Miami Foreclosure Lawyer Blog

President Obama's effort to help homeowners avoid foreclosure is not working and the Treasury Department has failed to fix the program, the Associated Press reported. The news comes as government watchdogs report to Congress on the effectiveness of the program.

Our Miami foreclosure defense attorneys continue to report problems with the program. Those seeking to get out of foreclosure or stop foreclosure sales in South Florida need to consult with an experienced attorney about their options. Short-sale, foreclosure, strategic default, loan modifications or government assistance are all options with their own potential drawbacks and benefits.

The inspector general for the government's financial bailout plan said the plan has not "put an appreciable dent in foreclosure filings." He also said the Treasury Department has ignored demands that it set clear goals for the program. Officials are worried the program's failure could contribute to additional foreclosures. That, in turn, will further drive down prices and stall the recovery of the real estate market and the overall economy.

The program's aim is to reduce mortgage payments for struggling homeowners. But statistics show more homeowners have dropped out of the program than have been helped by it. About $248 million has been spent on the program, a small fraction of the $50 billion allotted. About 400,000 homeowners have been assisted while about 530,000 have dropped out of the program.

Critics say the government is allowing mortgage companies too much control over which homeowners will qualify for reductions in the principal balance of their mortgage loans. The program also relies on voluntary participation from mortgage companies. Meanwhile, many mortgage debt collectors make more money by forcing a property into foreclosure than they do by providing help to homeowners.

Continue reading "Government's mortgage loan modification a floundering option for Miami homeowners seeking to stop foreclosure" »

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.

Continue reading "Miami foreclosure defense lawyers can help prevent foreclosure, limit damage to credit scores" »

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" »