Miami Foreclosure Lawyer Blog

Our Miami mortgage modification lawyers want to inform you about reductions in mortgage payments being extended to certain underwater homeowners whose loans were held by Bank of America and the now-defunct Countrywide Financial.

A Miami mortgage modification can mean the difference between keeping your home and spiraling further into debt, and possibly being forced into a Miami foreclosure situation.

Bank of America has started sending out letters to customers, letting them know they plan to forgive part of their principal balance on their mortgages.

Back in 2008, BofA purchased Countrywide for about $4 million. Back then, Countrywide was financing some 20 percent of all the mortgages in the country - more than any other single lender. The problem was that the majority of those mortgages were toxic.

So now, BofA is reaching out to more than 200,000 individuals who may qualify for assistance. Some of those could see savings of up to $150,000 or a 30 percent reduction.

All of this stems from the $25 billion settlement that BofA and four other major financial institutions made with attorneys general from 49 states, following evidence of widespread fraud and abuse within the mortgage system - the same abuse that ultimately led to the housing bubble burst and the economy tanking.

Our Miami mortgage modification attorneys believe this is a baby step in terms of making it right, but it is a step forward nonetheless.

It's important to note that not everyone who had a Countrywide or Bank of America mortgage is going to qualify. Here's what the guidelines are:

• The homeowner must owe more on the property than it is currently worth;
• The homeowner must have been at least two months behind on payments as of this past Jan. 31st;
• The homeowner has to have a contractual monthly payment for interest, hazard insurance, principal, property taxes and any other home association fees that total a value of more than 25 percent of their total household income;
• The homeowner has to have a loan that is owned and serviced by BofA or another investor that has given BofA the authority to delegate such modifications.

That last part means that homeowners whose loans were backed by Freddie Mac, Fannie Mae and the FHA/VA aren't going to be eligible.

When the process started in March, the bank started just with homeowners who were already in the process of applying for a mortgage modification. Within that program, there have been roughly 5,000 individuals who have been offered modifications, which amounts to about $700 million in principal payments that have been forgiven.

Keep in mind that a number of scams are currently being run by individuals claiming to be BofA. They request a great deal of personal information, which they then use to commit identity theft.

The best way to see if you might qualify is to either call BofA at 1-877-488-7814. Additionally, even if you don't qualify, our Miami mortgage modification attorneys may be able to help you uncover other options.

Continue reading "Miami Mortgage Modification: Bank of America Begins Reducing Balances" »

Despite the fact that the government is touting the extension of the Home Affordable Mortgage Program (HAMP), the move is likely to have little effect in terms of slowing Miami foreclosures or helping struggling homeowners.

The government program, aimed to help homeowners, had been set to expire at the end of this year, but will now run through the end of 2013.

Our Miami foreclosure attorneys understand that while the Obama administration had promised 18 months ago that more than 4 million people would be aided by the modified loans, less than 1 million have actually been helped. Media reports indicate there were almost 24,000 loan modifications made nationwide in December - bringing the grand total to about 933,000 - falling far short of the 4 million initially promised.

So why extend a program that has clearly not been effective in its goals? Because it benefits the banks.

The Department of Treasury reports that 84 percent of the people who sought help through the HAMP received it. What they don't tell you is that often, people are sinking money into homes that - no matter what - they are not ever going to be able to afford. These are hard-working individuals who are hoping to maintain their credit and keep their homes.

The truth is, though, that many of these people are simply being squeezed for a few more mortgage payments on their underwater homes before they finally realize it's simply not worth it and give up. The reason is because many of these modifications are temporary. The person may make smaller payments for a set period of time, without penalty. But if a person isn't approved for a permanent loan reduction, he or she is still going to be responsible for the difference.

When they realize they still can't afford it, they are going to be in the same position they were in to begin with.

The HAMP program was introduced by the Obama administration in 2009 to help distressed homeowners get back on their feet in a housing market that was fast dissolving into quicksand.

While the federal government had set aside more than $30 billion for the program, only about $2.3 billion has been spent to date. Another $10 billion has been committed, but hasn't been paid yet.

Another issue that has been voiced by consumer advocates is that Fannie Mae and Freddie Mac, both government-owned mortgage lenders, are not required to forgive their borrowers' debt. Neither the recent move to extend HAMP nor the deal struck between the U.S. government and 49 state attorneys general address this issue.

One positive aspect to the HAMP extension and modification is that the criteria for eligibility has been somewhat relaxed. Before, the only people who were allowed to participate were borrowers whose monthly mortgage payments comprised at least 31 percent of their total income. Under the new rules, even someone with more affordable payments can qualify. The government's idea is to be able to also include those who are afflicted with other expenses, like credit card debt or hefty medical bills.

Continue reading "Miami Foreclosures Not Slowed by Federal HAMP Extension" »

Much was made in recent years about the millions of dollars dedicated to helping homeowners work their way out of Miami foreclosures because of underwater mortgages that caused many to consider a strategic default.

In order to keep people in their homes, the Obama administration set up funds and breaks to banks to encourage them to modify loans to Miami homeowners, though they missed the mark. While there was a goal of helping many people with these programs, they did little to help.

A recent article by USA Today examines what went wrong and how come the programs touted by the government fell short. Our Miami foreclosure defense lawyers have seen how government-backed Fannie Mae and Freddie Mack knew about robo-signing problems and did little to address it. It has been documented that the government has done nothing to prosecute bank officials who ordered Miami foreclosure to be processed through fraudulent means.

So why would anyone believe that government-backed programs would really be designed to help homeowners? The Fed loaned out trillions of taxpayer dollars to banks to save them from their own greed and ineptness. And banks turned around and made a multi-million dollar profit from the loans!

The only way to keep your home is to fight for it, not rely on the government to help. Our Miami foreclosure defense lawyers are prepared to take on any bank that is attempting to infringe upon your rights as a homeowner.

According to the USA Today article, a couple from Mississippi lost their house to foreclosure at a time when they were being reviewed for a loan modification through a government-backed program. A Realtor knocked on their door one day and told them to leave.

The Obama administration's foreclosure prevention programs were supposed to help between 7 and 9 million Americans, but so far only helped about 2 million and many of those aren't out of danger yet. The couple is among a rising number of Americans who have felt the government has failed them and their banks are doing nothing to help.

As of Nov. 30, according to the article, only $2.8 billion of the $46 billion that was designed to help foreclosures has been spent. More has been dedicated, but the Congressional Budget Office estimates only $13 billion ultimately will be paid out.

Since 2009, 2.5 million homes have been lost to foreclosure and another 4 million are in the foreclosure process or on the brink. Home prices are falling everywhere. Experts say the programs had severe design flaws and didn't provide enough incentive for banks and mortgage servicers to stop a foreclosure. In many cases, lenders and their contractors make more money off a foreclosure than modifying a loan, even if government programs are utilized.

Even lawmakers admit that more was done by the government to help the banks than to help homeowners. Trillions in loans were doled out to save them, even to foreign banks with interests in the United States, but little has helped homeowners.

Seeking a loan modification is fine, but it's rare that the banks will agree. They simply don't make money from it. They would rather foreclose in Miami than attempt to work with a homeowner.

That's why fighting back and looking for problems with the bank's paperwork, evidence of robo-signing or other fraudulent practices and problems may be the best option. Don't rely on the government to help. Hire an experienced law firm and negotiate from strength!

Continue reading "Why Did Government Aid Programs Miss the Mark on Miami Foreclosures?" »

A recent NBC News report details how the government's loan modification program has actually made things worse for people battling foreclosure in Miami and elsewhere.

These government-backed programs have done little to help struggling homeowners. You can't rely on the government and you certainly can't bank on the banks trying to help you if you are struggling with foreclosure in South Florida or anywhere else. The best solution is seeking an experienced Miami Foreclosure Defense Attorney who can help you strike back at the banks in court, where the law is on the side of the homeowners.

Visit msnbc.com for breaking news, world news, and news about the economy

The report highlights the situation of a couple from Vermont, who fell behind by one mortgage payment in 2009. They took part in the government's Making Home Affordable loan modification program after encouragement by their bank.

They received a trial modification, which reduced their payments by $600 per month. After communicating with their bank, asking if they had gotten a permanent modification, the bank's officials just told them to keep making their reduced payments.

But after a few months, they received shocking news -- letters from their bank telling them they were in foreclosure and using the difference of the reduced payments against them. Bank officials told them they had to come up with the difference from several months, plus late fees totally $13,000 or risk losing their house. Bank officials told them the couple hadn't sent in the proper documentation and therefore they were being denied for a permanent modification.

The NBC report found that the loan modification program is a trap because after reducing payments, the bank can deny the permanent modification, demand back payments and send a homeowner into foreclosure in the end.

Out of 1.6 million people who have gotten temporary modifications, only 600,000 received permanent modifications. But the Obama administration counts both groups as being helped by the program. About 15 percent, as of 2010, still ended up in foreclosure.

The banks are great deceivers. They are skilled at trying to get the most they can out of homeowners instead of helping them save their homes. It's obvious that for banks, they are far more concerned with the bottom line than with the homeowners.

Sadly, Miami Foreclosure Lawyers have seen more and more desperate homeowners sucked into loan modification scams, poorly run government programs and false promises from the banks themselves. People want to save their homes, but without the ability to print money or produce the collateral to take out lavish loans, they can feel hopeless. Sometimes too-good-to-be-true programs come along and people jump at the chance to save their home, which ends up costing them more in the long run. As the couple in the news report experienced, their bank simply wanted to squeeze as much money from them as possible and use pressure from a potential foreclosure as the way to do it.

But an experienced and aggressive Miami Foreclosure Defense Attorney can use the law and the skills obtained over time to help people stay in their homes and avoid foreclosure. Banks have dirty little secrets and exposing them can help homeowners keep their houses.

Continue reading "Banks Fool Miami Homeowners Who Participate In Loan Modification Program" »

A new report by the Homeownership Preservation Foundation shows that Miami leads the nation in reports of fraudsters offering mortgage modification scams, The Miami Herald reports.

Many homeowners are struggling to get by and are worried that because their Miami homes are upside down in value after the Great Recession, they don't know where to turn next. Miami Foreclosure Lawyers urge homeowners to contact them before they try to work with a mortgage modification company.

Some of these companies simply make promises of helping desperate homeowners modify their loans without any power to make it happen. Homeowners can be left with less money and no real change to their loan. Hiring an experienced foreclosure attorney in Miami would allow the homeowner to use the law and the court system to try to modify a loan rather than a company that may not have any luck simply picking up the phone and calling the bank.

The Herald story found that Miami leads other cities, such as Los Angeles, Las Vegas, Houston and Chicago in terms of reported mortgage modification scams. Racial and ethnic minorities were particularly susceptible to the scams, accounting for more than half of all complaints.

The study was conducted by Homeownership Preservation Foundation, a Minnesota-based non-profit group that offers a counseling service for homeowners.

Florida has the nation's second-highest proportion of mortgage scam complaints, accounting for 7 percent of the country's scams. California led the country with 22 percent. A Florida law passed in 2008 made it illegal for companies offering mortgage modification help to charge homeowners upfront. A Federal Trade Commission proposed rule last year did basically the same thing. The Florida Attorney General's Office received 2,500 complaints last year and is investigating 70 companies.

Many homeowners are duped into using these services because they guarantee help with your loan and make promises that if you just pay a certain amount up front or make monthly payments, you can get the help you need. While they sound great, they are often misleading and don't do much good at all.

Loan modifications and short sales aren't the only ways homeowners can look to stop foreclosure in Florida. While they are options, they aren't the only options. Because of banks' heavy use of "robo-signer" documents to force foreclosures and other fake documents they have filed with the courts and presented to be correct even though they aren't, homeowners have a distinct advantage.

Hiring an experienced Miami foreclosure attorney can help you stay in your home, get the bank to make concessions and even modify your loan because of their mistakes. But you need someone who knows how to look for those errors and can expose them in court for your benefit. Trust experience and diligence over fly-by-night companies that may or may not have your best interests at heart.

Continue reading "Mortgage Modification Fraud Reports in Miami Tops in the Nation" »

Propublica recently detailed another mortgage modification nightmare, as banks continue to throw roadblocks and wrenches into the process. While modification is one option for those looking to prevent foreclosure in Miami, it is an option increasingly wrought with peril.

Our Miami foreclosure defense lawyers recently reported on our Miami Foreclosure Lawyer Blog that Washington politicians have voted to throw in the towel on HAMP, the government's $50 billion help-for-homeowners program. The plan ultimately spent just $1 billion and helped just a fraction of the eligible homeowners, primarily because banks refused to cooperate, lost paperwork, broke promises and did everything possible to avoid foreclosure -- which is their new billion-dollar business.

Bruce Jacobs is part of "Max Gardner's Army" and is trained in the cutting-edge strategies being used to assist homeowners in fighting foreclosure. Max's army is a nationwide team of foreclosure lawyers who are sharing information and strategy in real time.

Whether you are considering a short sale, mortgage loan modification or strategic default, we can help protect your rights. Protecting yourself against a deficiency judgment is another important consideration when it comes to dealing with bad real estate debt.

In this case, Propublica reports a Georgia homeowner spent two years working out a loan modification. Her bank agreed. The investors who had bought the mortgage-backed securities of which her mortgage was a part also agreed. However, the investor's trustee -- whose job it is to make sure the bank is striking the best possible deal on behalf of investors, refused to accept the deal. The bank HSBC was the trustee for the package of mortgages. And it refused to allow the modification. The case resulted in an unprecedented move. The loan servicer (which the average homeowner knows best as the bank holding their mortgage) has sued HSBC in an attempt to force approval of the modification.

In the meantime, the servicer, OneWest, has also filed foreclosure action.

Homeowners are finding loan modification can be a nightmare. As we have reported, banks have approved temporary modifications, only to reject permanent modification and use the resulting arrears as a reason to foreclose. In other cases, they have resold the note and the new bank has refused to honor the deal.

We are long past the time where a homeowner should deal with their bank expecting a fair deal. Wall Street is reporting banks have gone back to billion-dollar bonuses and million-dollar profits. Meanwhile, criminal investigations into their behavior have been launched in all 50 states -- more for political posturing than out of any real concern for the plight of middle class homeowners.

Consult an experienced foreclosure defense attorney in Miami-Dade. Negotiate from Strength.

Continue reading "More Headaches for those Seeking Mortgage Modification in Miami" »