Miami Foreclosure Lawyer Blog

South Florida foreclosures are surging once again, as one out of every 30 homes was in some form of distress during the first six months of the year, the Miami Herald reported.

Hiring a Miami foreclosure attorney is the best course of action for homeowners seeking to stop home foreclosure in South Florida or for those seeking to avoid or prevent a foreclosure sale. As we continue to report on our Miami Foreclosure Lawyer Blog, homeowners have a variety of options, including short-sale, mortgage loan modification, refinancing, strategic default, bankruptcy or simply walking away. Each case is unique and each option has advantages and disadvantages. Speaking with an attorney can provide struggling homeowners with a clear view of their best course of action.

RealtyTrac anticipates little change in the statistics for the last half of 2010.

Through the first six months of 2010, a total of 95,357 foreclosures were reported in South Florida, an increase of 9.5 percent over the same six-month period last year. Those figures combine initial foreclosure filings, auction notices and bank repossessions. In Miami-Dade County, 38,395 properties were in foreclosure -- up 11.5 percent from a year ago. Broward County had 37,988 in the first half of the year -- or 1 in every 21 homes. That represents a 3.6 percent increase over a year ago.

While the number of distressed properties has increased, the first half of the year did show a decrease in new foreclosure filings. Experts say the real estate market will not begin recovering in earnest in South Florida until the distressed properties quit hitting the market at discounted rates. Many don't expect that to happen until sometimes in 2012.

Florida's rate of 1 in 30 homes in the highest in the nation. Nationwide, 1 in every 78 homes is in some form of foreclosure. Florida ranks second only to California for total number of foreclosures. Nationwide, there were more than 1.9 million foreclosures in the first half of the year.

Continue reading "South Florida foreclosures lead the nation; struggling homeowners should consult attorney to stop foreclosure in Miami" »

South Florida short sales, loan modification and foreclosures are having a devastating impact on consumer credit scores. A Miami foreclosure defense lawyer can not only help stop foreclosure but can advise you on the best options for protecting your credit and the long-term financial future of you and your family. We can help you avoid foreclosure, stop foreclosure sales or assist you with determining whether a short sale or loan modification is right for you.

MSNBC reports that one-fourth of consumer credit scores are 599 or below. Twenty-five percent of consumers -- or more than 43 million people -- now fall below 600. Before the Great Recession, just 15 percent of consumers, or about 25.5 million people, fell below the 600 threshold.

Your FICO credit score ranges from 300 to 850. A 700 score was once enough to qualify for the best rates on most loans. That threshold has inched toward 750 during the recession. Consumers below 600 will be unlikely to qualify for auto loans, mortgages or even credit cards under the new tighter standards put in place by lenders.

Officials cite foreclosures and unemployment as the two main drivers of plummeting credit scores. A foreclosure can chop 150 points off a credit score. That means, a consumer with a 750 credit score -- the score needed to get the best rates even under new tighter standards -- could drop below the 600-point threshold as the result of a mortgage foreclosure.

Struggling Miami homeowners who opt for loan-modification or short sales can still face significant damage to their credit scores. A South Florida foreclosure defense attorney can help determine the best course of action for protecting your finances, your credit score and your future.

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From Miami to Beverly Hills, the rich are surrendering homes to foreclosure and simply walking away from what they view as a bad investment, the New York Times reported.

As our Miami foreclosure defense lawyers continue to report, South Florida homeowners looking for foreclosure help have a number of options. But weighing the risks and rewards of a home-loan modification, short sale or strategic default is best done with help of an experienced real estate attorney. Banks, and even the government, are attempting to guilt-trip hardworking homeowners into keeping homes worth far less than what is owed. Meanwhile the wealthy, and their lawyers, are simply walking away and living to fight another day.

Whether it's a primary residence, second home or an investment property, the rich have stopped paying mortgages at a far greater pace than the rest of the population. The Times reports that more than 1 in 7 homeowners with loans of a million dollars or more are seriously delinquent. The report suggests that the wealthy are purposefully dumping properties just as they would a bad investment.

As we reported on our Miami Foreclosure Lawyer Blog, strategic defaults (choosing to walk away) and short sales (selling for less than what is owed) present their own risks. If the bank chooses to pursue a deficiency judgment, a homeowner could be left owing the difference between the mortgage balance and what a home sold for at auction. Seeking the advice of an experienced Miami foreclosure attorney is the best option to protect your rights and the long-term financial well-being of you and your family.

Continue reading "Wealthy homeowners in Miami choose foreclosure; consulting an attorney the best option" »

In Miami and South Florida, Strategic Defaults are on the rise. Homeowners stop paying their mortgage and fight the foreclosure with an experienced defense attorney. They stay in their homes for years. There is no rush for a loan modification or shortsale. They know the dangers of a deficiency judgment but know there is a way out. One thing for sure, its only a strategic default if you have a strategy with experienced defense counsel.

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South Florida homeowners holding adjustable rate mortgages are among a new wave of property owners seeking to avoid foreclosure. A rising number of commercial property owners are also seeking ways to stop foreclosure.

Hiring a Miami foreclosure defense attorney is the first step for a homeowner or business owner looking for foreclosure help in Miami. As we have reported on our Miami Foreclosure Lawyer Blog, mandatory mediation, default judgments and damaged credit are just a few of the obstacles to consider when determining the best course of action for your situation.

The Miami Herald reports that the number of foreclosures in Miami-Dade has fallen 38 percent so far in 2010, to 18,327 from the 29,674 reported last year. But a new wave of struggling owners are emerging as the economy catches up to commercial property owners -- where vacancies are reaching new highs -- and those holding adjustable rate mortgages -- which are resetting to higher rates on properties worth just a fraction of their original purchase price.

The three judicial circuits in South Florida hope new mediation requirements will help keep cases off crowded court dockets. Miami-Dade started required mediation last summer. Broward and Monroe began their programs on July 1 under a statewide order from the Florida Supreme Court. Still, court personnel report that challenges remain as bank representatives show up unprepared. Hiring a South Florida attorney experienced with mortgage foreclosures can help ensure a homeowner is prepared to act in their own best interest at mediation.

The high-value of many commercial properties give banks a real stake in working with property owners to make sure the debt is ultimately satisfied. Unfortunately, banks often seem as disorganized in dealing with commercial loans as they do on the residential side. A commercial property owner needs to hire aggressive and experienced legal representation to protect their rights.

For homeowners with adjustable-rate mortgages, the stakes are just as high. Having survived the downturn, they are now facing rising interest rates and payments on properties that are typically worth far less than what is owed. We have written extensively about the risks and hassles of loan-modification and having an attorney on your side is well worth the cost when fighting for your rights as a homeowner.

Continue reading "Miami mortgage foreclosure help available for those with commercial or adjustable-rate mortgages " »

Fewer South Florida homes are entering foreclosure and new rules aimed at speeding the foreclosure process make hiring a Miami foreclosure defense lawyer more important than ever when it comes to protecting your rights as a homeowner.

Hiring a Miami foreclosure defense attorney is critical for homeowners looking to get out of foreclosure in Miami. Courts are changing the mediation process and banks are taking other steps to streamline the process to better protect themselves against loss, the Miami Herald reported. Homeowners may face more scrutiny of their finances and a shorter-foreclosure process. Until now, the lengthy foreclosure process has allowed some homeowners to remain in their homes for months, or even years, without making payments.

Online auctions, mandatory mediation and the hiring of retired judges to focus on foreclosure cases, are all speeding up the process. New measures, including an upcoming Fannie Mae program, are also designed to shorten the length of time required to process a foreclosure.

New rules handed down by the Supreme Court require borrowers to receive financial counseling and provide full disclosure documentation 30 days before mediation. At mediation, lenders must have a representative present with the authority to settle a case. Experts believe the process could reduce the court's foreclosure caseload by half.

Forced mediation and financial disclosures could also increase the risk for homeowners who have made a decision to walk away from their mortgage -- sometimes called strategic default. A Miami foreclosure lawyer will be in the best position to help protect your legal rights and the financial well-being of you and your family.

Broward and Miami-Dade have also moved to an online auction of foreclosed properties. The systems have sped up the process of selling bank-owned real estate, which previously required three weekly auctions in the courthouse lobby. Miami-Dade is now auctioning about 1,000 properties a week with about 20,000 in the sales queue.

Flood of South Florida foreclosures starting to recede - 06-27-2010 - MiamiHerald.com.pdf

Continue reading "New rules, faster foreclosures, make hiring a Miami foreclosure attorney a critical step in protecting your rights" »

More than a third of the borrowers who have enrolled in the Obama Administration's mortgage modification effort are no longer participating in the program, the Associated Press reported.

In determining how to avoid foreclosure or stop a foreclosure sale, your best option is to consult with a Miami foreclosure defense lawyer to discuss your rights. In order to properly stop mortgage foreclosure, all options need to be on the table. An experienced real estate attorney will be in the best position to assist in protecting your rights and the future financial well-being of you and your family.

Our Miami Foreclosure Lawyer Blog continues to report problems with such programs. We reported in March that more than half of borrowers who enter mortgage modification are in trouble again within nine months. The unprecedented downturn in the real estate market means 1 in 4 borrowers owe more than their home is worth. This is particularly true in South Florida, which is among the most devastated regions in the nation. The median home values have fallen 28 percent nationwide to $165,100. In Florida, values have fallen by nearly half -- 45.7 percent -- the third-worst in the nation behind Nevada and Arizona.

In many cases, a mortgage modification will not be the best answer. The latest report on Obama's program found that more than one-third of the 1.24 million borrowers who have enrolled in the $75 billion mortgage modification program have dropped out. Last month, 155,000 borrowers left the program, bringing the total to 436,000 since the program began in March 2009. That exceeds the total number who have received modifications and remain current on their loans -- about 340,000 borrowers are still paying on time after a loan modification.

Economists believe the majority of those seeking mortgage modifications will end up in foreclosure, which could slow the broader economic recovery. One of the reasons for the high failure rate is that the administration pressured banks to sign borrowers up without proof of income -- one of the issues that got us in this fix in the first place. When banks later moved to collect such information, many borrowers were disqualified or dropped out of the program.

Continue reading "Mortgage loan modification no easy answer for struggling Miami homeowners" »

The Miami Herald reports about a thriving private industry that is buying debt from banks and chasing homeowners for mortgage balances owed in the wake of a short sale or foreclosure.

This is another example of why it is critical to consult an experienced Miami foreclosure attorney for those seeking mortgage foreclosure help or for homeowners trying to stop a foreclosure sale in South Florida. Companies are waiting to go after homeowners who close short sales without a waiver of deficiency.

The New York-based Deficiency Judgment Recovery Network is one such company. Formed in late 2009, the company reports it is attempting to collect from "hundreds, maybe thousands" of Florida homeowners who though completing a short sale would put their housing nightmare behind them. The company is either hired by lenders to collect deficiencies or buys the debt for pennies on the dollar. A deficiency is the difference between a homeowner's mortgage balance and what a home brought through short sale or foreclosure.

"People are under the assumption that the banks are so busy modifying home loans that they don't have the bandwidth or stomach to go after those who are walking away. That's a bad assumption," said Joshua Rand, whose company motto is "We turn shortfalls into windfalls."

Before the downturn in the real estate market, such deficiencies were rare. Now, as many as half of homeowners owe more on their property than it's worth in the current market -- particularly in hard-hit states like California, Florida and Arizona.

As one industry watcher put it: "It's going to be a blood bath."

Florida courts handled 398,825 foreclosures last year -- not including short-sales, which account for more than one-third of all real estate transactions in some areas of South Florida. By the end of this year, Realty Trac predicts a total of 3.5 million more foreclosures nationwide.

In Florida, lenders have up to five years to file a deficiency judgment and up to 20 years to collect.

Continue reading "Waiver of deficiency critical for Miami homeowners facing foreclosure or short sale" »

Bank of America has agreed to pay $108 million to settle federal charges involving excessive fees charged to borrowers facing foreclosure, the Associated Press reported. The allegations were levied against Countrywide Financial Corp., which Bank of America purchased nearly two years ago.

This is yet another case where banks have been caught taking advantage of borrowers. Hiring a trial lawyer is your best option to stop foreclosure in Miami. Borrowers should seek legal help to protect their rights as a homeowner. We offer foreclosure help in Miami and throughout South Florida. Other tactics banks use include sloppy paperwork and missing promissory notes. In a foreclosure proceeding, a bank has the burden of proof. A comprehensive discovery investigation conducted by an experienced Miami foreclosure attorney is the best way to stop a foreclosure.

Countrywide's misconduct has reached near legendary status. Last year, the top three executives of the company were charged with civil fraud and insider trading by the Securities and Exchange Commission. In this case, the $108 million settlement seeks to refund money to about 200,000 borrowers. It is the largest mortgage industry settlement ever obtained by the Federal Trade Commission.

FTC Chairman Jon Leibowitz accused Countrywide of "callous conduct, which took advantage of consumers already at the end of their financial rope."

Countrywide slapped borrowers who were behind in their mortgages with several thousand dollars worth of fees at a time. The fees included charges for property inspections and landscaping that were far above market rates; the company created subsidies to hire vendors and marked up the prices of the services.

"Countrywide profited from making risky loans to homeowners during the boom years, and then they profited again when the loans failed," Leibowitz said. It could take months to contact affected borrowers; authorities describe Countrywide's record keeping as "beyond abysmal."

Consumer advocates allege banks have not done enough to prevent foreclosures precisely because of the profits involved in collecting such fees -- Countrywide even identified it as "part of our diversification strategy" as foreclosures soared.

Countrywide is also accused of making false claims to borrowers in bankruptcy about the amount owed on their loans and failing to tell borrowers about fees and other charges. The settlement requires Bank of America to notify bankrupt borrowers about what they owe on a monthly basis.

Continue reading "Mortgage foreclosure help in Miami can prevent banks from taking advantage of struggling homeowners" »

Struggling homeowners continue to use foreclosure as the financial break they need to get back on their feet and improve their financial well-being, according to a report published in The New York Times.

Foreclosure doesn't have to be an end. More and more, South Florida homeowners are finding it offers the chance for a new beginning. If you are looking to stop foreclosure in Miami or are facing foreclosure in South Florida, hiring a Miami foreclosure defense attorney can help protect your rights and the financial future of you and your family.

Homeowners facing foreclosure can often remain in their homes, rent free, for many months, which will permit them to begin rebuilding their financial lives. The glut of foreclosures and the increasing number of legal challenges, has further slowed the process. The Times reports the average borrower is delinquent for more than a year -- 438 days -- before being evicted. In 2008, the process took about 8 months.

In Florida, the average length of time spent in foreclosure is 518 days, or about 18 months. Only New York reports a longer wait, at 561 days. The length of time in foreclosure can be extended dramatically with a comprehensive foreclosure defense litigation strategy.

Still, there are pitfalls, and a Miami foreclosure defense lawyer will be able to help determine the best course of action. As we reported on our Miami Foreclosure Lawyer Blog, dues owed to homeowners associations can quicken a foreclosure action and deficiency judgments can lead to financial problems down the road.

While anger at banks over the housing crisis is fueling part of the trend, many homeowners are staying in their homes rent free as an act of self-preservation. And, with so many homeowners owing far more on their homes than they are worth in the current market, free rent is likely to be their only return on investment. Nationwide, more than 650,000 households have not made a mortgage payment in 18 months. In about one-fifth of those cases, the lender has not even begun the foreclosure process.

Click here to read The New York Times article.

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Many Banks and TV Pundits place blame for the mortgage foreclosure crisis squarely on the homeowners. How dare a delinquent borrower in Miami or South Florida try to stop foreclosure by hiring an experienced foreclosure defense attorney?

Well, Jon Stewart of the Daily Show on Comedy Central recently filed an excellent report on how badly the Banks are taking advantage of us since getting billions of taxpayer bailout dollars. Banks cannot claim the moral high ground on this issue.

A reduction in the number of Florida foreclosures this year is being credited to a recent Florida Supreme Court ruling that requires banks to prove they are the rightful owners of a home before seeking a foreclosure action, the Miami Herald reported.

Hiring an experienced Miami foreclosure defense attorney can help protect your rights when dealing with a foreclosure, short-sale or loan modification in South Florida. Anyone with any experience in dealing with foreclosures in Miami or elsewhere in South Florida knows it is quite common for a bank to file a notice that the original mortgage documents have been lost. The advent of mortgage-backed securities means most mortgage notes were packaged and sold as investments.

Law firms working for banks have routinely filed "lost note" claims with default notices, regardless of whether anyone attempted to find the note, according to Miami-Dade Circuit Court Judge Jennifer Bailey.

"It was very confusing. How can you foreclose on the note if the note is lost?'' Bailey said. "The judges would be trying to track the note and they're saying they own it, but don't have it and don't know where it is."

The new rule was approved in February. It was meant to address the estimated backlog of 500,000 Florida foreclosures clogging the court system. It also permits judges to sanction plaintiffs who make false claims regarding missing notes. Hiring an experienced Miami real estate attorney can help ensure a homeowner is treated fairly.

While a bank is not required to produce the note to seek a foreclosure under the new rules, it must act in good faith with both the homeowner and the courts. Previously, such cases often sailed through the system when the homeowners did not contest the foreclosure.

Judges have even found multiple lenders filing on the same property because they didn't know who owned the note.

Continue reading "Miami foreclosure defense aided by Supreme Court ruling requiring banks to prove home ownership" »

Lenders dealing with foreclosures and short sales in South Florida and across the nation are expected to file a barrage of lawsuits seeking to recoup losses from homeowners, the Miami Herald reported.

An experienced Miami foreclosure defense attorney should assist buyers dealing with a short sale or foreclosure. Without a written agreement from your lender, you are exposing yourself to the possibility of being slapped with a huge judgment for outstanding mortgage debt -- the difference between what your house is worth now, and what you owe on the mortgage. Get an experienced Miami real estate attorney and make sure you protect your financial well-being by seeking a waiver of such deficiency judgments. Otherwise, a short sale may help the bank, but won't help you.

"It will be a dramatic problem because the borrowers will not know it's coming," Frank Alexander, a law professor at Emory University in Atlanta, told the Sun-Sentinel. Florida law gives banks five years from the date of a sale to file a deficiency judgment and up to 20 years to collect. Lenders can garnish wages, make claims against a borrower's assets and use other means of collection.

While such deficiency judgments were rare before the housing meltdown, so were foreclosures and short sales and borrowers frequently had few assets worth chasing in an attempt to collect. But, with the advent of strategic default, banks are finding borrowers often walked away with significant assets and the bill collectors are suiting up for action.

A recent survey found more than 4 in 10 homeowners said they would consider walking away from a property with an underwater mortgage -- meaning more is owed on the home than it is worth in the current real estate market.

Other homeowners at high risk of collection action include those who ransacked or damages properties in foreclosure, either out of spite or for a profit.

Mortgage companies typically won't pursue homeowners who negotiate in good faith, or those who default because of job loss, health problems or other unforeseen circumstances, according to the Herald's report. But don't take the lender's word for it; work with a qualified and experienced attorney to get it in writing.

Even if the mortgage companies don't pursue collection action, they can sell the debt to a collection agency at a steep discount, and the debt collectors will come calling with all of the aggressive and disruptive tactics that they employ.

Continue reading "An experienced Miami foreclosure attorney can help protect against deficiency judgments" »

Florida is one of several states that plan to use $1.4 billion in aid from the Obama Administration to help unemployed and underwater homeowners avoid foreclosure, CNN reported.

While this is another sign that help may be on the way for underwater homeowners or those facing foreclosure in South Florida, hiring an experienced Miami foreclosure defense attorney is your best chance at being one of the few who gain access to the assistance necessary to protect your financial well-being.

Consumer advocates argue direct payment to struggling homeowners is necessary to help stem the tide of the mortgage crisis, which has led to plummeting property values, more underwater homeowners and more foreclosures in a repeating downward spiral. But housing experts contend paying off loans for out of work and struggling homeowners could deter people from looking for work.

The Hardest Hit Fund was announced in February and is aimed at helping out-of-work and homeowners in the hardest hit areas avoid foreclosure. Despite past efforts, home prices continue to decline and foreclosure rates remain at record highs. As part of the effort, the federal government is giving $2.1 billion to 10 states. Other states include Michigan, Arizona, California, Nevada, North and South Carolina and Ohio.

Continue reading "Program to pay struggling South Florida homeowners facing foreclosure, unemployment, underwater mortgages" »

Skyrocketing foreclosures continue to push people to extremes. Recent cases include the suspect in the attempted bombing of Times Square and an Ohio man who refused to leave his home when the sheriff arrived with an eviction notice.

As South Florida homeowners continue to struggle with foreclosure, underwater mortgages and eviction, hiring an experienced Miami foreclosure defense attorney is the best course of action to protecting your rights and the financial well-being of you and your family. While the New York case is being linked to a possible terrorist attempt, cases of homeowners locking themselves in their homes, and even sheriffs who are refusing to serve foreclosure and eviction notices, continue to surface.

Such cases illustrate the need to be proactive early in the process and to seek the guidance of a qualified Miami real estate lawyer to protect your rights before the situation gets out of control.

The suspect in the attempted bombing of Times Square in New York City was dealing with a foreclosure action, MSNBC reported.

Pakistani-born Faisal Shahzad, 30, and his wife, were facing foreclosure on their Shelton Connecticut home and had abandoned it months ago. The lawn was being mowed on behalf of J.P. Morgan Case & Co., which issued the mortgage when the home was purchased in 2004. Chase Home Financial filed the foreclosure action against the couple last September; court documents indicate neither Shahzad nor his wife showed up to defend themselves. The most recent documents in the case were dated April 23.

Meanwhile, the Miami Herald reports that an Ohio man facing eviction locked himself inside and vowed to stay until a moratorium has been declared on foreclosures.

The man began his crusade on Sunday, along with five members of a group calling themselves the Toledo Foreclosure Defense League. The homeowner said he has attempted to work with the bank and done everything possible to save his home. He said he fell behind on the mortgage last year, after having surgery and losing his job. He said he has lived in the home for 20 years. The sheriff said he'd given the man extra time but had no choice but to evict him.

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