Miami Foreclosure Lawyer Blog

More than half of borrowers who received loan modifications on delinquent mortgages default again within nine months, according to a new federal report published by Bloomberg News.

South Florida homeowners facing default or foreclosure should contact an experienced Miami foreclosure defense attorney to discuss their options. Government and private mortgage assistance programs, short sales, strategic default, foreclosure and bankruptcy are all options best discussed with a qualified South Florida real estate lawyer.

The re-default rate for modified loans in the first quarter of 2009 was 51.5 percent by the end of the year. Payments at least 30 days late climbed to 57.9 percent when measured during the previous 12 months.

One in four homeowners are struggling with underwater mortgages -- meaning they owe more on their home than it's worth. Florida has been among the hardest hit areas in the nation as property values have plummeted and unemployment continues to linger in the double digits.

The median price of a U.S. home was $165,100 in February, down 28 percent from the height of the market in July 2006, according to the National Association of Realtors. In Florida, values have fallen 45.7 percent, the third-worst in the nation behind Nevada and Arizona.

The number of homeowners more than 60 days late on their mortgage payments climbed 49.6 percent year-over-year -- leading to an estimate of 4.5 million foreclosure filings this year, according to RealyTrac.

As of the end of February, the government home-loan modification program, had assisted 168,708 homeowners with permanent modifications.

Continue reading "South Florida homeowners continue to struggle even after loan modification" »

The Obama Administration moved on Friday to provide long-awaited assistance to homeowners struggling with underwater mortgages, even as new data suggests Florida is the hardest hit area in the nation amid the lingering foreclosure crisis.

While help will not be available for everyone, an experienced Miami foreclosure attorney should be called to assist struggling South Florida homeowners determine the best course of action, including loan modification, short sales, foreclosures, principal reductions and bankruptcy.

The government reported this week that 16 of the top locations in the nation for troubled FHA mortgages are in Florida -- including Miami where 18 percent, or nearly 1 in 5 federally-insured mortgages, were in trouble.

CNN reported Friday that the new effort would require mortgage companies to reduce monthly payments to no more than 31 percent of a borrower's income and mandate suspension of payments for 3 to 6 months for some borrowers, including the unemployed. Additionally, those in the government's loan-modification program, known as the Home Affordable Modification Program, would be able to get a reduction in principal if their outstanding loan balance is greater than 115 percent of their home's value.

The Washington Post provides a good Q & A for struggling homeowners, which answers questions for unemployed borrowers, those struggling with underwater mortgages, program restrictions, second mortgages, FHA loan options, impact on credit scores, delinquent payments, reductions for owners already in a loan-modification program, and taxpayer implications.

QA Will foreclosure-prevention measures affect me.pdf

Continue reading "Help may be coming for South Florida homeowners struggling with unemployment, underwater mortgages " »

The Obama Administration is proposing a program that would pay some homeowners to sell at a loss, according to an article in the New York Times.

The announcement is the latest in a string of government and state programs designed to assist residents facing foreclosure. An experienced Miami foreclosure attorney can help you determine the program that is right for you and fight to keep you in your home.

This latest program, which will provide underwater homeowners with cash in an effort to induce them to sell for less, is the latest attempt to deal with the estimated 5 million households who are behind in their mortgage and in danger of foreclosure. South Florida is among the hardest hit areas in the nation.

The government's $75 million mortgage modification plan is another program available to Miami homeowners, though it has helped just a small percentage of eligible homeowners.

An estimated 1 in 6 U.S. borrowers owe more on their home than it is worth after the nation's real estate bust erased more than $3.3 trillion in home equity during 2008, according to the real estate site Zillow.

The new program takes effect April 5 and will encourage hundreds of thousands of borrowers to sell their homes through short sales, a process where the bank permits a house to be sold for less than the amount owed.

Continue reading "Underwater homeowners in South Florida can seek assistance through new government short sale program" »