Miami Real Estate Attorney Blog

Three years, three attempts to pass bills pushing for Florida foreclosure reform. The newest takes the form of Bill 87 and is destined to be a hot topic in the upcoming session. What might this newest incarnation of the Fair Foreclosure Act mean for homeowners?

Consumer advocates are armed and ready. The last attempt to speed foreclosures ended in the Senate last year with House Bill 213 that contained language allowing lenders to speedily foreclose on property that was deemed abandoned. 213 was a hot button topic that led consumers on a protest march on the state Capitol last year. Advocates feared 213 would allow lenders to kick Floridians out of their homes without notice simply because after conducting interviews with neighbors the lender deemed the home "abandoned." But Representative Kathleen Passidomo who filed 87 earlier this month urges consumers that this version has "far more borrower protections than what is current."

House Bill 87 requires lenders to certify that they have the right to foreclose on a property. Proponents hope this step will reduce the paperwork mishaps of previous years that are still gumming up foreclosures in Florida. The bill also requires lenders claiming to hold the original mortgage note to provide detailed facts about the physical location of the note. While this would benefit consumers fraudulently foreclosed on by lenders, the bill offers some protections to lenders that may have many homeowners up in arms.

Namely, 87 prohibits homeowners from suing lenders who have fraudulently foreclosed for a return of their property. These situations are currently sticky situations because the lender has generally sold the property to an unsuspecting third party. This bill limits the homeowners remedy to monetary damages, allowing the purchaser to keep the property.

Condominiums will also receive a benefit should this bill find its way through the legislature. Associations will be allowed to hasten foreclosures when banks are dragging their feet to cut their own costs. Unfortunately Condo associations have been stuck footing maintenance costs when banks carry out lengthy foreclosures on units.

But, consumers may be happy to find that the bill decreases the time lenders have to file deficiency suits against foreclosed homeowners. Currently, lenders have five years to bring suit for the difference between the debt owed and the price the property sold for at auction, 87 would decrease that time to 1 year. If lenders fail to file suit within the shorter time period after a final judgment is entered, homeowners would be protected from the remaining debt liability.

The retroactive nature of the bill also has some on edge. The bill allows some changes to apply to all mortgages, and foreclosure proceedings currently on file, while other provisions would be limited to suits and notes filed after the July 1, 2013 deadline or upon enactment of the bill itself.

Changes may be coming to Florida foreclosure law, and homeowners should be prepared. Please feel free to contact our office to discuss further.

Just think, you come back to your condo or home to find a stranger inside, a stranger who claims that you no longer own your property. The headlines have been bombarded with news of "Loki Boy" and his attempt to adversely possess a $2.5 Million home in Boca Raton, and copycats in Broward and Miami-Dade County. In Broward, the county appraiser's office has received several adverse possession filings over the past few months since Loki Boy's story broke. Broward County Property Appraiser Lori Parrish has had enough of it. She's begging the state legislators to strike the law from the books once and for all.

The adverse possession law allows someone to take ownership of a property they have openly, and exclusively possessed for at least seven years. In addition the "squatters" are required to pay the taxes and liens on the property for those years.

Parrish is outraged that someone would have the audacity to file an adverse possession claim with her office, particularly when the home is not in foreclosure. She calls the centuries old rule a way to "legitimize breaking and entering" when used today. The rule came about when Florida was majorly agricultural land that sometimes fell into disuse. In a time like today, squatters are taking advantage of the floundering foreclosure process.

In Miami-Dade County, a recent news story ran about all the confusion surrounding who actually has the legitimate right to reside in multi-million dollar mansion in Coral Gables. Indeed, our firm has been involved in several "trespassing" episodes and worked with the authorities to ensure proper ownership.

Senator Maria Sachs agrees that something needs to be done; the increase in these types of filings indicates that something must change with the system. In Florida, one of the states hit hardest by the housing crisis, foreclosed property is often left empty while lenders proceed through the agonizingly slow foreclosure process, perfect prey for adverse possessors.

But foreclosure property isn't the only target of these copycats. An adverse possession filing was recently submitted for oceanfront property in Broward. The property is not in foreclosure, in fact it's simply for sale and empty. Luckily for the sellers, police apprehended the individual just days after he filed for adverse possession. Had he not been apprehended the property owners would have had to file a civil suit to eject the squatter.

Today's property owners need to ensure that their property is safe, secure and free of all trespassers. Feel free to contact our office if you are experiencing an issue with squatters.

According to a recently released report from RealtyTrac, six Florida cities make the list for 20 best places to buy foreclosures in 2013. The real estate data focused on four elements to determine which cities present the best opportunities to purchase foreclosures. The four factors include the supply of foreclosures on the market, the percentage of all sales that foreclosures represented, the average percentage discount on the foreclosed property, and the change in percent of foreclosure activity from 2011 to 2012.

Palm Bay-Melbourne-Titusville tops the list of 20 metro areas at number 1, with Lakeland at number 5, Tampa number 6, Jacksonville number 7, Orlando number 9, and Miami rounding out the Florida cities at number 12.

In Miami, the firm determined the city had a 29-month foreclosure supply and that foreclosures accounted for 28.7 percent of total sales in 2012. According to the firm buyers could expect an average discounted sale price of 31 percent on foreclosed property last year.

And with Miami topping the nation in foreclosure activity in 2012 the state is hoping the market will hasten its healing. But amid the flood of foreclosure properties saturating the market it might be difficult.

However, local real estate brokers know that the statistics don't show the true nature of the market. The inventory for foreclosures is actually relatively low despite the staggering statistics reported. And the competition is intense for these properties. With most properties seeing multiple offers, bidding wars between real estate investors, hungry for more inventory, are becoming commonplace. The truths of the matter Being in a foreclosure is a stressful situation. But there are alternatives available to help address the foreclosure.

There are many alternatives to foreclosure, and often times it just takes proper planning to properly navigate against the potential pitfalls. Help is often available to those who seek it. Contact us today, if you're interested in buying a foreclosed property, make sure you've got a game plan because the competition is rough out there.

​The Vidal's, like many Florida residents, are familiar with the woes of foreclosure, and despite their win in the Fourth Circuit Court of Appeals in November the ruling may do little to lift their spirits. The couple's Broward County home was sold in a foreclosure auction in April 2011 to a third party. That's it, done deal, right? Wrong. The couple appealed the ruling of the Broward County Circuit Court and won.

The Fourth Circuit sided with the Vidals agreeing that Liquidation Properties, Inc., who foreclosed on the property, lacked the ability to do so.

Liquidation Properties acquired the Vidal's mortgage from Option One Mortgage Corporation in 2009 but the company lacked standing to bring the suit that ultimately allowed the foreclosure of the home.

The company submitted documents to the Court showing that they had obtained the mortgage on the couple's home but the documents were post-dated. The Court agreed this was insufficient to show that Liquidated Properties actually owned the property before they filed the foreclosure documents. The Fourth Circuit determined that the language of the document that transferred the mortgage to Liquidation Properties was ambiguous, and that left open the possibility that the company post-dated the document for their benefit.

Now, where does this leave the auction buyer? The buyer will most likely be required to surrender the home and take a refund from Liquidation Properties. And while there are whispers that the Broward couple may be able to get the mortgage cancelled because of the Lender's alleged violations of the federal Truth in Lending Act, the court trends show it is unlikely. However, the Fourth Circuit indicated the couple may be able to collect damages for the alleged violations of the Act.

Everywhere the courts are in "watchdog" mode, making sure that lenders are following the black letter of the foreclosure laws, now that the robo-signing fiasco is behind them. And while the Court sided with the Vidal's, this may have little actual benefit to them since the couple is ultimately not going to be permitted to live in the home for free. However, this is still a homerun for homeowners, seeing as this decision could affect the outcomes of many similarly situated families making it harder for lenders to cut corners in the foreclosure process.

Being in a foreclosure is a stressful situation. But there are alternatives available to help address the foreclosure.

There are many alternatives to foreclosure, and often times it just takes proper planning to properly navigate against the potential pitfalls. Help is often available to those who seek it. Contact us today.

While lenders are pleased to have guidelines with the robo-signing controversy resolved, the backlog has given Florida a tidal-wave of foreclosure activity. The number of foreclosure filings, in Florida, increased in 2012 by 53.5 percent over the number of filings made in 2011.

Since the dawn of the housing crisis these daunting figures gave Florida the highest foreclosure rate in the nation. California reported 14 percent of the nation's total foreclosures last year second only to Florida at 20 percent with Ohio ranking third at 9 percent. In Florida, this meant one in every 32 homes had received some form of foreclosure filing in 2012, but most dealt with loans that have long been bad.

Of the 20 urban areas with high rates, Florida had eight within its borders including Miami at number 5, Palm Bay-Melbourne-Titusville tying at number 6, and Orlando at number 8. However, no one should be concerned by the rate as the state is jumping off the artificially low reported activity of 2011 caused by the robo-signing hiatus.

Meanwhile, throughout the country there's been an even split on increased and decreased rates. But in most cases, states that saw an increase over last year's numbers are "judicial" states. Judicial states being those that handle the foreclosure process through the court system proceedings just like Florida, instead of through other quicker processes. However, despite the increase in bank-owned properties, realtors don't expect it to harm the recovering market.

In fact, the Miami Association of Realtors is expected to boast that home sales are beating the 2011 record. The report should show consistent gains for median home and condo prices.

The newest trend: buy at the courthouse. The bank-owned properties saturating the market are quickly being snapped up by professional investors. While potentially good for the market, this strategy may make it difficult for the average homebuyer to get in on the action.

Continue reading "Robo-Signing Fallout Gives Florida Highest Foreclosure Activity in the Nation for 2012" »

Today may be the best time in a generation to re-finance your home. Mortgage rates continue to hover at historic all-time lows. As a result, today's historically low mortgage rates make this the best time to re-finance your home.

More importantly, the Harp 2.0 program is a government sponsored program intended to help many struggling homeowners re-finance their homes even if they are underwater. Individuals that are "underwater" on their mortgage are eligible to participate in the Harp 2.0 program and take advantage of today's historically low interest rates.

Specifically, Harp 2.0 is a program that allows homeowners who are "underwater" on their mortgages to refinance. In particular, it's geared toward people who can't find assistance elsewhere. Put differently, the program is attempting to help individuals who don't qualify for a traditional refinance because their homes are underwater. This is the only program that allows such individuals to refinance their homes.

If you want to learn more about this program, and how it can help you save money, please contact our office today. But in order to qualify for the program, your mortgage must:

• Be owned or guaranteed by Freddie Mac or Fannie Mae
• Have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009
• Not have been previously refinanced under HARP, unless it is a Fannie Mae loan that was refinanced under HARP between March and May of 2009.

You must also be current for the last 12 months on your mortgage, and you should have a credit score of at least 620. Homeowners must also be able to prove their income and assets as these loans are "full docs" in order to qualify for a reduced payment.

But the potential savings could be significant. You owe it to yourself to try and save money on that underwater mortgage by taking advantage of today's low interest rates.

Continue reading "Is It Time To Re-Finance Your Home - Even if You Are Still Underwater on Your Mortgage?" »

Banks had been holding off on increasing the number of foreclosure filings in light of all sorts of paper work issues, including robo-signing allegations.

Even with banks holding back on foreclosure filings South Florida still ranked 10th nationally in foreclosure filings for the third quarter. Palm Beach, Broward, and Miami-Dade counties had 24,767 homes in some stage of foreclosure from July through September, up 11% from a year earlier. Nonetheless, Florida had the nation's highest foreclosure rate in the nation.

In Miami-Dade County, the 90-day mortgage delinquency rate decreased, with 22.89% of mortgage loans being 90 days or more delinquent compared to 25.45% for the same period last year, representing a decrease of 2.56%.

On the other hand, the real estate market continues to show signs of improvement. Contracts for future construction projects in South Florida increased by 66% through the first nine months of 2012 compared to the same period last year.

Non-residential contracts, including commercial and manufacturing, grew 43% to $1.99 billing through September. Contracts for future residential saw the most growth, recording a 90% leap to $2.4 billion.

As for the overall health of the nation's current real estate market, a lot still depends on the economy of the whole. The economy is still not producing jobs fast enough to aid the nation's housing market.

Additionally, continued improvement in home sales and home prices will depend heavily on the volume of foreclosed homes in the housing market. Recent housing data suggests that many lenders have barely made a dent in the overall inventory of foreclosed homes.

As such, there is no question that this is a buyer's market. Indeed, South Florida's real estate market has picked up some steam recently due in large to foreigners investing in South Florida.

Continue reading "South Florida's Real Estate Market Still Ranks High in Delinquencies and Foreclosures, But The Market is Showing Signs of Improvement" »

The economy in Miami might be down, but it is certainly not out. This holds especially true for condo sales in and around the Downtown Miami Area.

According to a recent study by Focus Real Estate Advisors and Goodkin Consulting, sales have increased by 24 percent in the first half of this year to 2,072 units from 1,671 during the first half of 2011.

Condo prices have risen a little over 9 percent in the second quarter compared to last year. Specifically, the average price of a condo in the Downtown Miami area has gone up from $371,205 to $404,927. The average price per square foot for new and resold units has also increased from last year. In 2011, the average price per square foot was approximately $315 dollars; today, that figure has shot up to $338, which adds up to a 7% increase.

The rises in condo prices and sales have much to do with the decline in available inventory for new units. As such, the market has revealed a "grab and go" mentality for individuals looking for an investment opportunity, vacation home, or the like.
Moreover, it should be to no one's surprise that the rental market has also seen a boost as of late. The high demand for urban living and the fact that most of these condos are investment-owned properties has resulted in the average monthly rent in the downtown area going up 4.4 percent.

Put simply, the revitalization of the downtown area coupled with rich foreign investors assures that this increased rental/sales trend will not slow down for the foreseeable future.

Whether you are looking to buy, sell, or rent, often times it takes an informed real estate attorney to help guide you through the process. Consider your different options and do not hesitate to contact us today toll free at 1-866-518-2913 or at 305-263-7700.

Foreclosures rose 11 percent in May in Miami compared with the same time last year. That increase marks the sixth consecutive year-over-year increase of foreclosure filings.

The increase in foreclosure filings in Miami should not come as a surprise. Due to the problems that many lenders encountered last year with the robo-signing scandal, and other similar issues, many lenders simply stopped filing foreclosures. They did so in an effort to correct the problems and address different investigations launched by various state attorneys general brought to protect consumers.

So while the numbers pointed towards a slow down of the foreclosures last year, that slow down was a artificial slow down due to the problems many lenders encountered. However, those problems appear to have been corrected. As such, we should expect a continued increase in foreclosures in Miami through at least the end of the year as many lenders move forward with their foreclosures.

Don't despair if you are one of the many struggling homeowners facing foreclosure. You have options and many alternatives available to help you achieve your objective.

Banks have become more aggressive in the re-financing market through the HARP program. Call us today to assess whether you qualify. Loan modifications are a continued potential avenue of financial relief. Under certain circumstances, many banks are even writing off principal of the original loan. Then there are other options such as the HAFA program associated with short sales which could result in the borrower actually get paid to move.

Florida is a judicial state, which means that when action is taken to foreclose on a home, a notice of lis pendens must be filed in the county where the property is located. A lis pendens in Florida is the necessary formal notice to alert the world of the pendency of a lawsuit concerning title to or possession of land. It imparts constructive notice to the world of the claims of the litigants.

The lis pendens is the formal document that is recorded separate and apart from the underlying complaint and lawsuit. It creates a warning on the title to the property and hinders the ability to sell the property. It is really nothing more than a separate document that is recorded with the Clerk of Court with the sole purpose of alerting the world of the pending litigation involving the property.

Lenders traditionally file a lawsuit to foreclose on a home along with a notice of lis pendens. When this information is filed, it becomes available to the public.

The lis pendens is an important document in any foreclosure action. That is because parties who acquire an interest in the mortgaged property with notice of the foreclosure proceedings are bound by the foreclosure decree just as if they had been named party defendants.

In sum, the filing of a lis pendens typically triggers the start of the foreclosure process together with the filing of the formal complaint and summons.

Being in a foreclosure is a stressful situation. But there are alternatives available to help address the foreclosure.

There are many alternatives to foreclosure, and often times it just takes proper planning to properly navigate against the potential pitfalls. Help is often available to those who seek it. Contact us today.

The Florida Supreme Court recently heard arguments on a foreclosure case that could have sweeping consequences for foreclosures in the entire state of Florida.

What is particularly interesting about this case is the fact that the Florida Supreme Court is hearing arguments on a case where the actual litigants have actually settled their differences. Despite the settlement, the Florida Supreme Court deems the matter important enough to address.

Good thing they did too. Our Miami foreclosure defense lawyers have been addressing the issues associated with the banks efforts to push through foreclosures for some time despite the fact that some banks lack the necessary evidence to prevail in that foreclosure. These issues stem from improper service of process, robo-signing allegations, and misconduct committed by certain law firm that handled the bulk of foreclosures just a few years ago.

These problems have resulted in many banks assessing their chances of success in litigation and deciding that it would be cheaper to just dismiss the lawsuit. Banks then often times attempt to re-file those lawsuit down the road. But they encounter problems when they do so, and those problems may even result in yet another dismissal. And the second dismissal could be fatal to any other effort to attempt to foreclose on the property.

The case that the Florida Supreme Court agreed to hear is addressing just that very issue. The case, known as Roman Pino v. Bank of New York Mellon, originated from the robo-signing scandal that emerged in 2010 when it was revealed that the banks and their law firms had hired and paid individuals to sign documents that they knew nothing about in an effort to push foreclosures through the judicial system.

The original foreclosure action filed against Mr. Pino was dismissed once it appeared as though the loan documents were fraudulently procured. The bank then re-filed the same lawsuit some three months later, but with difference documents. The attorney representing Mr. Pino has argued that the bank should not be allowed to use a voluntary dismissal to dispose of a case that was dependent on fraudulent documents only to re-file the same lawsuit but with different documents.

We have seen the voluntary dismissal tactic used many times with our clients. And that creates opportunities for many struggling homeowners to potentially get back on their feet, or otherwise chart a course of action that is best for them. Our Miami foreclosure defense lawyers have assisted many homeowners in buying enough time to reach the solution that is right for them. There are many alternatives to foreclosure, and often times it just takes proper planning to properly navigate against the potential pitfalls. Help is often available to those who seek it. Contact us today.

Existing homeowners are taking advantage of the refinancing opportunities nationwide.

Looking at statistical data from the past week, close to 77% of mortgage applications consisted of refinancing. As reported by the Mortgage Bankers Association, this is the highest total since March 2nd.

Indeed, HARP 2.0 is intended to help many struggling homeowners take advantage of today's historically low interest rates. To become eligible for the new HARP, a homeowner must have a mortgage sold to Fannie Mae or Freddie Mac on or before May 31, 2009. The homeowner must also be current in their payments and without any late payments in the past six months.

Additionally, some fees were also eliminated on loans that run 20 years or less and lowered on longer term mortgages. In some cases, the homeowner will also no longer need a new appraisal on the home, which should reduce the refinance costs.

Also note worthy is the fact that there is no limit on how deeply underwater someone can be as long as they re-finance into a 30 year fixed mortgage.

The new changes should not only benefit many homeowners, but should also help financial institutions become fewer homeowners will eventually default.

But one of the biggest factors that will drive the success of this new program will be interest rates. Today interest rates are hovering at historically low levels. For instance, the average rate for a 30 year mortgage today is 4.2%. If interest rates rise, however, this program may not be as attractive to many.

Unfortunately, however, the imbalance between refinancing and home buying will continue into the near future. Historically low rates have given people real options that they haven't had in a quite some time. So whether your looking to refinance, enter into a short sale, or buy a new home, the experienced Real Estate Attorneys at Alvarez & Barbara, LLP can assist you today. Pick up the phone and call us today.

Continue reading "Historically Low Interest Rates are Pushing Many Struggling Homeowners to Re-Finance While Banks Still Remain Reluctant to Lend" »

Both the executive and legislative branches of government are making strides as of late to help borrowers get back to a position where they won't be so underwater on their homes. For now, most of these programs will benefit only those with government sponsored loans. Specifically, the new FHA streamline program will help target borrowers with FHA loans that have been looking to refinance their homes, but to no success.

Among the new provisions, the FHA will drastically reduce mortgage fees for those borrowers who qualify for this new program starting June 11, 2012. By reducing the amount of fees, a homeowner will have more incentive to refinance because the amount spent on fees will no longer cut into the amount the borrower was scheduled to save.

Another popular provision, the "no-appraisal rule," will allow homeowners to refinance their homes even if the home is underwater. Put simply, the new program does not require the appraisal of the home. As of today, there are approximately 3.4 million households with qualifying FHA mortgage loans. This program could help each of these households save an average of $250 per month. This program is in addition to the HARP program which is intended to help many struggling homeowners.

By providing an inexpensive method of re-financing, the FHA is preventing the likelihood of foreclosing on responsible homeowners. In order to qualify, you must meet the following criteria: (i) your current FHA mortgage must have been assigned prior to May of 2009; and, (ii) you must be current on your mortgage payments and not have been late over the last 12 months.

What about non-federal loans? Help could be on the way. Three bills were introduced in Congress that could help borrowers with non-federal loans save money through refinancing. The Responsible Homeowners Refinancing Act is designed very similar to the FHA's streamline program, which is helping as many as 3 million home owners save up to $3,000 a year. According to the Bill's sponsors, "[T]he legislation would pay for itself . . . by reducing default rates and foreclosures . . . ."

Continue reading "New Rules are Intended to Help Streamline the Re-Fi Market to Allow Many Struggling Homeowners to Take Advantage of Today's Historically Low Interest Rates" »

In an "all options on the table approach," lenders across the United States are giving cash incentives to borrowers who complete short sales on their properties. A short sale is an alternative to the foreclosure process. It essentially allows a borrower to sell his or her home for an amount less than what is owed on the mortgage.

Even without the incentives, short sales have been increasing every month as of late. And these numbers are likely to increase exponentially with big lenders such as JP Morgan Chase, Bank of America, and Wells Fargo, to name a few, offering anywhere from $5,000 to $35,000 at closing to sellers. Bank of America alone completed 107,000 short sales in 2011, which was up from 92,000 in 2010.

With short sales, lenders are trying to prevent themselves from incurring the financial expense and protracted human work hours involved with foreclosure litigation. In most instances, a short sale coupled with incentive payments to borrowers, can save lenders money compared with the expenses. There are even federal programs that borrowers could qualify for that may provide them with financial relief if the short sale is approved.

According to a 2008 survey by the Joint Economic Committee of Congress, lenders paid an average of about $50,000 when a foreclosure takes place. With the cost of legal services on the rise, it's no wonder why lenders such as Coldwell Banker are opting to pay up to $20,000 in incentives versus going through a long foreclosure process.

For now, incentive payments are far and few between; however, lenders will have to keep this option open because loan modifications are not always available to borrowers . And banks are well aware of the fact that many of these mortgage payments are long over due. In Florida alone, half of its loans in the foreclosure process are two years past due.

Continue reading "Banks Paying Money to Borrowers to Push Short Sales Through to Sale" »

In what surely is a sign of change in South Florida, foreclosure filings decreased by more than half at the end of 2011 compared to 2010. However, the decrease is somewhat deceptive because the results are in part due to the average length of time it takes to process a foreclosure in Florida. Specifically, Florida's foreclosure process is third in the nation, behind only New York and New Jersey.

For the last ten years, Miami-Dade has found itself in the midst of one the largest residential development booms in all of Florida. As such, it should come to no one's surprise that 1 in every 85 homes file for foreclosure. Rounding out South Florida is Broward and Palm Beach County, which see approximately 1 in every 98 and 105 homes file for foreclosure, respectively.

Palm Beach County saw the largest change out of the big three in South Florida, with its filings falling off by more than half. Miami saw the smallest decrease at 8.24 percent compare to last year, followed by Broward at 33.94.

Again, these numbers are deceptive. We must still take into account the overall volume of foreclosure filings. And the numbers are staggering. It is true that related foreclosure filings dropped 57 percent in 2011 compared to 2010; however, if we compare the 2011 numbers in Miami-Dade to those in 2006, foreclosure filings are still astronomically higher - 133 percent higher to be exact.

The same holds true for both Broward and Palm Beach. Compared to 2006, Broward foreclosure filings are up 108 percent, with Palm Beach surprisingly up 190 percent since 2006. Just another prime example of how deceiving the numbers are considering Palm Beach was looking like the real winner of the three.

Even though the market seems to be shifting in a positive direction, properties on the brink of foreclosure still make up more than 50% of available properties across South Florida. This makes it the perfect time to determine whether you need a real estate attorney, or just need to talk to some one to assess your legal rights.

Continue reading "Foreclosure Filings Are Decreasing" »