Miami Foreclosure Lawyer Blog

South Florida homeowners holding adjustable rate mortgages are among a new wave of property owners seeking to avoid foreclosure. A rising number of commercial property owners are also seeking ways to stop foreclosure.

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.

Continue reading "Miami mortgage foreclosure help available for those with commercial or adjustable-rate mortgages " »

More than a third of the borrowers who have enrolled in the Obama Administration's mortgage modification effort are no longer participating in the program, the Associated Press reported.

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.

Continue reading "Mortgage loan modification no easy answer for struggling Miami homeowners" »

Homeowners who sign up for the federal government's mortgage assistance program are getting punished by lower credit scores, MSNBC reported.

Seeking alternatives to mortgage foreclosure, including short sales and loan modifications, will not save your credit scores. Contacting a Miami foreclosure defense attorney is the best strategy to resolving an underwater mortgage or other challenges faced by South Florida homeowners.

For struggling homeowners who are making their payments but facing default, seeking help through President Obama's loan modification program can reduce credit scores by as much as 100 points. Such a hit can take a borrower from a credit score of 700 -- which is considered average -- to below the territory considered sub-prime, which can make it tougher to get a loan and result in higher interest rates and other restrictions.

Housing advocates contend it's unfair and homeowners are often surprised and disheartened to learn that attempting to avoid a foreclosure can still result in significant damage to a credit rating. While it can be less damaging -- a foreclosure will remain on your record for years and can shave 150 points off a credit score, which is graded on a scale from 300 to 850 -- there is little practical difference to the immediate damage of a credit score which drops 100 points, versus 150 points.

And for many borrowers, the damage is already done from missed payments as they struggled with an unaffordable or underwater mortgage for months before seeking professional help.

Continue reading "South Florida homeowners face damaged credit from home loan modification programs" »

Homeowners facing foreclosure in Miami and South Florida are getting new help from the Courts. In a pilot program, borrowers seeking a loan modification, short sale, short payoffs or graceful exit can negotiate with their lender in mediation before a foreclosure can proceed. The program has already helped hundreds of homeowners save their homes from foreclosure.

The Florida Supreme Court's special task force on residential foreclosures recommends mandatory mediation to ease the crisis overwhelming Miami and South Florida courts. The plan is to force mediation on primary homes so homeowners can negotiate loan modifications and expedite foreclosures of vacant and abandoned properties

Miami-Dade Circuit Court Judge Jennifer Bailey chairs the 15-member residential foreclosure task force which suggests dividing foreclosure cases into three categories: primary homes, also known as homesteads; vacant and abandoned properties; and all others.

Almost half of all South Florida homeowners are underwater on their home. This means they owe more to their mortgage lender than their house is worth. With unemployment rising and foreclosure filings skyrocketing over the past three years, help is sorely needed. Miami-Dade County has seen 29,618 foreclosure cases filed since May, 2009, and Broward has seen 22,306.

While mandatory mediation will be a godsend to homeowners, Lenders are not as happy. The program is considered to costly and will delay foreclosure cases. Especially for those borrowers who may have already been considered and denied help. The plan calls for the lender to bear most of the cost of this mandatory mediation program.

Mandatory mortgage mediation will force the lender to meet with the homeowner, and their counsel, to discuss various settlement proposals. This will avoid one of the biggest problems with loan modifications - Banks and lenders cannot keep up with the demand. Endless waiting on hold and confusing, contradictory procedures make the process frustrating and inefficient. Sitting down with a mediator and your attorney can mean all the difference in avoiding the worst-case scenarios in a foreclosure.

Mediation urged before foreclosures - 08_18_2009 - MiamiHerald.com.pdf