will continue to decline next year as short sales continue to be the solution of choice for Miami homeowners and banks alike.