South Florida housing recovery hindered by wary lenders

The Miami Herald reports:

In Miami-Dade, the median single-family home price, for instance, has fallen almost 49 percent from a high of $402,229 in January 2007 to $205,600 last month. In Broward, the median has fallen 41 percent, from a high of $374,787 to $219,500. The median is the price point at which half the homes sold for more and half for less.

In February, the administration announced a rescue plan that set aside $75 billion to subsidize lower monthly payments for as many as five million home buyers facing foreclosure. Also under the plan, an additional four million homeowners current on their payments would be allowed to refinance. The plan, however, applies only to borrowers who owe between 80 percent and 105 percent of the current market value of their property, with loans owned or backed by Fannie Mae or Freddie Mac.

The loan-to-home-value standard automatically eliminated almost 300,000 borrowers in Miami-Dade and Broward, according to an analysis by Zillow.com.

''So many people are a good 30 to 40 percent under water,'' said Melinda Payan, a mortgage broker based in Southwest Ranches with clients in South Florida and Atlanta. Payan said customers in Atlanta were benefiting from the program, but not here, where loan modifications seem like the only option.

Recovery isn't just around the corner in Florida.You'll want to read this one.