Miami Foreclosure Lawyer Blog

Our Miami foreclosure lawyers have been reporting on the newest issue to hound banks involved in foreclosures on underwater mortgages -- force-placed insurance.

On theMiami Foreclosure Lawyer Blog, we have written about how New York authorities have begun looking into whether banks owned or were connected to insurance companies they paid to write policies for distressed homeowners.

Now, American Banker suggests the force-placed issue may be going beyond just banks and into auto insurance and post-foreclosure insurance issues. Our lawyers believe that this issue is just another indicator of the problems that bank officials have created with their greed. Whether it be offering sub-prime loans to minority borrowers or using robo-signed documents in support of Miami foreclosures, banks have shown their lack of concern for following the law and upholding lenders' rights.

With subpoenas being sent out, now American Banker believes that the New York investigation is broader than just mortgage-based companies. A list of companies subpoenaed by the government include mortgage servicers, insurers and insurance agents.

But the list indicates that bank subsidiaries that handle auto insurance and REO insurance were also on the list of subpoenas. REO insurance is used for foreclosed homes and billed to mortgage bond investors.

Some officials estimate that insurance companies receive billions each year from these forms of insurance and that banks get commissions on the policies they write. So, this brings up the question about whether banks that have ties to, or even own, these insurance companies were forcing insurance when they shouldn't have been doing so.

Force-placed insurance is typically used when distressed homeowners fail to keep coverage on their homes and is designed to be protection for investors. The mortgage servicer will buy coverage for them.

Critics believe that while force-placed insurance alone isn't controversial, the allegation that banks are demanding that insurers share their premium revenues since this form of insurance is as much as 10 times as expensive as normal forms of insurance because of the higher risk.

The bottom line for homeowners caught in Miami foreclosures is that it's possible they were forced into this insurance and a greater portion of their monthly mortgage payment could be going to this more expensive insurance, which is cutting down on their equity. And if it can be proven that the bank and servicer had ties to the insurance company providing the insurance, it may be possible to show that a homeowners' rights have been violated.

This is another area where banks are using their weight to try to maximize profits while throwing the homeowner under the bus. Whether it was long-standing robo-signing practices where documents were being signed by people who had no authority to do so or banks were doctoring paperwork in support of foreclosures, these bankers have shown that the law, ethics and other considerations won't get in the way of them making money and following the company rules.

But these violations can support a homeowner keeping their home if it's in the middle of a foreclosure. Homeowners have rights and consumer protection laws are designed to ensure companies aren't allowed to mistreat people.

Continue reading "Force-Placed Insurance May Not Just Affect Banks Involved in Miami Foreclosures" »

Foreclosures have caused people to consider strategic default, short sales and other less-than-ideal situations to cure their underwater mortgage.

Now, it appears cities and counties are considering suing the banks that created the problem in the first place. At least that's one option the city of Detroit is considering, according to The Michigan Citizen.

Our Miami foreclosure defense lawyers believe that the problem with foreclosure in Miami and elsewhere has been exacerbated by the unlawful activities of banks. Many foreclosures could have been prevented had bank officials not used robo-signing practices and created false documents to support foreclosures.

Had they actually worked with homeowners in using government-backed programs, rather than try to unlawfully take away people's homes, communities might be in a different position than they are today. Many Florida communities, which base their budgets on property taxes, have seen those values fall drastically.

According to the news article, Michigan officials are considering imposing an emergency manager to combat its mounting budget deficit. But some believe that suing the banks based on fraudulent lending practices could be an option.

This goes to the issue of the settlement that the majority of state attorneys general are working on with banks. Michigan is one of the states currently negotiating with banks to come to a settlement, which would preclude legal action. It's unclear whether individual cities and counties would still be able to sue if the state is part of the settlement.

According to the news article, this wouldn't be the first time a city sues the banks. Others have seen the unlawful activities of banks and how that has affected their communities. Some have tried to show that the reason communities have been devastated with budget deficits is because of the bank-led home foreclosures and the unlawful practices used to accomplish them.

A recent court decision as well as a Federal Reserve Board review may actually favor communities attempting to bring these lawsuits. Evidence has been mounting for years that shows bank fraud and abuse has led to a major hit to community tax bases.

Baltimore and Cleveland have both sued banks. Baltimore officials claimed that Wells Fargo officials pushed high-interest mortgages on black residents. Cleveland officials sued 21 banking institutions hoping to recover millions of lost taxes from properties that have taken a hit in value after thousands of vacant homes have been demolished.

News has continued to pour out suggesting that bank officials were given bonuses and incentives to push high-interest sub-prime loans onto, in particular, minority borrowers. For bank officials, the higher interest loans looked better for investors. For lenders, these loans have caused them undue financial hardship at a time when they needed it least.

Some analysts believe that the Federal Reserve Board rulings as well as guidance from the Department of Justice may be able to help cities and counties take steps to sue the banks for their misdeeds.

Continue reading "Should Cities Be Suing Banks Because of Miami Foreclosures?" »

USA Today predicts that it could take the country several decades to clear out the backlog of foreclosure cases that have plagued our real estate market nationwide.

Miami foreclosure defense attorneys reported in October that there is also a "shadow" market of homes that are either still in some form of foreclosure or have already gone through foreclosure but are being held off the market by banks that now own them. The official number of homes for sale nationwide is 3.5 million, but adding in the shadow market, the number may jump to 7.5 million.

Experts believe that it will be a long time before housing prices return to the levels that much of the country saw in 2005 and 2006, especially given the large inventory of homes that are available for purchase.

What this means for those fighting their foreclosure in Miami is that they are among many, many Americans who are sitting in the same boat.

One reason for the delay in these cases were the banks themselves. Initially, they filed millions of foreclosures in order to try to take homes where people may have missed one or two payments, rather than attempt to work with them. The problem was they were so unprepared to handle that many cases.

So, they started hiring companies to sign the documents that should have been signed by a bank official who had reviewed the case. Instead, an unqualified person at a different company would sign and notarize documents that they couldn't say were 100 percent accurate. This practice, known as robo-signing, was rampant and has still been documented to this day.

Most banks took about a year off from filing foreclosures as they reviewed cases and attempted to streamline their procedures. But they did nothing to address the issues of the past, such as homeowners who lost their houses because improper documents were signed and incorrect numbers were used in support of a foreclosure.

In other cases, banks couldn't even prove who owned the mortgage, as they are typically sold in bundles to investors. Without knowing who is foreclosing, a foreclosure shouldn't be granted.

According to the USA Today article, the backlog of cases suggests that in some markets, the recovery time will be longer than in others. In New York and New Jersey, new court rules may make lenders take 50 years at the current pace to clear out the backlog. In Florida, the prediction is about eight years.

In states where there is no judicial review, the process is moving much quicker. Many states expect to clear out their backlog of cases in only two to four years. But even many small states, such as Connecticut, Vermont, Maine and North Dakota may be struggling for a decade or more to move cases out of their systems.

For the real estate market to recover, it is certainly good that Florida's predicted time schedule is slightly lower than that of other states. But Miami foreclosure defense lawyers hope that courts don't weigh the challenge of moving these quicker more heavily than ensuring homeowners' rights are upheld.

Continue reading "Foreclosures in Miami, Nationwide Could Take Decades To Work Through" »

A recent article in The New York Times looks at the effects of foreclosure that don't necessarily get reported in the mainstream media.

Among them is that people's health is taking a toll -- with missed doctors' appointments and unfilled prescriptions -- as their house is going through foreclosure. The article reports that 78,000 homes were issued first-time default notices in August, a 33 percent hike from the month before.

Dealing with a Miami foreclosure can be extremely stressful, frustrating and even have ill effects on a person's physical health. But the worst thing you can do is lie down and let the banking industry treat you unfairly.

Instead, hire an experienced and aggressive Miami foreclosure defense lawyer who is on your side. An attorney can point out the possible problems with robo-signing that occurred in your case, the misplaced documents, the improper detailing of who actually owns the note on your house and other details that financial institutions may have taken for granted.

Banks are now charging their customers more and more fees to make up for all the money they've lost as a result of the sub-prime mortgage disaster that has had negatively affected our country's economy and peoples' lives.

According to the Times article, a 2008 survey in Philadelphia found that of 250 people in foreclosure, 32 percent reported missing doctors' appointments. Forty eight percent said they let crucial prescriptions go unfilled, both higher percentages than their neighbors.

More than one in three homeowners facing foreclosure had symptoms of major depression. Suicide attempts in high-foreclosure neighborhoods were also up. Anxiety-related emergency room visits are also on the rise.

And when moneymakers get ill, they miss work, lose jobs and incur expensive medical bills that can leave them further in debt and closer to foreclosure in Miami.

Mortgage counselors have been hired through federal grants to help homeowners and banks try to find a resolution to their financial issues, and 37 percent surveyed in January said they have worked with at least one suicidal homeowner.

But treating depression and other illnesses is the first step in making an unemployed homeowner more marketable. The Times suggests that if the 50 states negotiating with the big banks over their robo-signing and other errors end up coming to a settlement, some of the money should go toward health care.

The banks only care about making money and they will do anything to make it happen. They don't care if homeowners facing foreclosure in Miami are considering suicide because of the whole situation, all they see is green.

But if you are struggling with foreclosure, there is some good news. An experienced Miami foreclosure lawyer can step in and fight back the banks, keep you in your home, possibly even rent-free for a time, and cause problems for the banks. Taking an aggressive approach and fighting back is the only way to go when dealing with these greedy banks.

Continue reading "Don't Get Upset, Get a Good Attorney to Fight a Miami Foreclosure" »

A recent report by CoreLogic states that 10.9 million U.S. properties had negative equity, a leading cause of foreclosure in Miami.

Many people have been thrust into a difficult position because banks loaned out money for investment homes to people who couldn't really afford the payments. Once those people defaulted on the loans when the market collapsed, everyone was in trouble.

Now, foreclosures clutter neighborhoods throughout Miami and South Florida and the values of homes have plummeted. Investors and first-time buyers snatch up houses that once sold for six figures but are now going for low five-figure numbers. Many continue to struggle with underwater mortgages. For people who must move for work, they are in a tough position. They can't sell their homes, so they fall into foreclosure.

All of this has left many homeowners in a difficult position and in need of advice from an experienced Miami foreclosure defense lawyer. A foreclosure isn't a foregone conclusion, as banks have the responsibility of proving who owns the note on the home and whether they have legal authority to actually foreclose. Many areas of a foreclosure must be challenged in order for a homeowner's rights to be upheld.

According to the CoreLogic report, 22.5 percent of all residential properties with a mortgage were in negative equity by the end of 2011's second quarter.

More than 2.4 million borrowers had less than five percent equity, which is called near-negative equity. Together, those two numbers accounted for 27.5 percent of all residential properties with a mortgage. Nearly two-thirds of homeowners are paying higher, above-market interest on their mortgages while they are in a negative equity situation.

According to CoreLogic, Florida ranks third in homeowners with negative equity, behind only Nevada and Arizona. According to the research, about 45 percent of all homeowners have negative equity, while another three percent have near negative equity.

While the statistics show that negative equity is on the decline, it's likely because more homes are going into foreclosure and being taken away. The homeowners are choosing to walk away from their homes that may take decades to regain value and therefore the negative equity rates are falling. It by no means indicates that the market is getting better.

Strategic default is a risky move, but can work out for some homeowners if the situation is right. This means making a decision to stop making the payments and accepting the possible consequences, such as a default judgement.

A short sale is also an option in cases like these. If your house is worth far less than the loan you're paying on, renting it isn't plausible and you have little equity in the house, a short sale may work best for you. This means you find a buyer and offer the bank what the buyer is willing to spend and, in return, the bank drops the difference owed.

There are many options is cases of homeowners who are drowning in debt or who have a house that is far more of a liability than an investment at this point. Consider your options with an experienced Miami foreclosure defense attorney.

Continue reading "Miami Foreclosure Watch: 11 Million Properties in U.S. Have Negative Equity" »

Three Florida communities -- Miami, Fort Lauderdale and Naples -- are expected to be in for a collapse of their housing markets in the coming years, based on an analysis by 24/7 Wall St.

Florida has already been hit hard by the housing market's downward trend as well as a hit in unemployment because of the Great Recession. At 10.6 percent, only Nevada, California, Rhode Island and Puerto Rico had higher unemployment rates in June, according to the U.S. Bureau of Labor Statistics.

And with unemployment rates showing little sign of going down and housing prices continuing to take a hit, many people are being forced into foreclosure in Miami. But hiring an aggressive Miami Foreclosure Defense Attorney to fight a foreclosure is necessary in order to ensure the homeowner's rights are upheld.

The analysis done by 24/7 Wall St. was based on unemployment rates with little help for recovery on top of already weak housing values. The top 10 list is of cities that are expected to see housing market drops by at least another 10 percent by 2012. Real estate activity, a forecast of housing prices that would drop between early 2011 and early 2012, along with June unemployment levels, median household income and other factors went into the predictions.

In the top 10 list, inventory is high and demand is low as those who are unemployed can't afford to buy. Fear of prices dropping further also hurts these cities, the article reports and government programs have done little to help.

10. Fort Lauderdale: The analysts expect an 11.1 percent price drop as unemployment in June was 11.8 percent and the median family income was $58,800, while the median home price was $196,000. The home prices ranked 55th highest, while the income level was 194th. The low is expected to hit in the second quarter of 2013. From 2006 to 2011, home prices have dropped by 50 percent.

9. Bethesda, Md.: They expect an 11.5 percent drop, with the low coming at the same time as Fort Lauderdale. The median income is $114,100, the highest, but the median home price is $417,000, the fifth highest.

8. Salinas, Calif.: The authors expect an 11.8 percent drop, with unemployment at 12.8 percent. This suburb of San Jose has seen housing market drops of more than 61 percent and layoffs may be coming.

7. El Centro, Calif.: This is one of the poorest counties in the country, with a $43,300 media income and a 28.6 percent unemployment rate. Prices are expected to drop up to 12.1 percent by early 2012.

6. Miami: The median family income level is $47,800, 32nd lowest, yet the median home price is $175,000, good for 76th highest. The jobless rate was at 13.4 percent in June. Home prices are predicted to drop 13 percent by early 2013 and then take another 10.1 percent hit, making it the greatest depreciation of property values in the country.

5. Merced, Calif.: The June unemployment rate was a staggering 18.6 percent, with the median family income at $42,900. It is projected to hit rock bottom during the second quarter of 2012.

4. Detroit, Mich.: Housing prices are only a median $42,000, the lowest among major cities in the country. So, while the area hasn't had a sharp decline like many California and Florida cities, it is still expected to see a drop by next year.

3. Las Vegas, Nev.: Las Vegas has been hit hard by the recession, with home prices falling 42.3 percent between 2008 and 2011. It is expected to drop 13.9 percent by 2012 and another 6.3 percent in 2013.

2. Riverside-San Bernardino, Calif.: Unemployment sits at 13.7 percent and despite a rather high $59,700 median family income, median home prices sit around $181,000. In the last five years, house prices have split in half.

1. Naples: This Southwest Florida city tops the list because of a high unemployment rate (10.5 percent), very high median home price of $225,000 and a median family income of $62,800. Prices are expected to drop 16.6 percent and hit rock bottom at the end of 2012. Home prices are expected to drop another $40,000 in that time.

Continue reading "Miami, Fort Lauderdale Housing Markets Expected to Collapse, Analysts Say" »

Miami Foreclosure Defense Attorney Bruce Jacobs will be leading a discussion at an upcoming seminar on how to properly defend a foreclosure action in Miami and throughout South Florida.

LawReview CLE, a nationally recognized program that hosts seminars across the country, will be hosting a seminar July 28 at the Hyatt Hotel in Coral Gables. It is designed for lawyers and other law professionals and focuses on the foreclosure crisis, including the predicted second wave of foreclosure filings that experts believe will begin in the next several months.

Mr. Jacobs will also teach attorneys how to help their clients avoid foreclosure, defend foreclosure and seek alternatives to foreclosure. Mr. Jacobs is a member of Max Gardner's Army, a nationwide group of lawyers who share tactics and information about foreclosures in real time. He has used his experience and training to defend homeowners and now will be using his experience and training to supply knowledge to other lawyers, who will go forth and stand with homeowners against the banks that have wrought so much havoc in Florida and elsewhere.

Mr. Jacobs has practiced law in Florida since 1997 and has been lead counsel in more than 50 trials throughout South Florida; he has handled many appeals. Starting his career as a prosecutor for the Miami-Dade County State Attorney's Office, Mr. Jacobs has spent many years now dedicated to foreclosure defense, tax deed actions, landlord-tenant disputes and fraud cases. Before opening his own law firm, he headed up the foreclosure department of Camner, Lipsitz and Poller, P.A. in Coral Gables. He is an experienced foreclosure attorney who handles many Miami foreclosure cases.

Among the topics that are expected to be discussed at the seminar:

•Latest statistics on the foreclosure debacle and the emerging profile of a foreclosure candidate.

•Why lenders are resistant to loan modifications and why politicians just don't get it.

•Mortgage Securitization issues that affect a lender's standing to pursue foreclosure.

•Current developments on federal programs and agreements with lenders to assist homeowners keep their home and avoid foreclosure.

•Cutting-edge litigation strategies to properly defend a foreclosure action from start to finish.

•Overview of Federal lending laws and emerging foreclosure case law.

•Alternatives to foreclosure.

•An overview of the interrelationship between bankruptcy and foreclosure.

•Ethical considerations and effective communication with your client.

Mr. Jacobs will also talk with lawyers about the present state of the foreclosure crisis, mortgage securitization issues, understanding basic substantive law, client relations, judicial foreclosures, loan modifications, bankruptcy issues and ethics.

CLE stands for continuing legal education and the Florida Bar requires attorneys to continually gain education in their specific area of practice to stay up on the latest trends, court case rulings and rules for handling cases. During this seminar, lawyers will be able to gain first-hand knowledge from Mr. Jacobs about the latest trends for defending foreclosure cases in Miami.

With Mr. Jacobs' substantial experience fighting foreclosure cases, he was asked to participate in this seminar to teach other attorneys throughout Florida. This is just another step in his efforts to fight the banks that are trying to take people's homes.

Continue reading "Miami Foreclosure Lawyer to Train Attorneys How to Defend Homeowners" »

Miami Foreclosure Defense Attorney Bruce Jacobs is a panel member at an upcoming seminar to teach attorneys how to properly defend foreclosure cases in Miami.

LawReview CLE, a nationally recognized program that hosts seminars across the country, will be hosting a seminar July 28 at the Hyatt Hotel in Coral Gables.

The seminar, which is designed for attorneys and other law professionals, focuses on the foreclosure crisis, including the predicted second wave of foreclosure filings experts believe are on the way. Jacobs will also teach attorneys how to help their clients avoid foreclosure, defend foreclosure and seek alternatives to foreclosure.

Mr. Jacobs has practiced law in Florida since 1997 and has been lead counsel in more than 50 trials throughout South Florida; he has handled many appeals. Starting his career as a prosecutor for the Miami-Dade County State Attorney's Office, Mr. Jacobs has spent many years now dedicated to foreclosure defense, tax deed actions, landlord-tenant disputes and fraud cases. Before opening his own law firm, he headed up the foreclosure department of Camner, Lipsitz and Poller, P.A. in Coral Gables. He is an experienced foreclosure attorney who handles many Miami foreclosure cases.

Among the topics that are expected to be discussed at the seminar:

• Latest statistics on the foreclosure debacle and the emerging profile of a foreclosure candidate
• Why Lenders are resistant to loan modifications and why politicians just don't get it
• Mortgage Securitization issues that affect a Lender's standing to pursue foreclosure
• Current developments on federal programs and agreements with lenders to assist homeowners keep their home and avoid foreclosure
• Cutting edge litigation strategies to properly defend a foreclosure action from start to finish
• Overview of Federal lending laws and emerging foreclosure case law
• Alternatives to foreclosure
• An overview of the interrelationship between bankruptcy and foreclosure
• Ethical considerations and effective communication with your client

Mr. Jacobs will also talk with lawyers about the present state of the foreclosure crisis, mortgage securitization issues, understanding basic substantive law, client relations, judicial foreclosures, loan modifications, bankruptcy issues and ethics.

CLE stands for continuing legal education and the Florida Bar requires attorneys to continually gain education in their specific area of practice to stay up on the latest trends, court case rulings and rules for handling cases.

With Mr. Jacobs' substantial experience fighting foreclosure cases, his membership of Max Garnder's Army, a nationwide group of defense lawyers sharing strategies and information in real time, and the many homeowners he has helped using the law, he was asked to participate in this seminar to teach other attorneys throughout Florida.

Continue reading "Miami Attorney Bruce Jacobs to Lead Foreclosure Defense Training for Attorneys" »

St. Louis Fed Vice President David Wheelock noted in a 2008 article that Miami foreclosure homeowners can learn some lessons from how the country's forefathers handled such a crisis during the Great Depression.

Miami foreclosure attorneys understand that dealing with a foreclosure on your house, your business or other properties can be stressful, frustrating and depressing. So don't go about it alone and don't let the banks win. Consult with a team of attorneys with years of experience with the financial sector and the complex foreclosure process.

The article discusses how the 2008 residential real estate foreclosure rates, which were at the highest levels since the Great Depression, caused policymakers to take action to limit foreclosures. During the Great Depression, lawmakers created new federal agencies to refinance delinquent mortgages, insure and finance newly issued mortgages and expand federal farm credit programs. Many state governments halted foreclosures, limited deficiency judgments and enhanced the rights of borrowers to redeem foreclosed property.

The Home Owners' Loan Corporation was established in 1933 to refinance $1 million in delinquent mortgages during the Great Depression. The Federal Home Loan Bank System was created to mobilize funds for home lending and Fannie Mae was created to purchase Federal Housing Administration-insured homes.

Similarly, in 2008, the federal government took action. Only this time, so much of the help was aimed at banks, not homeowners. President George W. Bush signed the Housing and Economic Recovery Act, which included, among other things, a $300 billion increase in Federal Housing Administration loan guarantees to encourage lenders to refinance delinquent home mortgages. Also in 2008, Bush signed into law the Emergency Economic Stabilization Act of 2008, which authorized the U.S. Treasury to make capital injections into banks.

But during the Great Depression, foreclosure moratoria went into place in 27 states. Although they can benefit some borrowers and temporarily reduce foreclosures, critics argue they reduce the supply of loans and increase costs for future borrowers, Wheelock wrote.

In reality, few banks have gone to much trouble when it comes to helping homeowners. Those looking to stop foreclosure in Miami should not expect to be treated fairly by their bank or mortgage company. Consulting a real estate defense lawyer in Miami is your best bet for protecting your rights and the financial well-being of you and your family.

In 2009, California put on a temporary freeze on foreclosure filings. And in 2010 as states' attorney generals investigated shoddy bank paperwork and looked into the possibility of foreclosure stoppages, President Barack Obama said he supported such an action, but not a broad, nationwide foreclosure stoppage. Many banks took action themselves, stopping foreclosure filings because of false documentation and unauthorized signing of documents by servers and law firms. In Florida, many banks still haven't continued filing foreclosure proceedings at the rate they had in the last few years.

Far from a move to help homeowners, banks are simply covering their behinds and have returned to filing foreclosures as rapidly as possible as soon as they feel the coast is clear.

A good offense is often a good defense and that's also true in the foreclosure process. Loan modifications and short sales aren't the only strategies to fighting Florida foreclosures. Banks and financial institutions are dealing with many issues regarding the sloppy processing of foreclosure documents and their use of law firms that used thousands of fake "robo-signers" and forged documents. If you're in the middle of a foreclosure fight, those errors can be be put to work for you.

Negotiate from Strength.

Continue reading "Great Depression Provides Lessons for Miami Mortgage Foreclosures" »

Homeowners facing foreclosure in Miami have contributed to an "F" rating for Fort Lauderdale and Miami residents by TransUnion, one of the nation's top three credit scoring companies.

Many homeowners are afraid to enter the foreclosure process or to speak to a foreclosure lawyer in Miami, in part because they are concerned about the impact on their credit score. The reality is that a single late payment or missed payment can lower your score by 100 points or more. By the time a homeowner begins to consider foreclosure an option, the damage to a credit score has largely been done by late payments on mortgages, credit cards, car payments and other bills. Ironically, putting a foreclosure behind you, and regaining control of your finances, is the first step to repairing your credit worthiness.

The Miami Herald reports that TransUnion found that about one-fourth of South Florida residents had a credit score in the 500s during the second quarter of 2010. That qualifies the area for the agency's lowest rating; the company rates credit worthiness on a scale of 501 to 990.

South Florida was at the bottom of 50 metro areas ranked by TransUnion, along with Orlando, Memphis and Las Vegas. The Minneapolis-St. Paul region came out on top with about 23 percent of residents having a score of more than 900.

Continue reading "Dealing with foreclosure in Miami is first step toward repairing your credit score" »

Failure to stop foreclosure in Miami is one of the many ways in which consumers are seeing their credit scores take a big hit. MSNBC reports a reputable credit repair firm may charge $600 or more to assist you in getting your credit back on track.

But there are few secrets to a good credit score. Low credit card balances and on-time payments will do more for your score than all the counseling in the world. Unfortunately, if you are dealing with an underwater mortgage in South Florida or a short sale or other bad mortgage debt, little can be done to help your credit without addressing the real problem.

A Miami foreclosure defense attorney can assist you in determining the best course of action. Without proper assistance, a short sale or strategic default could result in a delinquency judgment and additional blows to your long-term financial well-being and credit worthiness.

Once you have dealt with your mortgage debt, you can begin to comb your credit report for errors or other problems that are needlessly dragging down your score. Too often, consumers continue to go on struggling with unmanageable debt out of misplaced fear of harming their credit score. In reality, your score has likely already taken a major hit from over utilization of available credit, missed payments, late payments and other issues. Getting back on strong financial footing may well allow you to repair your score faster than continuing to struggle with bad debt.

A free credit report is available at www.annualcreditreport.com. In general, scores in the 700 are good, high 600s are decent, low 600s are marginal and those with scores lower than 600 will find it difficult or impossible to get credit in the current environment. Rebuilding your credit requires paying your bills on time and using one-third or less of available credit.

Continue reading "Stopping foreclosure in Miami often the first step to repairing credit score" »

Financial executives were paid $2 billion in bonuses as the financial markets stood on the brink of collapse in 2008, the New York Times reported. The collapse was due in large part to risky bets, excessive leverage, and years of financial excess by corporate executives.

And about 80 percent of the bonus pay was not merited -- or about $1.6 billion.

It's hard to feel bad for the bankers. They are not the ones living paycheck to paycheck, or left dealing with an upside down mortgage, ruined credit, or an attempted short sale. A Miami foreclosure defense lawyer can help South Florida homeowners decided upon the best course of action. Whether you are looking to stop foreclosure, or are considering strategic default or a home-loan modification, speaking to an experienced attorney can help protect your rights.

As we have reported on our Miami Foreclosure Lawyer Blog, the wealthy are simply walking away from underwater mortgages and living to fight another day. The bankers got their money. Don't let a bank or homeowner's association guilt-trip you into remaining in a hopeless situation. Fighting for your rights could impact your standard-of-living for the rest of your life.

The government's report on bank bonuses found that 17 financial companies made questionable payouts totaling $1.58 billion immediately after accepting billions of dollars in taxpayer aid.

The group includes Goldman Sachs, JPMorgan Chase, AIG and Citigroup.

The watchdog has little or no authority to require the banks to repay the money. But will settle for proposing that banks voluntarily adopt a "brake provision" which will allow boards to suspend bonus payments in the event of a future financial crisis.

The practice of paying bonuses is alive and well again on Wall Street: Goldman Sachs is on pace to hand the average worker $544,000 in salary and bonuses; JP Morgan Chase's average is about $425,000 and Morgan Stanley employees could each collect $260,000.

Continue reading "Banks pay record bonuses but refuse to help stop foreclosures" »

Bank of America has agreed to pay $108 million to settle federal charges involving excessive fees charged to borrowers facing foreclosure, the Associated Press reported. The allegations were levied against Countrywide Financial Corp., which Bank of America purchased nearly two years ago.

This is yet another case where banks have been caught taking advantage of borrowers. Hiring a trial lawyer is your best option to stop foreclosure in Miami. Borrowers should seek legal help to protect their rights as a homeowner. We offer foreclosure help in Miami and throughout South Florida. Other tactics banks use include sloppy paperwork and missing promissory notes. In a foreclosure proceeding, a bank has the burden of proof. A comprehensive discovery investigation conducted by an experienced Miami foreclosure attorney is the best way to stop a foreclosure.

Countrywide's misconduct has reached near legendary status. Last year, the top three executives of the company were charged with civil fraud and insider trading by the Securities and Exchange Commission. In this case, the $108 million settlement seeks to refund money to about 200,000 borrowers. It is the largest mortgage industry settlement ever obtained by the Federal Trade Commission.

FTC Chairman Jon Leibowitz accused Countrywide of "callous conduct, which took advantage of consumers already at the end of their financial rope."

Countrywide slapped borrowers who were behind in their mortgages with several thousand dollars worth of fees at a time. The fees included charges for property inspections and landscaping that were far above market rates; the company created subsidies to hire vendors and marked up the prices of the services.

"Countrywide profited from making risky loans to homeowners during the boom years, and then they profited again when the loans failed," Leibowitz said. It could take months to contact affected borrowers; authorities describe Countrywide's record keeping as "beyond abysmal."

Consumer advocates allege banks have not done enough to prevent foreclosures precisely because of the profits involved in collecting such fees -- Countrywide even identified it as "part of our diversification strategy" as foreclosures soared.

Countrywide is also accused of making false claims to borrowers in bankruptcy about the amount owed on their loans and failing to tell borrowers about fees and other charges. The settlement requires Bank of America to notify bankrupt borrowers about what they owe on a monthly basis.

Continue reading "Mortgage foreclosure help in Miami can prevent banks from taking advantage of struggling homeowners" »

Skyrocketing foreclosures continue to push people to extremes. Recent cases include the suspect in the attempted bombing of Times Square and an Ohio man who refused to leave his home when the sheriff arrived with an eviction notice.

As South Florida homeowners continue to struggle with foreclosure, underwater mortgages and eviction, hiring an experienced Miami foreclosure defense attorney is the best course of action to protecting your rights and the financial well-being of you and your family. While the New York case is being linked to a possible terrorist attempt, cases of homeowners locking themselves in their homes, and even sheriffs who are refusing to serve foreclosure and eviction notices, continue to surface.

Such cases illustrate the need to be proactive early in the process and to seek the guidance of a qualified Miami real estate lawyer to protect your rights before the situation gets out of control.

The suspect in the attempted bombing of Times Square in New York City was dealing with a foreclosure action, MSNBC reported.

Pakistani-born Faisal Shahzad, 30, and his wife, were facing foreclosure on their Shelton Connecticut home and had abandoned it months ago. The lawn was being mowed on behalf of J.P. Morgan Case & Co., which issued the mortgage when the home was purchased in 2004. Chase Home Financial filed the foreclosure action against the couple last September; court documents indicate neither Shahzad nor his wife showed up to defend themselves. The most recent documents in the case were dated April 23.

Meanwhile, the Miami Herald reports that an Ohio man facing eviction locked himself inside and vowed to stay until a moratorium has been declared on foreclosures.

The man began his crusade on Sunday, along with five members of a group calling themselves the Toledo Foreclosure Defense League. The homeowner said he has attempted to work with the bank and done everything possible to save his home. He said he fell behind on the mortgage last year, after having surgery and losing his job. He said he has lived in the home for 20 years. The sheriff said he'd given the man extra time but had no choice but to evict him.

Continue reading "Extreme foreclosure cases illustrate need for early intervention of a Miami foreclosure defense attorney" »

The number of homeowners who defaulted on their home mortgage loans, even after getting cheaper terms through the government's home loan modification program, doubled in March according to an article this month in the New York Times.

This is another example of why loan modifications are not always the best answer for South Florida homeowners struggling with underwater mortgages, foreclosure or bankruptcy in the Miami area. As one of the nation's hardest-hit real estate markets, homeowners need an experienced Miami foreclosure defense attorney to push for a reduction in principal or assist you and your family in seeking other alternatives.

As we reported last month on our Miami Foreclosure Lawyer blog, more than half of all homeowners continue to struggle even after loan modification.

The latest data, released Wednesday by the U.S. Treasury Department, shows the number of terminations in the program has skyrocketed to 2,879 in March, up from 1,499 in February and 1,005 in January. Almost all terminations were apparently the result of a borrower being unable to make new payments.

While the government's stated goal is to assist 4 million homeowners through modification, only 227,922 modifications had been made through the end of March.

Continue reading "Defaults in home-loan modification program increase; consulting an attorney the best option" »