Banks’ Problems Continue to Linger as Miami Foreclosure Processing Slows

According to a recent report in The Miami Herald, there were only 4,640 foreclosures filed in May in South Florida, down from nearly 15,000 in May 2010.

What this shows is that banks still haven’t gotten to the root of the problems that Miami Foreclosure Lawyers have seen with robo-signing, bad mortgage servicer company documents and errors made in paperwork banks and their law firms have tried to file in court. While it may not be easy, fighting foreclosure in Miami has become more advantageous for homeowners in upside down mortgages clinging to their houses.
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The analysis was done by research firm RealtyTrac and shows that mortgage foreclosure filings are only one-fourth of what they were at this time last year. Miami-Dade County had 2,768 foreclosures in May, down 64 percent from the same month last year. Since last fall, banks have slowed foreclosure processing to deal with document irregularities, so the drop reflects the banks problems and not necessarily an improving housing market.

Experts predict a new wave of foreclosure cases may be filed once banks and lending institutions figure out their bad paperwork, but there are tens of thousands of cases that were handled by two foreclosure law firms that went out of business, leaving behind those cases that have been sitting stagnant.

While all of this may seem like bad news and the thought of losing one’s home can be terrifying, this news is good news for homeowners who are facing or may face foreclosure. With the glut of cases on the court docket and banks struggling to fix their errors, judges nationwide are beginning to hold banks accountable.

There have been many recent rulings where banks haven’t been able to foreclose on a house because they can’t prove who actually owns it. Mortgages are sold left and right to investor groups and sometimes the paperwork isn’t properly kept. This can provide the homeowner with a great defense to foreclosure.

And bank regulators are searching for ways to force banks to accept reasonable offers to jump start the economy. This can include loan modifications. Many banks would rather attempt to foreclose on a house instead of working with homeowners to modify the loan to what the house is worth.

Our firm will investigate your case thoroughly and fight for a loan modification if that’s what the homeowner wants most. If our client is on the brink of foreclosure and must stop making mortgage payments because of a job loss or other problem in their life, we will do everything we can to prove the bank can’t determine who owns the house or help you avoid a deficiency judgment at the end of a foreclosure case. There are many defenses to these kinds of cases, especially in light of all the recent bank problems. But don’t attempt to deal with the banks alone. Get sound advice by calling today.

Negotiate from Strength!

If you are fighting foreclosure in Miami or the surrounding areas, contact Jacobs Keeley for a confidential appointment to discuss your rights. Call (305) 358-7991.

Additional Resources:

Processing delays slow foreclosures, by Toluse Olorunnipa, The Miami Herald
More Blog Entries:

U.S. Treasury Slams Mortgage Servicers Who Hampered Miami Homeowners in Foreclosure: June 16, 2011
Banks Hitting a Roadblock When Trying to Foreclose on Miami Homeowners: June 15, 2011