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.

Americans credit scores sink to new lows - Business - Personal finance - msnbc.com.pdf

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.

Flood of South Florida foreclosures starting to recede - 06-27-2010 - MiamiHerald.com.pdf

In determining how to avoid foreclosure or stop a foreclosure sale, your best option is to consult with a Miami foreclosure defense lawyer to discuss your rights. In order to properly stop mortgage foreclosure, all options need to be on the table. An experienced real estate attorney will be in the best position to assist in protecting your rights and the future financial well-being of you and your family.

Our Miami Foreclosure Lawyer Blog continues to report problems with such programs. We reported in March that more than half of borrowers who enter mortgage modification are in trouble again within nine months. The unprecedented downturn in the real estate market means 1 in 4 borrowers owe more than their home is worth. This is particularly true in South Florida, which is among the most devastated regions in the nation. The median home values have fallen 28 percent nationwide to $165,100. In Florida, values have fallen by nearly half -- 45.7 percent -- the third-worst in the nation behind Nevada and Arizona.

In many cases, a mortgage modification will not be the best answer. The latest report on Obama's program found that more than one-third of the 1.24 million borrowers who have enrolled in the $75 billion mortgage modification program have dropped out. Last month, 155,000 borrowers left the program, bringing the total to 436,000 since the program began in March 2009. That exceeds the total number who have received modifications and remain current on their loans -- about 340,000 borrowers are still paying on time after a loan modification.

Economists believe the majority of those seeking mortgage modifications will end up in foreclosure, which could slow the broader economic recovery. One of the reasons for the high failure rate is that the administration pressured banks to sign borrowers up without proof of income -- one of the issues that got us in this fix in the first place. When banks later moved to collect such information, many borrowers were disqualified or dropped out of the program.

This is another example of why it is critical to consult an experienced Miami foreclosure attorney for those seeking mortgage foreclosure help or for homeowners trying to stop a foreclosure sale in South Florida. Companies are waiting to go after homeowners who close short sales without a waiver of deficiency.

The New York-based Deficiency Judgment Recovery Network is one such company. Formed in late 2009, the company reports it is attempting to collect from "hundreds, maybe thousands" of Florida homeowners who though completing a short sale would put their housing nightmare behind them. The company is either hired by lenders to collect deficiencies or buys the debt for pennies on the dollar. A deficiency is the difference between a homeowner's mortgage balance and what a home brought through short sale or foreclosure.

"People are under the assumption that the banks are so busy modifying home loans that they don't have the bandwidth or stomach to go after those who are walking away. That's a bad assumption," said Joshua Rand, whose company motto is "We turn shortfalls into windfalls."

Before the downturn in the real estate market, such deficiencies were rare. Now, as many as half of homeowners owe more on their property than it's worth in the current market -- particularly in hard-hit states like California, Florida and Arizona.

As one industry watcher put it: "It's going to be a blood bath."

Florida courts handled 398,825 foreclosures last year -- not including short-sales, which account for more than one-third of all real estate transactions in some areas of South Florida. By the end of this year, Realty Trac predicts a total of 3.5 million more foreclosures nationwide.

In Florida, lenders have up to five years to file a deficiency judgment and up to 20 years to collect.

An experienced Miami foreclosure defense attorney should assist buyers dealing with a short sale or foreclosure. Without a written agreement from your lender, you are exposing yourself to the possibility of being slapped with a huge judgment for outstanding mortgage debt -- the difference between what your house is worth now, and what you owe on the mortgage. Get an experienced Miami real estate attorney and make sure you protect your financial well-being by seeking a waiver of such deficiency judgments. Otherwise, a short sale may help the bank, but won't help you.

"It will be a dramatic problem because the borrowers will not know it's coming," Frank Alexander, a law professor at Emory University in Atlanta, told the Sun-Sentinel. Florida law gives banks five years from the date of a sale to file a deficiency judgment and up to 20 years to collect. Lenders can garnish wages, make claims against a borrower's assets and use other means of collection.

While such deficiency judgments were rare before the housing meltdown, so were foreclosures and short sales and borrowers frequently had few assets worth chasing in an attempt to collect. But, with the advent of strategic default, banks are finding borrowers often walked away with significant assets and the bill collectors are suiting up for action.

A recent survey found more than 4 in 10 homeowners said they would consider walking away from a property with an underwater mortgage -- meaning more is owed on the home than it is worth in the current real estate market.

Other homeowners at high risk of collection action include those who ransacked or damages properties in foreclosure, either out of spite or for a profit.

Mortgage companies typically won't pursue homeowners who negotiate in good faith, or those who default because of job loss, health problems or other unforeseen circumstances, according to the Herald's report. But don't take the lender's word for it; work with a qualified and experienced attorney to get it in writing.

Even if the mortgage companies don't pursue collection action, they can sell the debt to a collection agency at a steep discount, and the debt collectors will come calling with all of the aggressive and disruptive tactics that they employ.