Miami Foreclosure Lawyer Blog

President Obama's foreclosure rescue plan is losing its punch, just one more sign that struggling South Florida homeowners should not wait for the government to help deal with their bad mortgage debt.

Our Miami foreclosure defense attorneys continue to report on the mixed signals coming out of Washington. Most recently, we reported on our Miami Foreclosure Lawyer Blog that a new bailout effort court be on the horizon. Fighting for your rights as a homeowner and consulting an experienced lawyer to help stop foreclosure in Miami are your best options for striking the best deal for you and your family.

In July, fewer than 37,000 homeowners received long-term mortgage modifications from the Home Affordable Modification (HAMP) program -- Down from 51,205 in the previous month. Thus far, about 434,000 homeowners have made it out of the trial phase.

Meanwhile, more and more homeowners continue to drop out of the program: About 13,000 fell out in July.

"We know that we must continue to provide support to underwater borrowers, unemployed homeowners, and to the nation's hardest hit neighborhoods," said Assistant Housing Secretary Raphael Bostic. Nowhere have homeowners been harder hit than in South Florida. It's another sign that additional help may be on the way for those who fight for it.

Meanwhile, the government is set to roll out yet another new program -- the FHA Short Refinance Option. It allows underwater homeowners to refinance into an FHA backed mortgage provided they are current on their payments and the bank agrees to write off at least 10 percent of the principal. In theory, this will give the homeowner a more affordable loan, do something to address the lost property value, and provide the bank an incentive to make the deal because the new loan would be backed by the federal government.

Like the programs that have come before it, this may be a viable option for some homeowners. But the best course of action is to discuss your options with an experienced Miami real estate attorney.

Continue reading "Government mortgage modification may not be best option to stop foreclosure in Miami " »

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" »

As election season heats up, so do the rumors that politicians will fashion a South Florida homeowner's Hail Mary that will involve billions of dollars in debt forgiveness for underwater property owners, according to MSNBC.

Having been bailed out themselves with the help of billions in tax dollars, banks will undoubtedly fight any move to help stop foreclosure in Miami by forgiving principal mortgage balances. Many homeowners will likely be left out and not everyone will be treated the same. Hiring an experienced foreclosure defense lawyer in Miami is the best way to fight for your rights.

Many expect a massive overhaul to be announced sooner rather than later. "I think it will happen in some fashion," said Nova Southeastern University Professor Albert Williams. Without such a drastic step, the economy may continue to suffer as struggling homeowners who are saddled with bad debt are unable to contribute positively to an economic recovery.

How such a bailout would work remains murky, particularly in the Broward County and Miami-Dade areas, two of the nation's hardest-hit counties. One of the challenges is helping underwater homeowners without penalizing those who have managed to stay current on their mortgage. Polls have found that 58 percent of respondents oppose a mortgage bailout and many expect the political rhetoric to be toxic. Many believe including something for everyone is the only path to success.

"Even if someone is upside down on a house and has never missed a payment, something needs to be done for them as well," James Katz, of the Katz Reality Group, told the Herald.

Continue reading "Bailout for South Florida homeowner's could be on the horizon; stopping foreclosure in Miami a priority" »

CBS 4 is reporting that home values continue to plummet in South Florida, with struggling Miami homeowners being among the hardest hit.

Nearly half of all home sales in Miami were short sales. The banks are evolving and getting smarter as the real estate slump grinds on. The best way to stop foreclosure in Miami is to move aggressively to protect your rights with the help of a Miami real estate attorney. Mortgage relief and principal reduction programs are not the same for everyone. By negotiating from a position of strength, you can best protect the financial well-being of you and your family.

Zillow.com reports South Florida is one of the 20 worst areas in the country for falling property values and struggling underwater homeowners. Zillow reports that the average home price in Miami-Dade is $144,700 -- down more than 20 percent from last year. In Broward County, the average value is $134,800, a decline of nearly 14 percent from a year ago.

In Miami Dade, prices have dropped 55 percent from the peak of the housing bubble in 2006 -- meaning your house is likely worth less than half of what it was four years ago. In Broward County, prices have dropped 54 percent.

When it comes to negative equity, 44 percent of South Florida homeowners owe more on their home than it is worth in the current market. And nearly half of all homes sold in June in South Florida were sold for a loss.

Zillow found that Tampa and Orlando is in even worse shape than South Florida.

Continue reading "Half of Miami homes sold as short sales - half of Miami homeowners underwater - homes worth half of market highs" »

Superman saved one lucky family after an original comic book helped stop foreclosure, ABC News reported.

Our Miami foreclosure defense lawyers have not had a rare comic book stop foreclosure in South Florida. But we have assisted numerous homeowners in buying enough time to reach the solution that is right for them. Help is often available to those who seek it. And staying in your home for as long as possible can frequently offer the best chance of regaining solid financial ground.

The comic book found in their basement is the Holy Grail for collectors and could fetch up to a quarter million dollars at auction. The copy of Action Comics No. 1 -- the very first Superman comic to ever appear -- was found as they went about the task of packing up the home where they had lived for half a century.

"The bank was about ready to foreclose," said Vincent Zurzolo, co-owner of ComicConnect.com and Metropolis Comics and Collectibles in New York. "Literally, this family was in tears. The family home was going to be lost and they're devastated. They can't figure out a way out of this. They start packing things up. They go into the basement and start sifting through boxes - trying to find packing boxes - and they stumble on eight or nine comic books."

Most of the comic books were valued at less than $30. But the 1938 book depicting the Man of Steel lifting a car above his head is among the most sought after comic books in history. The issue sold for 10 cents and ushered in the age of the superhero.

Nationwide, more than 1.6 million properties were in some form of foreclosure during the first half of the year. The homeowners in this case wished to remain anonymous.

"People don't want people knowing how much money they have," Zurzolo said. "Some people are very paranoid."

Continue reading "Man of Steel may not prevent foreclosure in South Florida - experienced defense lawyer best bet for homeowners" »

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" »