Miami Foreclosure Lawyer Blog

It has been slow coming and our Miami foreclosure defense lawyers have been begging the question for years -- why aren't banks being criminally prosecuted for their illegal acts in foreclosures? Acts that have sent the nation into an economic tailspin, as mortgages are underwater and people are considering walking away from their homes?

It's a valid question now in 2011, years removed from when the bottom fell out of the real estate market and Miami foreclosures began popping up all over the city. Speculative buyers were leaving and the rest of us were left to pick up the pieces. But then, prices of our homes began dropping, unemployment spiked and many people who call Miami home were left trying to fight for their homes after missed mortgage payments.

And the banks have been at the center of all the problems. They were more than happy to hand out billions of dollars in loans and then neatly package them and sell them to investors as securitized mortgages, in many cases even though bank officials knew the loans were bad. But after the bubble burst, they were far from prepared to brace for the wave of foreclosures that would soon hit.

A recent Politico article looks at the fact that state prosecutors are now just beginning to treat foreclosures as crime scenes and not just a civil issue. That's because banks have consistently broken laws in how they handled the foreclosure crisis.

There are examples of workers who were ordered to maliciously falsify foreclosure documentation so they could steal away a person's home. Others deliberately authorized robo-signing practices, where outside companies were signing documents on behalf of bank officials who should have been checking them for accuracy. Bankers have been accused of selling mortgage loans to investors they knew to be bad.

Yet, in the last three years, all we have seen as American citizens is the Federal Reserve lending out $7 trillion of taxpayer money to make sure those same bankers survived the financial crisis -- a process by which they made $13 million -- and the government's weak-willed attempts to put aside money to help homeowners, which has been rarely used by banks, who had no obligation to play ball.

But in recent months, several attorneys general have stepped up and begun bringing criminal charges against bankers, even as the rest of the country's attorneys general -- including Florida's -- have been more than happy to negotiate a weak settlement with banks, allowing them to write a check to pay for these injustices with little help going to the people who were victimized by their actions.

While the Obama administration has pushed these state prosecutors and others to lie down and settle with the banks, some are rejecting that notion and refused to sign up as part of the negotiating. Rather, they are fighting back on behalf of their constituents.

In Massachusetts, a civil lawsuit was filed against five major banks and the Mortgage Electronic Registration Systems alleging foreclosure fraud. The lawsuit alleges mortgage servicers as a matter of practice backdated and falsified documents in order to move foreclosures along more quickly.

In Delaware, Attorney General Beau Biden -- son of Vice President Joseph Biden -- is also suing MERS, Politico reports, alleging unfair and deceptive practices. New York Attorney General Eric Schneiderman has stepped in and stopped a settlement of Countrywide's fraud in selling mortgage-backed securities it knew were bad.

On our Miami Foreclosure Lawyer Blog, we will continue looking at how the actions of these aggressive attorneys general have changed the legal landscape and the relationship between banks and the states where they have caused so much pain and stress.

Continue reading "A Miami Foreclosure Is Not Only a Tragedy, But a Crime Scene: Part 1" »

Much was made in recent years about the millions of dollars dedicated to helping homeowners work their way out of Miami foreclosures because of underwater mortgages that caused many to consider a strategic default.

In order to keep people in their homes, the Obama administration set up funds and breaks to banks to encourage them to modify loans to Miami homeowners, though they missed the mark. While there was a goal of helping many people with these programs, they did little to help.

A recent article by USA Today examines what went wrong and how come the programs touted by the government fell short. Our Miami foreclosure defense lawyers have seen how government-backed Fannie Mae and Freddie Mack knew about robo-signing problems and did little to address it. It has been documented that the government has done nothing to prosecute bank officials who ordered Miami foreclosure to be processed through fraudulent means.

So why would anyone believe that government-backed programs would really be designed to help homeowners? The Fed loaned out trillions of taxpayer dollars to banks to save them from their own greed and ineptness. And banks turned around and made a multi-million dollar profit from the loans!

The only way to keep your home is to fight for it, not rely on the government to help. Our Miami foreclosure defense lawyers are prepared to take on any bank that is attempting to infringe upon your rights as a homeowner.

According to the USA Today article, a couple from Mississippi lost their house to foreclosure at a time when they were being reviewed for a loan modification through a government-backed program. A Realtor knocked on their door one day and told them to leave.

The Obama administration's foreclosure prevention programs were supposed to help between 7 and 9 million Americans, but so far only helped about 2 million and many of those aren't out of danger yet. The couple is among a rising number of Americans who have felt the government has failed them and their banks are doing nothing to help.

As of Nov. 30, according to the article, only $2.8 billion of the $46 billion that was designed to help foreclosures has been spent. More has been dedicated, but the Congressional Budget Office estimates only $13 billion ultimately will be paid out.

Since 2009, 2.5 million homes have been lost to foreclosure and another 4 million are in the foreclosure process or on the brink. Home prices are falling everywhere. Experts say the programs had severe design flaws and didn't provide enough incentive for banks and mortgage servicers to stop a foreclosure. In many cases, lenders and their contractors make more money off a foreclosure than modifying a loan, even if government programs are utilized.

Even lawmakers admit that more was done by the government to help the banks than to help homeowners. Trillions in loans were doled out to save them, even to foreign banks with interests in the United States, but little has helped homeowners.

Seeking a loan modification is fine, but it's rare that the banks will agree. They simply don't make money from it. They would rather foreclose in Miami than attempt to work with a homeowner.

That's why fighting back and looking for problems with the bank's paperwork, evidence of robo-signing or other fraudulent practices and problems may be the best option. Don't rely on the government to help. Hire an experienced law firm and negotiate from strength!

Continue reading "Why Did Government Aid Programs Miss the Mark on Miami Foreclosures?" »

The number of underwater mortgages in Florida has reached a crisis level. One report indicates 45 percent are in that category, which has led to strategic defaults, short sales and foreclosures in Miami.

Homeowners simply cannot be asked to continue making payments on houses that aren't worth the price. An underwater loan is one where what the homeowner owes is more than the value of the house. Florida has been hit hard because of plummeting housing prices, based largely on the glut of foreclosures throughout South Florida.

In many cases, a person may consider a strategic default, which means simply walking away from the house -- mailing in the keys, in an effort to save face. This is a decision that must be made with great thought and planning and advice from an experienced Miami foreclosure defense lawyer.

The reason for this is that banks can attempt to come after the homeowner for the difference, called a deficiency judgment. While banks won't say which homeowners they attempt this on and which they don't, some experts believe people who have walked away from investment homes or whom they believe could actually afford the house are targets.

If a judgment is levied against the homeowner, they would be on the hook for the difference between the loan amount owed and what the house sold for at auction after foreclosure.

Another option is a short sale. However, a short sale requires help from the banks, which may not be willing to work with a homeowner. In a short sale, the homeowner finds a buyer for the house and then brings the amount that person would be willing to pay to the bank for negotiation. The goal is to get the bank to agree to that purchase price and sale -- and in the process relieve the homeowner of the remaining debt.

In either case, there is a risk involved and in both cases, it's almost guaranteed that the motivation for the move is an underwater mortgage. If successful, however, these moves can pay off greatly, as getting out from an albatross of a home can be important.

According to creditsesame.com, 45.1 percent of homes in Florida are underwater in their mortgage and another 4.2 percent are near underwater, meaning they are in negative equity or within 5 percent of being in a negative equity position.

That means that 1,970,756 homes are underwater and another 182,389 are classified as near underwater. That puts Florida as one of only three states where more than 45 percent of homes are underwater.

In Nevada, 60.4 percent of homes are underwater and in Arizona, 48.7 percent hit the mark, according to creditsesame. But Florida has far more homes underwater than either of those states. In fact, Florida's underwater homes equal twice that of both states combined.

Only California, with 2.06 million homes underwater, has more than Florida nationwide. Florida is clearly in a different position that any other state because there are so many vacation and speculative homes here. This has put our state in a perilous position.

And this has not only affected the homeowners whose houses have gone into foreclosure, but also those that haven't. Foreclosures affect everyone, even those making monthly mortgage payments.

Continue reading "More Than 45 Percent of Florida Loans Underwater, Causing Massive Foreclosures in Miami" »

The Florida Supreme Court has agreed to rule on a case out of Greenacres where allegedly fraudulent bank documents were used in support of a foreclosure, The Palm Beach Post reports.

This case could have major implications on the cases of foreclosures in Miami and statewide. The use of robo-signing, fraudulent documents and other unlawful practices by banks has led to the biggest real estate collapse in decades. House values have plummeted, causing people's mortgages to be underwater and leading to a foreclosure crisis.

Our Miami foreclosure defense lawyers recognize that the Supreme Court taking up this case could have a major impact on all foreclosure cases throughout the state. The Justices agreed that the case highlights the "mortgage foreclosure crisis throughout the state."

While the case in question has already been settled, four of the seven justices agreed that they should look at the legal question that was posed, saying that it is bigger than this one case and could impact all others. At issue is whether a bank can still be held accountable for using robo-signed and fraudulent documents if officials decide to dismiss the foreclosure case after it has been challenged.

In this case, the bank filed to foreclose on a man's house in 2008, alleging that it owned the mortgage via assignment from another lender. After the man's foreclosure defense attorney challenged the backdated assignment, the bank voluntarily dropped the case and settled with the homeowner.

The man appealed, asking that the dismissal be reversed and while lower courts sided with the bank on that issue, an appeals court asked the Supreme Court to take a look. The appeals court decided that the issue is "a question of great public importance as many, many mortgage foreclosures appear tainted with suspect documents."

The Office of State Courts Administrator reported that from July 1, 2010 to July 1, 2011, more than 104,000 foreclosure cases were dismissed. Many of these cases were likely dismissed because banks didn't have the proper documentation, couldn't prove who owned the note or used fraudulent documents to try to prove the facts.

This is big news for homeowners trapped in foreclosure because if the state's high court rules in favor of the homeowner, that means that other homeowners throughout the state may be in a better position to fight back against banks who have tried to steal their homes via bad documents.

It has been reported that bank officials in some situations literally cut and pasted figures and signatures onto documents they used in support of foreclosures in Miami and elsewhere when they didn't have the facts to prove their case. They violated homeowners' rights in many cases simply because they couldn't handle the glut of foreclosures that hit the court system so rapidly.

Instead of handling cases legally and upholding homeowners' rights, banks took the low road and used slimy tactics in order to try to take away people's homes. Even in cases where homeowners tried to work with them through loan modification programs or a short sale, banks would go behind their backs and attempt to foreclose.

Homeowners statewide -- whether in foreclosure right now or not -- should be thankful that the justices will look at this case. Our Miami foreclosure defense lawyers hope that the court holds banks accountable and doesn't let them off the hook and allow them to ruin people's lives without due process or a shred of honesty and decency.

Continue reading "Florida Supreme Court to Consider Miami Foreclosure Case Rife With Fraudulent Documents" »

It's a valid question that many Americans have asked in recent years, but that has gone largely unanswered -- why haven't officials from large banks who ordered robo-signing, fraudulent and false documents to be created and other illegal activities not faced prosecution?

Their actions have led to millions of foreclosures nationwide, including foreclosures in Miami and other parts of South Florida. Home values have plummeted and mortgages have fallen to unprecedented "underwater" levels, leading some homeowners to consider what's known as "strategic default." And yet bank officials at the top continue to enjoy multi-million dollar bonuses, raises and other perks.

As our Miami Foreclosure Lawyer Blog has reported, some prosecutors have taken some steps to criminally charge people who were involved in the process. But more needs to be done, as our Miami foreclosure defense lawyers pointed out here.

The bottom line is it has been about four years since the bubble began bursting on the real estate market in this country. A lot of the activity happened in Miami and throughout Florida as well as Nevada and California -- places were people speculated on homes, but it has spread nationwide.

And in that time frame, little has been done to punish the people who caused the mess. A recent article published in The Nation begs the same question -- why hasn't more been done?

By now, there is plenty of evidence that bank officials ordered fraudulent activity, including fabricating documents to support a foreclosure on people's houses. But, still, little has been done to prosecute these criminals.

As the article suggests, banks officials pushed bad loans and then used unethical and illegal foreclosure practices after the fact. No Wall Street firm or high-ranking bank official has faced criminal consequences.

The article is critical of the Obama Administration for not doing anything to punish the banks who created the mess in the first place. Rather, the Fed pushed more than 7 trillion dollars to save the banks and created meager programs for homeowners that were rarely used.

The administration is also putting pressure on attorneys general, including those in New York, Delaware, Nevada and elsewhere, who haven't joined the others who are going to agree to let banks walk away from civil lawsuits filed by states for a meager $20 billion. The rogue AGs smartly haven't agreed to such a small sum of money in exchange for letting banks off the hook.

A recent 60 Minutes piece on the topic, in part, included comments from a senior Countrywide executive, who said the fraud was rampant and systematic. Not only a few people, but branches and regions of banks were doing it. The executive, whom our blog has written about, recalled the story about finding documents in a recycling bin in a Boston-area branch that had been literally cut and pasted together to use in foreclosure cases.

Even when Citigroup executives found that 60 percent of the mortgages they were buying from Countrywide were fraudulent and alerted higher-ups, they ignored it and told investors and the public they weren't.

60 Minutes pressed a Justice Department official about why more bank officials and executives haven't been prosecuted and got a typical answer that there are investigations ongoing. It's no wonder the American public has lost confidence in government because of situations like these.

It's obvious that people struggling with a Miami foreclosure can't rely on the government for help. If you are in such a position, an experienced Miami foreclosure defense lawyer can help dig you out of the hole you're in by fighting back against banks.

Continue reading "Why Isn't Government Prosecuting Big Bank Officials For Miami Mortgage Fraud?" »

A recent article out of Las Vegas reports that grand jury transcripts in the criminal cases of several defendants charged with robo-signing and other mortgage fraud-related allegations reveal the massive problem happening in that state and nationwide. Those struggling with foreclosure in Miami cannot afford to go it alone.

The alleged criminal acts in Nevada mirror the fraud that was going on with mortgage servicers, bank officials and real estate officials dealing with Miami foreclosures as well.

Our Miami foreclosure defense lawyers have worked on behalf of homeowners in Miami and throughout South Florida, fighting back against lenders who used fraudulent and unlawful tactics to take away people's homes.

Sadly, while foreclosure defense lawyers have been pointing out the fraudulent behavior of banks in foreclosure cases for years, prosecutors have taken their time actually bringing criminal charges against those involved. There are obvious signs of fraud going on still today and certainly during the last four years and yet little has been done.

The Las Vegas' Attorney General recently brought charges against two mortgage servicers. They are accused of running a foreclosure scam by telling their employees to forge signatures in violation of the law.

Employees testified before the grand jury they followed orders because they needed the work to pay for school or family expenses. One notary came to a deal with the prosecution and was found dead on the date of her sentencing. She testified she notarized 25,000 false documents on notices of default for Bank of America, Washington Mutual, Fannie Mae and Freddie Mac.

An investigator testified that of tens of thousands of documents that the company produced for banks, a majority seemed suspicious. One homeowner testified that her house was sold without her knowledge.

She had gotten behind on payments, but was working with Bank of America on a short sale. She said she had no idea a notice of default had been recorded.

When she returned home one day, she found the house had been sold without her knowledge through a trustee sale. Many of her things, including medical records, personal information, furniture, collectibles and other items were still inside. Many of these things were stolen by the time she was able to get into the house.

These injustices should not be tolerated. And yet the government has allowed it to go on for far too long. Stories of people being kicked out of their houses without their knowledge is a travesty and yet it happens every day.

Miami homeowners are blindsided by shady dealings by the banks and the companies they hire to do this dirty work. And while robo-signing procedures -- where mortgage servicers sign documents that are false or they sign for a person who never confirmed the documents are accurate -- are still going on today, even after they have been found to be illegal. The whole reason banks cut back on filing foreclosures in the last year was because of robo-signing and yet it still happens.

Top bank officials who allowed this to happen have, so far, gotten off free, without consequence. In fact, many have enjoyed seven-figure bonuses. It's criminal and it needs to end. Let's hope our attorney general makes this more of a priority than it has been thus far.

In the meantime, hire an attorney and negotiate from strength.

Continue reading "Miami Foreclosure Fraud Revealed in Grand Jury Testimony" »

For the second time in a little over six months, Miami foreclosure defense attorney Bruce Jacobs has been asked to lead a seminar to help other lawyers better defend clients against banks seeking to take their home through foreclosure, despite homes being under water and in bad shape.

In July, Mr. Jacobs taught dozens of lawyers at a conference in Coral Gables how to defend foreclosures in Miami and elsewhere.

Some people believe that if a homeowner misses a mortgage payment, the game is over. Sadly, some lawyers aren't well-equipped to go beyond the basics of trying to convince a bank to help the homeowner get a loan modification.

Mr. Jacobs has been asked by Law Review Cle, a nationally recognized training site for lawyers nationwide, to conduct a half-day seminar Feb. 28, 2012, in Fort Lauderdale.

Every lawyer in Florida and nationwide is required to take classes to keep up with the latest trends, the newest law changes, case law and tactics. Given that Mr. Jacobs is a member of Max Gardner's Army, a nationwide group of lawyers who share tactics in real time to help homeowners defend themselves from foreclosure, he is in a position to help others.

Defending a home from foreclosure is no easy task. Banks are relentless and have in the past used unethical and sometimes illegal tactics to try to process paperwork in a foreclosure case. Only a trained lawyer can spot these discrepancies and use them against the banks in a foreclosure case.

As we have written on our blog for months, banks have used robo-signing, filed fraudulent paperwork, used mortgage servicers who have filed unlawful documents and now follow laws in their pursuit of putting people on the street.

Mr. Jacobs will discuss these issues among others with lawyers at the upcoming seminar:

• Up-to-date statistics on foreclosures


• Why banks aren't willing to modify loans


• Issues with mortgage securiitization and how it affects the foreclosure


• Federal programs and agreements with banks that can help borrowers


• Litigation strategies and tactics to help homeowners


• Federal lending laws and case law that affect foreclosures


• Alternatives to foreclosure


• The relationship between bankruptcy and foreclosure


• Ethics in dealing with foreclosures and communication with the client

Mr. Jacobs is excited to share information than can help homeowners get the best possible legal representation in their time of need. As mentioned earlier, while obtaining a loan modification could be helpful, it's not necessarily likely. Banks are less likely to agree to a loan modification and would rather just take the home.

That's why some foreclosure defense lawyers are letting their clients down. A skilled Miami foreclosure defense lawyer will not only look at the alternatives, but also look for holes in the bank's documentation and other issues that can be used against them.

A person's home is a big deal. It must be preserved. If a family is kicked to the curb, they can be affected emotionally and financially. They deserve the best advice they can get. Mr. Jacobs hopes to enable and train more lawyers to go out and fight back against banks.

Continue reading "Miami Foreclosure Defense Attorney Bruce Jacobs to Lead Seminar to Help Other Lawyers" »

The New York Times recently wrote about a former South Florida banker who acknowledges that banks' loose credit is the reason that the real estate market and financial system in the United States collapsed. He acknowledges that because of his actions -- and those like him -- foreclosures in Miami and nationwide went viral, leading to strategic defaults and under water mortgages.

It's encouraging that at least some people are finally acknowledging what the rest of the country has believed for some time. Sadly, it's too little too late. The banks got more than $7 trillion in secret loans from the Fed, made billions from those loans and still are going after people's homes.

The best way to fight the banks is to fight a foreclosure with an experienced and aggressive Miami foreclosure defense lawyer. The banks have made many mistakes and they should pay for it. Over are the days that they have so much financial strength they can bully borrowers.

Many people sought to buy homes, doing business as usual, in the late 2000s. Sadly, though, many people were buying second homes that they hoped to flip and make a profit from, so banks, with their loose credit, were lending out billions of dollars to people in states outside Florida. For a while, it worked and they were able to make a quick buck.

But when 2007 came and the bubble had nearly burst, many people were stuck with a second house that had lost value. Then, things spiraled out of control. People began defaulting in droves and prices began plummeting.

Banks watched this happen before their eyes. What once was a time of joy with bankers lending out money and just waiting for the big benefits turned into a nightmare. Ultimately, it has cost millions of people their jobs and sent the nation's and world's economies into a tail spin.

According to the article, former Chase Home Finance vice president James Theckston told the newspaper that in 2007, his team wrote $2 billion in mortgages, sometimes without documentation. He said people without jobs, income or assets could get a loan just based on a good credit score.

He said that bank officials enabled the problems by telling bankers to loan out the money, even when it didn't make sense. Senior bankers turned a blind eye, especially because mortgages were securitized and sold to investment groups.

The banker said that some executives got a commission that was higher from subprime loans, so they would entice mainly black and Latino borrowers, some who weren't fluent in English and who weren't savvy, to get a loan. When the newspaper contacted Chase, it's spokesmen acknowledged the subprime and no-document mortgages and says it doesn't do that anymore. It points out that it has offered four times as many loan modifications than foreclosures.

The article goes on to report on the Fed's $7.8 trillion in secret loans to banks and how the loans helped keep our country's financial system afloat, it also rewarded the bad behavior of bankers and has left homeowners helplessly toiling in foreclosure. Many of the least sophisticated borrowers in America have been hurt especially hard.

Continue reading "Former South Florida Banker Tells How Banks Are to Blame for Miami Foreclosure Mess" »

A story out of Atlanta shows that sometimes good things can happen to people who are struggling with foreclosure. This situation could potentially happen to anyone, including those undergoing a Miami foreclosure, but it doesn't happen often. Those fighting foreclosure or dealing with a home loan modification, short sale or strategic default, are always best served by seeking qualified legal help.

When police and movers hired by a bank arrived to the house of Vinia Hall and took a look at the frail 103-year-old woman and her 83-year-old daughter, they couldn't do it. They turned around and left.

After getting pressure from community activists and the news media, JPMorgan Chase, which is administering a second loan on the house that was taken out in 2002, agreed to work out an arrangement to keep them in the house.

This is great news for these women, but this is far from a common situation. Many families throughout Miami and nationwide have seen the same movers and same law enforcement personnel not turn away and proceed with eviction procedures. Miami foreclosure defense lawyers know that this can be a devastating situation in a person's life.

Parents are frustrated and worried, and the children in turn become emotionally drained because they expect their parents to be in control. And yet, they may find themselves helpless and homeless. It has happened to millions of people nationwide in the last five years.

That's why our lawyers believe that fighting back is the best option if you are struggling with foreclosure in Miami. It's obvious the banks are heartless. They paid to evict a 103-year-old woman. If not for the movers and law enforcement officers, the homeowners likely would have been homeless by now, right in the thick of winter.

Court records showed that in 2002, the woman's grandson got a second mortgage on the house from Deutsche Bank National Trust, a loan that was taken over by JPMorgan Chase. The grandson is listed as the home's owner, though the grandmother has lived there for decades. Seven years after the loan was made, the bank foreclosed.

The grandson fought the foreclosure while the women lived in the home. Politicians and community activists fought beside the women and contacted Chase on their behalf.

It's obvious from this story that if you are unsuccessful in fighting a foreclosure, it takes a lot of people by your side and some generous police and movers to ensure you don't get kicked to the curb. And if you're not 103, that may not happen.

Fighting a foreclosure is complex and it isn't easy, but it can be done. Some common ways to fight back against lenders in a Miami foreclosure is to look at the documents.

News reports have shown that banks are still using robo-signed documents, meaning contracted employees who know nothing about a person's case are signing documents for bank officials with no knowledge of whether the paperwork is accurate. Banks have fabricated documents to try to prove they should be able to foreclose on a house, even when they have little proof. They also often can't prove who owns the loan, another necessary step to foreclose.

Continue reading "103-Year-Old Woman Saved From Foreclosure Eviction By Cops, Movers" »

Miami foreclosure defense attorney Bruce Jacobs has again been asked to lead training classes for lawyers who are helping homeowners defend against foreclosures.

In February, Mr. Jacobs will teach dozens of lawyers the tactics to use to defeat banks and help people keep their home despite facing a foreclosure in Miami.

Advocacy group LawReviewCle is a nationally recognized program that provides continuing legal education for lawyers.

According to Florida Bar rules, attorneys must take classes in their field of practice several times a year to stay up-to-date on new trends, changes in law or in the rules of procedure, and other updates to their practice. On Feb. 28, 2012, in Fort Lauderdale, Mr. Jacobs will be leading a session for other lawyers.

In fact, Mr. Jacobs is the only speaker at this half-day conference. He will teach lawyers from Florida and other states about the foreclosure process and what a good lawyer can do to help his or her clients who are facing foreclosure and the prospect of losing their house.

These are the key topics that will be discussed:

• Statistics on foreclosures


• Why lenders aren't willing to modify a homeowner's loan


• Mortgage security and how that affects a foreclosure


• Federal programs and other agreements that may help a homeowner


• Litigation strategies to defend a foreclosure action


• Federal lending laws and foreclosure case laws


• Alternatives to foreclosures


• The advantage and disadvantage of bankruptcy as it relates to foreclosure


• Ethical rules and communication with the client

Mr. Jacobs is a former prosecutor in Miami, handling complex cases such as violent crimes and economic crimes, among others. He worked at Camner, Lipsitz and Poller, P.A. in Coral Gables handling commercial disputes and representing large lenders in foreclosure cases.

After having handled more than 50 trials and gaining an insight into the lending industry, Mr. Jacobs has used that experience to help homeowners who are being victimized by the system. He has used that knowledge to help clients and now will be spreading that knowledge even farther by teaching other lawyers who can spread the word.

Mr. Jacobs is a member of Max Gardner's Army, a group of attorneys nationwide that shares cutting-edge tactics and information about foreclosures in real time. The lawyers discuss foreclosure tactics to help their clients avoid foreclosure, defend foreclosure and seek alternatives to foreclosure.

The continuing legal education class will be designed to allow lawyers to ask questions of Mr. Jacobs so he can share the information he has learned from years of experience of being a leading foreclosure defense lawyer in Miami.

The banks are always using new tactics and sometimes old tactics and, as we have reported on our Miami Foreclosure Lawyer Blog, some tactics that are unethical and illegal. It is important for foreclosure defense lawyers to know what the banks will be trying to do and how to use their actions against them.

Continue reading "Miami Foreclosure Lawyer Asked Again to Teach Attorneys About Foreclosure Defense" »

Homeowners battling foreclosure in Miami know how tough the system can be. Mortgage servicers and real estate investors continue to face civil and criminal prosecution. But as a recent column by new deal 2.0, a news project of the Franklin and Eleanor Roosevelt Institute in New York, opines that mortgage servicers are getting away with the perfect crime because years after warnings were put out about fraud in the country's banking system, there have been relatively few criminal prosecutions.

This is a shame and a failure by our criminal justice system. While Miami foreclosure defense lawyers understand that it takes quite a bit of time and effort to build a criminal case against bank officials, mortgage servicers and other real estate professionals, we also believe that the longer banks are able to conduct Miami foreclosures unlawfully, the more victims there are.

The columnist agrees. In the piece he writes that in 2004, FBI agents warned Congress that there was an "epidemic" of mortgage fraud. Within two years, Fannie Mae endured an accounting scandal.

What happened next was criminal, yet little has been done about it. Wall Street CEOs began signing documents they didn't know where accurate or knew were inaccurate, The New York Fed began blindly lending money despite conflicts of interest. Balance sheets of banks were manipulated to hide the problems they were having as foreclosures ruled the news.

Despite all the problems, there were few arrests being made. Most of the prosecutions related to the problems with foreclosure and banks have been minor contractors or low-level bank employees, who were likely just following orders from above. There have been civil suits, and states are negotiating a settlement with banks for foreclosure fraud, but that will result in payoffs and not prison time.

As the column goes on to say, the problem with this is that when all of the illegal activity continues to go unpunished, it continues to happen. There have been recent reports of foreclosure defense attorneys uncovering robo-signed documents to this day, despite banks being busted for this more than a year ago.

A New Orleans bankruptcy judge recently said in court that Lender Processing Services, a company that handles 80 percent of foreclosures for big banks, has been programming fraud into the software used to process foreclosures. The judge said the company uses highly automated software that applies payments "contrary to the terms of the notes and mortgages."

The article goes on to say that mortgage loan notes are supposed to be paid first to interest, then principal and then other fees. Investors get paid first and servicers, who collect fees for themselves, get paid when they collect late fees or if the house goes into foreclosure. What the columnist reports is that they are using software to prioritize their fees above the interest and principal that is getting paid to investors.

Additionally, if homeowners are late one month with a payment, it's supposed to be a one-time miss. The programing, however, can lead to a glut of fees that can lead to homeowners missing payments again and again, causing them to spiral into foreclosure.

If our prosecutors aren't going to help, then the only way to fight back on your Miami foreclosure is to use the banks' mistakes and unlawful activity against them. Consult with a Miami foreclosure defense lawyer today to ensure your rights are upheld.

Continue reading "Banks May Still Be Getting Away With Crimes in Miami Foreclosure Cases" »

If it wasn't already abundantly clear, the major banks in this country and the government have a special bond. Government officials have done much more to help banks survive than the very public who voted them into office. Struggling homeowners in Miami who are fighting foreclosure need to take note.

As Miami foreclosure defense lawyers reported in August as part of a three-part series, banks got $1.2 trillion in loans that were never released to the public.

Bloomberg, which first reported the secret loans, recently detailed the fact that banks made $13 billion on the loans that the public didn't know about. The Federal Reserve never disclosed that it loaned out the astronomical amount of money or that the banks were in such bad shape that they had no choice but to make the loans.

At a time when so many people are struggling with foreclosure in Miami, banks are still making money hand over fist. First, they used robo-signing tactics and filed fraudulent paperwork. Then, the government loaned $1.2 trillion in taxpayer dollars to the very banks that have tried -- and in many instances were quite successful -- in taking away people's homes.

At a time when the foreclosure crisis was as noticeable as ever in the United States, the Fed was doling out billions in cash -- enough to buy out every foreclosed home in America. As Bloomberg points out, the country's central bank says there were no losses, but it allowed the banks to grow stronger and more powerful at a time when homeowners are growing less powerful.

But the average homeowner doesn't have to cower and lose his or her home without a fight. A strong defense to a Miami foreclosure is as good as a bank's offense. Being able to show that banks created documents to support a foreclosure, used robo-signing procedures or aren't able to show who actually owns the house are all strong defenses in a foreclosure.

Bloomberg previously reported that banks got $1.2 trillion in loans and they netted $13 billion from it. But most recently, the news service reported that between guarantees and lending limits, the Fed committed $7.77 trillion as of March 2009, more than half the value of everything produced in the country that year.

While there was public outcry about TARP funds totaling $700 billion to product bailouts to big companies (whose CEOs got major bonuses), the public didn't know about these loans.

Six banks -- Bank of America, JPMorgan, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley -- received $160 billion in TARP funds and another $460 billion from the Fed. The 2010 Dodd-Frank law mandated that certain details of Fed borrowing be released to the public, which should stop these secretive practices in the future.

While the government comes up with failed foreclosure programs in the future, Miami homeowners should be wary of relying on it to help. These stories should serve as a warning and a call to action. Fighting back with a Miami foreclosure defense lawyer is the only way to save your home from greedy banks.

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