Miami Foreclosure Lawyer Blog

The number of homeowners who defaulted on their home mortgage loans, even after getting cheaper terms through the government's home loan modification program, doubled in March according to an article this month in the New York Times.

This is another example of why loan modifications are not always the best answer for South Florida homeowners struggling with underwater mortgages, foreclosure or bankruptcy in the Miami area. As one of the nation's hardest-hit real estate markets, homeowners need an experienced Miami foreclosure defense attorney to push for a reduction in principal or assist you and your family in seeking other alternatives.

As we reported last month on our Miami Foreclosure Lawyer blog, more than half of all homeowners continue to struggle even after loan modification.

The latest data, released Wednesday by the U.S. Treasury Department, shows the number of terminations in the program has skyrocketed to 2,879 in March, up from 1,499 in February and 1,005 in January. Almost all terminations were apparently the result of a borrower being unable to make new payments.

While the government's stated goal is to assist 4 million homeowners through modification, only 227,922 modifications had been made through the end of March.

Continue reading "Defaults in home-loan modification program increase; consulting an attorney the best option" »

South Florida homeowners considering strategic default and foreclosure are not alone. Matt Lauer of The Today Show on MSNBC ran an interesting story on the problem hitting homeowners throughout the country.

If you are considering a strategic default it is best to hire the right foreclosure defense attorney.. Your chances of avoiding a deficiency judgment and facing financial ruin are much better with good attorney on your side. The risks of a strategic default may be big, but they can sometimes be avoided by negotiating from strength with your lender.

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South Florida homeowners have been devastated by the foreclosure crisis, with Miami and the Fort Myers/Cape Coral areas among the hardest-hit areas in the nation in terms of foreclosures, underwater mortgages and homeowner's seeking loan modification or facing bankruptcy.

During the boom years, many of the nation's high-dollar mortgage loans were made in South Florida. For homeowners facing the loss of million-dollar properties, hiring an aggressive Miami foreclosure defense attorney is vital step toward protecting your rights.

As the Wall Street Journal reported recently, banks are moving aggressively to recoup loses for mortgages on valuable property, from estates in Westchester County, New York to Nicolas Cage's Bel-Air mansion. In February alone, banks scheduled 352 multi-million dollar homes for foreclosure action.

While the numbers remain small compared to foreclosures at other income levels, the recent spike suggests banks continue to move aggressively when high-dollar mortgages are on the line. And statistics show that big borrowers are more likely to default than ordinary homeowners. Studies suggest as many as 14.8 percent of such loans were more than 90 days late as of the end of January. In Miami-Dade, three large foreclosures in the last six months include a 4,655-square-foot home in Sunset Islands; a 8,443-square-foot house in Coral Gables; and a condo in Miami Beach. All three were valued at between $3.5 million and $4 million.

Continue reading "South Florida's million-dollar homeowners need tough foreclosure defense representation" »

Banks are picking up the pace when it comes to approving short sales in the Miami area and across the country, a trend expected to continue in the coming months as the government pays lenders to close the deals, CNN Money reported.

However, loan modifications are still voluntary and many banks still refuse to offer any assistance to struggling home owners. A Miami foreclosure defense attorney can best assist you in exploring your options for dealing with an underwater mortgage, short sale or foreclosure in the Miami area.

As we reported last month on our Miami Foreclose Lawyer blog, the government's latest plan would seek to get mortgage companies to reduce payments to no more than 31 percent of a homeowner's income, suspend payments for the unemployed and reduce the total balance to no more than 115 percent of a home's value. The effort is aimed at assisting underwater homeowners and those struggling to pay their mortgages amid the economy downturn and real estate collapse in South Florida and elsewhere in the country.

Homeowners who are underwater on their mortgage owe more than their home is worth, largely due to plummeting resale values. A short sale is an agreement between a bank and a borrower to permit a home to be sold for less than it's worth, allowing the borrower to walk away.

However, a qualified Miami real estate attorney should always be consulted when considering a short sale, which can have tax consequences and other disadvantages best explained by a legal professional hired to protect your interests.

CNN reports that short sales accounted for 17 percent of all residential real estate sales in February, up from 13 percent in November. The new government program will pay borrowers up to $3,000 in relocation expenses and pay mortgage companies $1,500 for completing a short sale.

Continue reading "South Florida short sales an option best discussed with a Miami Foreclosure Attorney" »

Homeowners who sign up for the federal government's mortgage assistance program are getting punished by lower credit scores, MSNBC reported.

Seeking alternatives to mortgage foreclosure, including short sales and loan modifications, will not save your credit scores. Contacting a Miami foreclosure defense attorney is the best strategy to resolving an underwater mortgage or other challenges faced by South Florida homeowners.

For struggling homeowners who are making their payments but facing default, seeking help through President Obama's loan modification program can reduce credit scores by as much as 100 points. Such a hit can take a borrower from a credit score of 700 -- which is considered average -- to below the territory considered sub-prime, which can make it tougher to get a loan and result in higher interest rates and other restrictions.

Housing advocates contend it's unfair and homeowners are often surprised and disheartened to learn that attempting to avoid a foreclosure can still result in significant damage to a credit rating. While it can be less damaging -- a foreclosure will remain on your record for years and can shave 150 points off a credit score, which is graded on a scale from 300 to 850 -- there is little practical difference to the immediate damage of a credit score which drops 100 points, versus 150 points.

And for many borrowers, the damage is already done from missed payments as they struggled with an unaffordable or underwater mortgage for months before seeking professional help.

Continue reading "South Florida homeowners face damaged credit from home loan modification programs" »