Borrowers have defaulted on nearly $65 billion in financing in the tricounty South Florida region since the real estate crash began in 2007 as an increasing number of strategic defaults drive up the total amount past due, according to a new report from CondoVultures.com.

In the first eight months of 2010, lenders have initiated nearly 44,000 foreclosure filings - the first step in the repossession process - seeking repayment of nearly $12 billion in outstanding loans secured by properties in Miami-Dade, Broward, and Palm Beach counties, according to the report based on the Condo Vultures® Foreclosure Database™.

South Florida borrowers - some of which are choosing not to pay their mortgages despite having the financial means to do so - are on track to default on more than $18 billion in real estate loans by the end of the year, according to the report compiled using Clerk of the Court records from Miami-Dade, Broward, and Palm Beach counties.

"An interesting trend is emerging in South Florida in that the number of foreclosure filings is decreasing but the average loan amount in default is increasing due in large part to borrowers who are strategically defaulting," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC. "Our research suggests that many South Florida borrowers are opting to not pay their mortgages, and virtually live for free, until the banks can repossess their properties byway of the foreclosure process. In South Florida, the foreclosure process has tripled in time from an average of six months to nearly 18 months today."

Condo Vultures® is assembling a panel of experts on Sept. 14 in Downtown Miami to discuss the issue of strategic defaults and other foreclosure trends in a seminar entitled "Concerns Grow About Double Dip For South Florida Real Estate."