Bank of America, widely recognized as the most uncooperative lender in short sale negotiations, has recently partnered with California-based Equator (REOTrans) to electronically process short sale transactions.

It is not a secret to anyone that the rate of foreclosures in south Florida has increased more than 25% since last year at this time. It’s also not a secret that investors with cash and first time home buyers are gobbling up foreclosures within days of their hitting the market, often paying a premium over asking price. This is occurring during what is still considered a buyer’s market. Realtors continue to report offers in the dozens for reasonably priced foreclosure properties.

Although South Florida continues to see increasing sales figures in residential real estate month after month, there are two aspects of this phenomenon that are striking. The first is that more than 80% of the sales we see are in ranges of $350,000 and under. The second, is that well over 50% of those lower priced homes are in short sale or foreclosure, with short sales predominating.

Just when you thought it was safe to go back into the real estate investment market in South Florida, commercial property foreclosures jump out of the news and bite owners right in their wallets. Of course, the ill fortune of former investors becomes the very good fortune for new investors waiting on the sidelines with pockets full of cash.

Foreclosures are on the rise all over the country. As people are losing jobs and as wealth vanishes, even mortgages that are not subprime are going into default. Yet, as more people abandon their homes because they cannot pay their monthly mortgage costs, hungry investors with cash are scrambling to purchase those homes at bargain rates.

Celebrities and rich people are also hurt by this economy as they also lose houses and default on loans. TMZ now reports the news about Lisa Wu Hartwell foreclosure.

Bidding wars are breaking out again over short sales and foreclosures in South Florida, as real estate heats up. (Foreclosures are also known as “bank owned” or “REOs.”) Our home sales are up 30% over last year; our prices, fortunately, haven’t yet begun to rise.

Foreclosures are soaring in California with 473,652 foreclosed homes and thousands more nearing foreclosure. California continues to have the highest number of foreclosures regardless of the government intervention loan modification programs.

The percent of mortgages 30 days or more overdue rose to 8.49% in May according to LPS Applied Analytics, setting a new record. Rising unemployment rates are fueling these delinquencies, and complicating the problem of preventing foreclosures.

A new law which took effect June 15, 2009 requires that banks in California give homeowners at least three months notice or attempt to renegotiate the existing loan before they can foreclose on the existing mortgage.

A new bill signed by President Obama helps to protect tenants in properties that are targeted for foreclosure. The bill – S. 896, P.L. 111-22 – was signed on May 20, 2009 and includes a provision for a nationwide eviction notice of 90 days for tenants that live in properties that are foreclosed on.