Miami Foreclosure Lawyer Blog

After being denied a home-loan modification, our homeowner was hanging on for dear life when Citi Mortgage called last year out of the blue and cut his payment in half as part of a trial modification program. When next he heard, he had been kicked out of the program and had 30 days to come up with $15,000 or risk losing his home.

Last week our foreclosure attorneys in Miami told the first half of this story on our Miami Foreclosure Lawyer Blog. We left off as our homeowner hired a lawyer.

As the illegal and unethical allegations of banks continue to come to light amid criminal investigations in all 50 states, we urge those dealing with foreclosure issues to consult a law firm experienced in mortgage foreclosure defense.

Once the homeowner profiled in the FDL New Desk story was informed his bank had canceled his unsolicited trial modification without warning -- and that he would lose his home if he didn't come up with $15,000 in 30 days -- he finally sought the assistance of a lawyer.

The lawyer sent a letter to Citi demanding to know why he was dropped from modification. A Citi representative then called the homeowner and said "Ok, now you have an attorney ... what do you want?"

In July 2010, the specialist reinstated the modification. However, he wanted a re-documentation of income. Two days later, the homeowner found out the mortgage had been sold and was now being serviced by Saxon Mortgage.

Saxon began chasing him for delinquent payments. Eventually, a voice on the phone says they have details of the 16-month saga and promises everything is fine. Two months later, Saxon drops him from the modification program.

This month, they notified him they would no longer accept his payments and were proceeding to file a notice of default. He should have hired an attorney from the very beginning, which may have saved all the time, money and heartache this case involves.

Continue reading "Foreclosure defense lawyer reinstitutes modification - banks sells loan and new servicer files notice of default" »

The mother of all HAMP Horror Stories as told recently on the FDL News Desk reveals the agony and frustration of dealing with banks that are unwilling, unable, unsure, unscrupulous or just plain unqualified to provide help for Miami homeowners.

As our Miami foreclosure defense lawyers report frequently on our Miami Foreclosure Lawyer Blog, saddling the Home Affordable Modification Program (HAMP) with its clunky name may have foreshadowed the ineffectiveness of the federal program meant to assist homeowners. Far too few homeowners have been helped and the government recently determined the contracts it made banks sign will only permit it to intervene should banks become too overzealous in approving modifications.

The case the News Desk profiled is held out to be the pinnacle of absurdity. But, in fact, it is typical.

The California pool builder purchased a $900,000 home in 2007. When the bubble popped, his income plummeted by 80 percent. He called Citi Mortgage in early 2009 when HAMP was announced. The bank said they wouldn't help him because he hadn't missed any payments and was showing no signs of default.

Months later, the bank called unsolicited and gave him a trial modification with a 2 percent interest rate for 5 years, drastically lowering his payment to $2,170. He was told if he made the payments for 90 days and sent in his application with a qualifying income, he would be given a permanent modification.

When he didn't hear anything during the fourth month, he called and said Citi told him they were backed up. This went on for a year until he got a call saying he was 12 months behind on his mortgage and owed $15,000. After being transferred, another department told him he had been dropped from the program (but not why, which is a violation of HAMP).

The bank gave him 30 days to pay or lose his home.

With each passing week, with each passing month, with each new story, it becomes more and more evident that seeking the advice of a qualified attorney is the best bet when it comes to fighting for your rights. That's what this homeowner did. Check back here next week for the rest of the story.

Continue reading "HAMP nightmare illustrates need for foreclosure defense lawyer in Miami" »

Our Miami foreclosure defense lawyers fight each day for the rights of homeowners who have been ignored, pushed aside, frustrated, mistreated or victimized by their bank or mortgage company.

Whether it's stopping foreclosure in Miami or determining whether strategic default is right for you, banks make matters worse by putting profits before people and by too often acting unethically, if not downright illegally.

As we reported recently on our Miami Foreclosure Lawyer Blog, the Huffington Post recently followed 48 homeowners for a year as they dealt with the agony and made their decisions. Often it was the toughest decision of their lives. As many Miami homeowners deal with the same issues, we urge you to consult an attorney.

These are their stories:

-A 47-year-old homeowner with a struggle mechanics business. Drained his savings staying current on his mortgage. Truck was repossessed when he went to the local vet to have his dog put to sleep. He bought a trailer for his family to live in, unaware he could have remained in his house rent free during foreclosure. He was afraid the bank would move as fast as the company that repossessed his truck.

-A California homeowner felt morally obligated to stay in the $325,000 house, despite seeing a house in the neighborhood on the market for $90,000. After a year spent seeking a modification from their bank, they were informally told by a bank employee to stop paying in order to get the bank to come to the table. The bank then suggested they apply for modification! They did ... and were denied.

-Chicago condo owner was rejected for a short sale after losing his job. Also rejected by the Obama Administration's home loan modification program. He filed for bankruptcy and lived in the unit rent free while paying only the condo association fees.

-A divorcing California resident had a $440,000 residence that dropped to $250,000 in value. Despite having worked as a loan assistant, she found the system impossible to navigate. Now in a $1,500 apartment she has plenty of grocery money and spending money for the little pleasures in life. Her advice to homeowners is to never fear just walking away.

-A 45-year-old Michigan man was struggling with an underwater mortgage but could not get the bank to approve a short sale and was afraid to walk away for fear of ruining his credit score. So far, he has remained in the home.

-A 43-year-old software salesperson from Miami. His $285,000 house was worth $450,000 at the top of the market and is now worth just $150,000. They were able to reduce their payment by $500 a month by refinancing to a 4 percent mortgage.

In some of these cases, homeowners didn't understand their rights -- or that they could remain in their home during the lengthy foreclosure process. In others, knowledge was empowering -- not paying your homeowner's dues can lead to a much faster foreclosure action. In each case, an experienced foreclosure attorney can fight for the rights of homeowners, force banks to treat your fairly, and greatly reduce the stress associated with dealing with a foreclosure, short sale or strategic default.

Continue reading "Facing foreclosure in Miami? Negotiate from Strength! " »

A staggering number of homeowners consider strategic default each month as nearly 1 in 4 owe more on their homes than they are worth, the Huffington Post reports.

Consulting a Miami foreclosure defense attorney is the best course of action when dealing with an underwater mortgage in South Florida, or when considering strategic default or trying to stop foreclosure in Miami.

As we continue to report on our Miami Foreclosure Lawyer Blog, the unfair, unethical and illegal practices of banks are finally coming back to haunt them. Homeowners can negotiate from a position of strength, whether it's seeking to stop foreclosure or a move to reclaim your property or win a monetary settlement.

Dealing with a deficiency judgment is one possible outcome of strategic default. Consulting an experienced real estate lawyer in Miami is the best course of action when considering your options.

Nearly 11 million homeowners are dealing with an upside down mortgage. Still, many resist walking away from a home -- which would be a logical financial decision -- out of fear, shame, courage or morality. If only banks operated under the same ethical code, the real estate market would never have suffered a catastrophic collapse.

The Huffington Post followed 48 people who made that tough decision. After a year, only 8 are still paying their mortgage. While almost all of them took personal responsibility, most were also frustrated by banks that routinely lost paperwork and showed little interest in reaching a compromise.

Some spent years trying to get a decent modification or arrive at a deal for a workable short sale. Most were universally frustrated by banks at every turn. Many banks used the threat of a ruined credit score to bludgeon their so-called "customers" into submission. One homeowner said his credit score dropped less than 100 points -- a hit, to be sure, but still salvageable.

Many have lived in their homes rent free for a year or more while the banks foreclosed. Others, not realizing that was an option, have moved out. Most get gigantic bills in the mail from banks and mortgage companies -- even after being forced to walk away because those same banks refused to meet them in the middle.

More than one pointed out that it's as if the banks still don't get it after all this time. One bank suggested a couple apply for a modification -- they had been doing so for a year. They applied anyway and were rejected.

Continue reading "Strategic default a tough decision for underwater Miami homeowners" »

As South Florida homeowners continue to struggle, the Obama Administration's foreclosure prevention program has been hobbled by lax oversight and a propensity to cooperate with banks rather than stand up for property owners, MSNBC reported.

Our Miami foreclosure defense lawyers understand the legal landscape and can assist homeowners in fighting to prevent foreclosure in Miami and throughout South Florida. As we have reported on our Miami Foreclosure Lawyer Blog, recent legal developments give homeowners a real shot at stopping foreclosure, nullifying a deficiency judgment or even successfully arguing for a monetary settlement or the return of their property.

The federal program has resulted in no penalties against banks or mortgage servicers, despite criminal investigation into the conduct of banks in all 50 states. Despite spending a year issuing warnings about such penalties, the Treasury Department recently said it lacks the power to do so. Meanwhile, it has actually loosened program restrictions in the wake of heavy lobbying from the banking industry.

The program was launched in early 2009, saying it would help 3 to 4 million homeowners. Fewer than 800,000 have received lasting mortgage modifications amid widespread complaints that banks have wrongly rejected homeowners, lost paperwork and ignored program rules. In many cases, homeowners were quickly allowed into the program on a "trial basis" but banks failed to make decisions, missed deadlines or inappropriately rejected applicants.

In some cases, payment reductions during trial modifications were then counted as delinquent and foreclosure proceedings were initiated.

Under contracts drawn up by the government, banks were to receive $1,000 for a completed modification and up to $4,000 if the loans continue to perform. Now the government is claiming those same contracts only permit the government to withhold or "claw back" a payment under very narrow circumstances; specifically when a lender incorrectly grants a modification.

To highlight the absurdity: Banks have not done nearly enough to modify home loans and the government's own contract only permits sanctions for banks that incorrectly grant modifications.

In other words, banks continue to make a mockery of the entire system. You deal with them at your own peril. Consulting an attorney is the best course of action when it comes to fighting for your rights and holding your bank accountable.

Negotiate from Strength.

Continue reading "Federal mortgage modification program little help to Miami homeowners facing foreclosure" »

As our Miami foreclosure attorneys reported recently on our Miami Foreclosure Lawyer Blog, banks are largely responsible for the foreclosure crisis and are being taken to task by foreclosure defense lawyers and criminal investigations in all 50 states.

The tide is turning in favor of homeowners in 2011. Those looking for help stopping foreclosure in Miami can negotiate from a position of strength by contacting an experienced law firm to protect their rights.

By 2006 and 2007, banks knew they were making bad loans. They did so anyway because they were making money. And because they were not going to hold the loans. Instead, they made even more money by packaging and selling them as investments. Ratings agencies looked the other way in granting AAA ratings so get the business. One hand washed the other. Everybody made money. Hundreds of thousands of mortgages were doomed before the ink dried.

Never content with big profits when huge profits were possible, banks then cut corners in keeping track of mortgage documents, many of which were lost or destroyed as the notes were sold and resold on the investment market. Those sales resulted in the servicing rights to the notes, or assignments, moving from one bank to another with each sale.

When the music stopped and the foreclosures started, banks frequently lacked the paperwork to prove ownership. So they created it. Forged documents. Forged signatures. Fake notarization.

Hundreds of thousands of times they simply made it up, according to a report by the Florida Attorney General's Office and other law enforcement agencies. Investigations are now ongoing in all 50 states.

As Daily Finance reported, when the tide turned, banks simply shifted gears and began making money on foreclosures. They made money to foreclosure, not to modify loans, so homeowners found little help whether they were coming or going. Even when modifications made sense, they often were not offered out of shear incompetence; many banks were too short-staffed to assist homeowners.

Anyone who has been to the bank lately and waited in line at the teller knows banks are making money by short-staffing. And when is the last time you saw a loan officer at your local bank?

Incredibly, when foreclosure defense lawyers began fighting back, banks pushed lawmakers to move foreclosures outside the court system as a way of clearing the backlog jamming local dockets. Fortunately, at least in Florida, they have not yet been successful in passing that measure.

As the crisis continues, banks are looking worse and worse. Even when homeowners have tried to satisfy the debt, poor record-keeping on the part of banks often leads to confusion over how much is owed. Multiple banks are trying to foreclose on the same property. Banks that no longer exist -- such as IndyMac or Lehman Brothers -- are listed in court documents.

In contested cases, banks are often backpedaling -- and withdrawing paperwork they falsified and submitted in the first place.

If you are facing foreclosure in South Florida in 2011, consult a Miami real estate law firm today and negotiate from a position of strength.

Continue reading "Banks facing court scrutiny in 2011: Homeowners should seek help to stop foreclosure in Miami" »