Mitch Goldstein | Coach Mitch | July 30th, 2007Coach Mitch’s REFLECTIONS™
South Florida Business Journal – Monday, July 30, 2007
Great Florida Bank said its profit fell 98% in the second quarter due to an accounting change, and reported a large increase in non-performing loans.
Coral Gables-based Great Florida (OTCBB: GFLBA) earned $65,000 for the recent quarter, compared with $3.9 million for 2006’s second quarter…
Great Florida also reported that it had $28.9 million in non-performing loans at the end of the second quarter, compared with no non-performing loans last year.
Non-performing loans are 90 days or more delinquent or are no longer accruing interest.
Great Florida said its ratio of non-performing loans to total assets was 1.71 percent at the end of the recent quarter. Analysts and regulators generally regard a ratio above 1 percent as troublesome.
Great Florida did not say if any of its problem loans are in real estate.
However, several other banks that are based in or have offices in Florida have reported sizable increases in non-performing real estate loans for this year’s second quarter.
Great Florida had $9.4 million in non-performing loans at the end of this year’s first quarter.
It ended the recent quarter with $1.7 billion in assets. The bank has 21 branches, all in South Florida
See the full article at: .www.bizjournals.com/southflorida/stories/2007/07/30/daily2.html
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Coach Mitch’s REFLECTIONS
Foreclosures are starting to hit very hard. Florida is at the top of the hit parade in foreclosures with 1 of about every 450 households in foreclosure. This is scary!
Key Miami Dade County Findings for April-May, 2007
- Number of Foreclosure Auctions: Miami Dad County had 515 foreclosure auctions during the period.
- Foreclosure Auctions Percentage: These 515 foreclosure auctions represent .066% of all Miami households.
- Foreclosure Auctions Per Household: On a household basis, .066% of Miami households had a property go to foreclosure auction during the quarter, an alarming 374% more foreclosures per household than New York City, and 166% more foreclosures per household than Los Angeles.
“The number of foreclosures per household in Miami-Dade County is particularly high for the quarter. South Florida is definitely one of the first regions we have seen to show clear signs of problems in the housing market.” stated Ryan Slack, Chief Executive Officer, www.PropertyShark.com
Beware! Many of these homes with significant delinquent mortgages will also have tax liens against them.
Depending on your strategy, this can be a benefit or a hindrance.
If you are seeking passive income and security, then buying a tax lien certificate against a property that has a significant mortgage is often a good idea because the bank holding the mortgage will most likely redeem your certificate.
If however, you are seeking to own the real estate prior to the tax deed sale, then dealing in property without mortgages or other liens against them is a much better, safer approach.
<h2>Quarterly profit plummets at Great Florida Bank</h2>
<h3>South Florida Business Journal – 4:51 PM EDT Monday, July 30, 2007</h3>
Great Florida Bank said its profit fell 98%</strong> in the second quarter due to an accounting change, and reported a large increase in non-performing loans.</strong>
Coral Gables-based Great Florida (OTCBB: GFLBA) <strong>earned $65,000</strong>for the recent quarter, <strong>compared with $3.9 million</strong> for 2006s second quarter…
Great Florida also reported that it had <strong>$28.9 million in non-performing loans at the end of the second quarter, compared with no non-performing</strong> loans last year.
Non-performing loans are 90 days or more delinquent or are no longer accruing interest.
Great Florida said its ratio of non-performing loans to total assets was 1.71 percent at the end of the recent quarter. Analysts and regulators generally regard a ratio above 1 percent as troublesome.
Great Florida did not say if any of its problem loans are in real estate.
However, several other banks that are based in or have offices in Florida have reported sizeable increases in non-performing real estate loans for this year’s second quarter.
Great Florida had $9.4 million in non-performing loans at the end of this year’s first quarter.
It ended the recent quarter with $1.7 billion in assets. The bank has 21 branches, all in South Florida
See the full article at: .www.bizjournals.com/southflorida/stories/2007/07/30/daily2.html
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<h2>Coach Mitch’s REFLECTIONS</h2>
Foreclosures are starting to hit very hard. Florida is at the top of the hit parade in foreclosures with 1 of about every 450 households in foreclosure. This is scary!
<strong>Key Miami Dade County Findings for April-May, 2007</strong>
>Number of Foreclosure Auctions: Miami Dad County had 515 foreclosure auctions during the period.
>Foreclosure Auctions Percentage: These 515 foreclosure auctions represent .066% of all Miami households.
>Foreclosure Auctions Per Household: On a household basis, .066% of Miami households had a property go to foreclosure auction during the quarter, an alarming 374% more foreclosures per household than New York City, and 166% more foreclosures per household than Los Angeles.
“The number of foreclosures per household in Miami-Dade County is particularly high for the quarter. South Florida is definitely one of the first regions we have seen to show clear signs of problems in the housing market.” stated Ryan Slack, Chief Executive Officer, PropertyShark.com
<strong>Beware! Many of these homes with significant delinquent mortgages will also have tax liens against them.</strong>
Depending on your strategy, this can be a benefit or a hindrance.
If you are seeking passive income and security, then buying a tax lien certificate against a property that has a significant mortgage is a good idea because the bank holding the mortgage will most likely redeem your certificate.
If however, you are seeking to own the real estate prior to the tax deed sale, then dealing in property without mortgages or other liens against them is a much better, safer approach.
See Coach Mitch’s “Ridiculously Simple System…” ™ for details.
Safe investing,
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