Foreclosure defense lawyers stopping foreclosure in South Florida by challenging bank ownership

October 9, 2010

Banks are being forced to slow or halt the foreclosure process as foreclosure defense lawyers in Miami and elsewhere have accused them of cutting corners in the race to foreclose on thousands of properties, the New York Times reports.

As we first reported last month on our Miami Foreclosure Lawyer Blog, GMAC -- the nation's fifth-largest mortgage lender -- was forced to halt foreclosures after an executive essentially admitted that he could not guarantee that the bank even owned the properties in question.
1237498_untitled.jpg

One bank after another -- GMAC, Bank of America, JPMorgan Chase -- have slowed or halted foreclosures in response. Those who have lost their homes to foreclosure to one of these banks may have a claim to get it back. Consulting with a Miami foreclosure defense lawyer is the best option. While you may not get your home back, you certainly may have increased bargaining power to eliminate any deficiency judgments you might otherwise face.

Most of the confusion involves the vast majority of mortgages that were packaged and sold to millions of investors on the secondary market. The banks no longer have the mortgage notes and the reliability of the computerized tracking system is questionable at best.

Simply insisting that a bank prove ownership before proceeding with a foreclosure has permitted foreclosure defense attorneys to halt the process in many cases. Experts say evictions and foreclosure sales are expected to slow dramatically as a result -- even lenders with no problems are expected to approach homeowners in default with more caution and more respect. And in many cases they will be seeking a solution short of eviction and foreclosure.

In many cases, families that bought homes from lenders may be vulnerable to legal action from the former owner. Consulting a Miami real estate lawyer is the best bet to protect your rights and the financial well-being of you and your family.

Thus far, both GMAC and JP Morgan Chase have acknowledged the possibility of legal missteps in the foreclosure process and have suspended foreclosures in the 23 states that require court approval, including Florida.

Defense lawyers say both GMAC and Chase are in trouble because they tried to cut corners and process foreclosures as cheaply as possible.

Meanwhile, this latest example of ineptness on the part of banks will likely lead to and even longer foreclosure process. Last year, the length of time it took to foreclose on a house increased, from 319 to 478 days. In many cases, the homeowner can live in the home during that period rent free, as they work to build the capital necessary to move on with their life and ensure their financial well-being.

If you are facing foreclosure in the Miami area or are considering home-loan modification, short-sale, strategic default or other options in South Florida, contact Barakat, Jacobs & Associates for a confidential appointment to discuss your rights. Call (305) 350-5055.

Foreclosures Slow as Document Flaws Emerge - NYTimes.com.pdf