Miami Real Estate Attorney Blog

Fraudsters often target those who find themselves in difficult financial situations. During the ongoing foreclosure crisis we have seen scammers take advantage of people by promising help with loan modifications. Now, the Federal Trade Commission is intervening to prevent the public from becoming victims in loan modification scams.

Loan modifications are currently a haven for fraud. If you feel as though you have been victimized by mortgage fraud, don't despair. Our Miami mortgage fraud lawyers will carefully evaluate the facts and legal issues in your case. If we believe that you are a fraud victim, we are prepared to aggressively represent you in fighting for your rights and seeking justice in the legal system. If you are a victim of fraud, we will use our legal experience to stand up for your rights. We want to help you keep your home.

Loan modifications are currently a haven for fraud. Many fraudsters make every attempt to make themselves look completely legitimate. They will give themselves names that look like federal foreclosure intervention programs such as "Making Home Affordable" or "Home Affordable Modification". Some scammers even go so far as to use photos of President Barack Obama or the seal of the United States in order to promote their scams.

However, effective January 1, 2011, the Federal Trade Commission (FTC) has adopted new rules to prevent homeowners from falling prey to loan modification scams. Under the new rules a loan mod agency cannot accept up-front payments. Further, they also must implement mandatory disclosure rules. For example, mod agencies will be required to make clear that they are not connected with a government agency or program. Also, they will have to disclose that you're free to reject any offer from the lender without having to pay the agency a fee.

The FTC believes that fake modification agencies have stolen millions of dollars from homeowners who are severely delinquent or deeply underwater in the past two years. Sadly, as the federal government has broadened its efforts to establish legitimate foreclosure relief programs the amount of fraudulent schemes has risen. So far, the FTC has brought more than 30 cases against these operations. With these new rules, the FTC will have finally have a way to control the widespread advance-fee requirements.

Continue reading "New Rules Imposed in an Effort to Eliminate Fraud during the Loan Modification Process" »

"Shadow inventory" is beginning to have an effect on home prices. According to the Miami Herald, the prices of existing South Florida homes increased as the number of sales dropped in October. This drop in home sales comes amidst a slowdown in foreclosures by banks due to alleged irregularities in procedures.

It is believed that this trend is temporary now that foreclosures have resumed. Nevertheless, the slowdown could lead to an increase in the amount of homes that are "shadow inventory" and slow down a long-term recovery. The term "shadow inventory" describes homes which have already been repossessed by banks, but have yet to be listed for sale.

In Miami-Dade County, single family home sales were down 6.2 percent from September and down 4 percent from last year. The only year-over-year increase occurred in Miami-Dade's condo market. Condo sales were up 17 percent from last year, but down 9.1 percent for the month.

In Miami-Dade County, the median price for a single family home sold in October was $199,100. This represents a 5.9 percent increase from September. For October condo sales prices rose 8.4 percent to $107,000.

The increase in prices can be attributed to the fact that banks have dramatically reduced the amount of properties they list for sale with an agent. As such, since less lower-priced homes are being sold, median prices increased.

The long-term effects of the foreclosure suspensions are not clear. Some experts envision a years-long waiting period before the local housing market returns to a normal level. Others believe the effects will be minimal.

Continue reading "Miami's Housing Recovery Is Being Impacted by the Growing Number of Foreclosures and the Ever Increasing "Shadow Inventory"" »

David J. Stern, the reputed "foreclosure king", has resigned as President and CEO of DJSP Enterprises, Inc. His resignation comes amidst an ongoing investigation which is exploring whether accusations of false documentation in foreclosure cases his firm handled are true. Stern stated he is resigning in order to focus on the operations of his law firm.

David Stern's office has been at the center of many accusations of foreclosure fraud in light of the ongoing "robo signing" revelations. If you feel as though you have been victimized by mortgage fraud, don't despair. Our Miami mortgage fraud lawyers will carefully evaluate the facts and legal issues in your case. If we believe that you are a mortgage fraud victim, we will aggressively represent you in your case against the predatory mortgage lender -- fighting for your rights and seeking justice in the legal system. If you are a victim of mortgage fraud by a bank or mortgage lender, we will use our legal experience in real estate and mortgage fraud to stand up for your rights. We want to help you keep your home.

DJSP Enterprises, a publicly traded company, provides support services and document handling to Stern's firm, the Law Offices of David J. Stern, PA. Until recently, this was the largest foreclosure firm in the state. However, clients such as Fannie Mae and Freddie Mac have left Stern as he faces an investigation by the Florida attorney general.

Stern is being replaced by Stephen Bernstein, the company's interim chairman. Effective November 19th, he is the permanent chairman, president, and CEO.

In January 2010, Stern made $58.7 million in cash and stock interest when DJSP Enterprises went public. The company once employed 1,000 thousand people, but the company has announced more than 500 layoffs this year.

The problems don't stop there. DJSP Enterprises reported it had defaulted on a line of credit with Bank of America. The stock's value has plummeted throughout the year. The stock's 52 week high was $13.65 and its low was 33 cents. As of Tuesday evening, the shares were trading at 41 cents.

While Stern states he is resigning in order to focus on his law firm his resignation is most likely a result of the recent problems which have led to the State attorney general's investigation. Nevertheless, Stern will have all his time to solely devote to his law practice. Its certainly possible that the alleged frauds and oversights may have occurred because he may have been stretched too thin between DJSP and the law firm.

Continue reading "Florida's "Foreclosure King" Facing More Problems and Troubles" »

Recent figures reveal that Florida ranks first in the nation as it relates to those whose mortgages are seriously delinquent. But that is not the only dubious distinction where Florida tops the nation. Now, reports indicate that Florida can also claim first place in the number of mortgage frauds.

If you feel as though you have been victimized by mortgage fraud, don't despair. Our Miami mortgage fraud lawyers will carefully evaluate the facts and legal issues in your case. If we believe that you are a mortgage fraud victim, we will aggressively represent you in your case against the predatory mortgage lender -- fighting for your rights and seeking justice in the legal system. If you are a victim of mortgage fraud by a bank or mortgage lender, we will use our legal experience in real estate and mortgage fraud to stand up for your rights. We want to help you keep your home.

According to MortgageDaily.com, which tracks criminal and civil cases across the country, Florida has the highest third quarter score on its Mortgage Fraud Index. The website gave Florida a fraud index score of 143. This easily surpassed numbers two and three on the list. Coming in second place is California with a score of 100. New York is in third place with a score of 70. In terms of real dollars, there were $110 million in mortgage fraud accusations levied in Florida.

Many of the mortgage fraud busts have happened in South Florida, and specifically in Miami. Some of these busts were frauds which were perpetrated with false loan applications and in other cases involving straw buyers. In some of these cases both mortgage brokers and title agents were picked up in these busts, and many attorneys have even lost their ability to practice law in Florida as a result of the rampant fraud.

Continue reading "Florida Ranks No. 1 Nationally in Mortgage Fraud" »

According to the latest figures, Florida still leads the nation in the percentage of homeowners who are seriously delinquent on their loans.

Down from 20.13 percent, 19.52% of borrowers were either 90 days past due or in foreclosure in the third quarter. When adding in borrowers who are 30 and 60 days late, one quarter of Floridians are behind on their home loans.

Unfortunately, Florida holds the number one spot with a sizeable margin. In Nevada, the state with the second greatest amount of homeowners who are seriously delinquent, the rate stands at 17.83%. Illinois ranks third with a 10.77% of homeowners that are seriously delinquent.

The current real estate market, and ongoing foreclosure crises, presents all sorts of issues that must be properly navigated. Our Miami foreclosure defense lawyers have assisted many parties 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.

There are many factors contributing to Florida's nation leading delinquency rates. They include a weak job market, weak economic recovery, and a major drop in home prices. Consequently, Florida's real estate market remains unsettled in large part due to the continued foreclosure crises.

For instance, the economic recovery that is currently taking place is largely a jobless one. In fact, since 2007, when the recession began, South Florida's workforce has only recovered to about 90% of where it was before the recession began. Since South Florida's economy was so dependent on the housing market, it will likely take some time for South Florida's economy to recover given the ongoing real estate crisis that is impacting all of us on a daily basis here in South Florida.

Additionally, another potential problem for our local economy, an economy that is still very dependent on real estate development, is that many lenders are increasingly reluctant to make new construction loans to developers. Now that certain tax credits have expired, coupled with the increasingly sluggish real estate market, builders continue to see stormy days ahead. Indeed, increasingly high unemployment rates, coupled with stringent mortgage lending guidelines, are keeping many prospective purchasers on the sidelines.

Consider Your Options. Contact Us Today.

We have been successful in defending many foreclosure cases when given an opportunity to develop a plan to properly defend the foreclosure.

If you are on the brink of foreclosure, need a real estate attorney, or just need to assess your legal rights, please contact our office today.

Call us today toll free at 1-866-518-2913 or at 305-263-7700.

Unique issues continue to arise every day during the continued and growing foreclosure crises. We recently discussed the erosion of basic due process rights as a direct result of Florida's "rocket dockets." But another growing concern centers on the decision made by many Florida Judicial Circuits to close foreclosure proceedings to the public at large. As a result, Florida's Supreme Court's Chief Justice recently wrote to all of the state's local chief judges.

The Chief Judge's letter is being sent as a direct response to a letter from the Florida Press Association's general counsel and other organizations informing the Chief Justice of possible instances in which judges have prohibited members of the public from attending foreclosure proceedings. In his statement Chief Justice Canady expressed deep concern about the allegations.

In his letter to the Chief Justice the attorney for the Florida Press Association listed several instances that have occurred since August. These allegations include:

1. A court observer that called a courthouse about the rules regarding attendance at foreclosure proceedings was told the hearings are not open to the public.

2. A woman representing herself in a foreclosure proceeding was told by a court security officer that she could not attend proceedings because only attorneys were allowed to attend.

3. Another court observer was informed that foreclosure hearings were held in private chambers and not open to the public.

4. An attorney was "castigated" for attending a hearing with a reporter from Rolling Stone magazine.

In response to those allegations, the Chief Justice's letter told the state chief's judges to speak with clerks and bailiffs to ensure visitors and callers are provided with accurate information regarding attendance at foreclosure proceedings. He also stated that the goal of resolving 62 percent of foreclosure proceedings should not keep judges from ruling on each case fairly and on the merits.

The current real estate market, and ongoing foreclosure crises, presents all sorts of issues that must be properly navigated. Our Miami foreclosure defense lawyers have assisted many parties 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.

Continue reading "Foreclosure Proceedings Must Remain Open to the Public" »

When you are facing foreclosure, you may feel powerless. A mortgage foreclosure is a frightening experience, especially if you are currently unemployed or have dealt with some other life altering factor in your life that has left your finances in ruin.

Yet, you have rights and options. At the law firm of Alvarez & Barbara, LLP, we stand up for your rights -- and your home. Explore your options, protect your rights. Contact our Miami foreclosure defense attorneys for a free consultation.

Helping You Assert Your Rights

Asserting your rights will not only give you the chance to save your home; it may also increase the amount of time that you have in your home. You may also have many alternatives available to potentially avoid foreclosure.

Consider these rights that homeowners have during foreclosure:

• You have the right to be notified of the foreclosure. Lenders must give you written notice that they plan to foreclose on your home.

• You have the right to stop foreclosure by paying off all of the past due amounts you owe on your home mortgage.

• You have the right to discuss the foreclosure with your mortgage company. If you are unable to pay what you owe on the house, you may be able to negotiate alternative payment options (a loan workout/loan modification).

• You may be able to privately sell your home to pay back mortgage debt. However, selling your home may not discharge the remaining debt you owe on the home (if it sells for less than you may need to pay back the loans).

• You have a right to contest the foreclosure process. Did the mortgage company properly notify you? Is there evidence of predatory lending?

• If your home is sold, you have a right to any money that comes of the sale that is not necessary to pay back your mortgages and late fees.

• You have a right to hire an attorney. Sometimes, the best defense against foreclosure is a Miami foreclosure attorney.

The current real estate market, and ongoing foreclosure crises, presents all sorts of issues that must be properly navigated. Our Miami foreclosure defense lawyers have assisted many parties 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.

Continue reading "What Are Your Rights In Foreclosure? Can You Save Your Home? Seek the Aid of a Foreclosure Defense Lawyer Today." »

"We who labor here seek only truth." With these immortal words, Courthouses around the Country, including those right here in South Florida, stand as imposing places where justice is done, right? Wrong!! In these days of fast food justice and "Rocket Dockets", the truth is the furthest thing on the minds of the Judiciary and their over-zealous support staff.

Not even the mounting foreclosure crisis, the investigations launched by all 50 State Attorney Generals into the faulty, and arguably criminal foreclosure practices employed by the Nation's largest banks and the Federal Government's recent criminal investigation, in conjunction with "robo signing" allegations, coupled with many recent appellate courts vacating foreclosure judgments on grounds that the trial courts failed to do their jobs in ensuring that the bank has all the necessary evidence to foreclose on the property, is enough to get the Judiciary to actually "seek only the truth".

Take for example, the story of a local couple whose home is in foreclosure. The Bank pursuing the matter halted its pursuit of foreclosures while it performs an internal audit of its documents and practices. In other words, the Bank itself is saying..." hold on everybody while we seek the truth." However, the fast food justice kitchens presiding over these cases are not interested in the truth. They are only interested in clearing their dockets. In an effort to ease the load on the dockets of Judges, some Judicial Circuits have implemented a "foreclosure master calendar". These master calendars (and their masters) are second to none at violating the rights of homeowners and insuring that due process is due to no one.

In the case of the local couple described above, the over-zealous, faceless foreclosure master calendar took it upon itself to schedule a hearing (without any consideration for the desire of the parties or the schedules of their lawyers) on the Bank's "knock out blow" motion, which by the way, not even the Bank wanted heard as the Bank realizes that there are problems with the procedures employed to attempt to foreclose on the couple's home. This type of judicial activism is tantamount to judicial bullying, and should not be tolerated in Florida are in the United States.

Let's not kid ourselves either, the Court did not set the Bank's motion for hearing so that it could be denied for the patent deficiencies found in the Bank's filings. Quite the contrary, it was set for hearing so that the Judge could blindly grant it and rubber stamp a Judgment of Foreclosure, thereby crystallizing another injustice like the ones suffered by so many other homeowners.

This cowboy courthouse antic forced the lawyers for the Bank and the homeowners to file a JOINT motion to cancel the hearing. That was no typographical error, a JOINT motion by the Bank's and Borrower's counsel was filed to cancel the hearing. The ultimate irony. The Bank and Borrower actually working together to ensure that injustice is not done. Working together against the Judiciary, the very people who are supposedly laboring to seek only the truth.

Continue reading "Florida's "Rocket Dockets" are Eroding Basic Due Process Resulting in Our Miami Foreclosure Defense Lawyers to Decry the Growing Judicial Intolerance to Foreclosures" »

A federal judge in the Southern District of Florida, in Miami, dismissed a foreclosure lawsuit against the Shore Club Hotel in Miami Beach. The pursuit of this foreclosure in federal court is not the norm because most foreclosures are filed in county circuit court. Nevertheless, this victory for the Shore Club may be short-lived because the lender has vowed to continue to attempt to seize the iconic hotel.

The current real estate market, and ongoing foreclosure crises, presents all sorts of issues that must be properly navigated. Our Miami foreclosure defense lawyers have assisted many parties 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.

As for the Shore Club case, back in March, the representative of commercial mortgage-backed securities fund serviced by local company, LNR Partners, filed a $126 million foreclosure lawsuit against the hotel's owner, Philips South Beach. Philips South Beach responded to the lawsuit with a counterclaim. The counterclaim alleged that the fund organizers and LNR Partners gave confidential business plans to the developers of a rival South Beach hotel, The W. They also sought to have the case dismissed by arguing that federal court was not the right place to file this lawsuit.

US District Judge Cecilia Altonaga agreed with the owners of the Shore Club and dismissed the case. The judge stated that although the plaintiffs resided in a diverse group of states across the country, this simply was not enough to make federal court the proper venue. The judge ruled that because some of the plaintiffs resided in the hotel owner's state of incorporation there was a lack of complete diversity.

According to reports, the hotel's owner has not made a mortgage payment on the hotel in more than a year. It was appraised in 2009 for $86 million.

Continue reading "Miami Federal Judge Tosses Foreclosure Lawsuit involving the Shore Club" »

Real estate values continue to decline in South Florida as the local real estate market is still searching for its bottom.

Of all the South Florida homes that were sold between June and September, nearly half of them were sold for a loss. Specifically, 45.2% of all South Florida homes were sold for a loss in the last quarter.

The continued slide in real estate prices have further increased the amount of homeowners that are currently underwater on their mortgage. Since the peak of real estate values back in June 2006, home values have dropped 53.5% in South Florida. This has left almost half of all single-family homeowners underwater in South Florida. Put differently, approximately 42% of all single-family homeowners in South Florida currently owe more on their mortgage than their home is worth.

Many factors are contributing to the continued decline in real estate prices in South Florida. For instance, the continued high rate of foreclosures coupled with a weak job market are both continuing to influence housing prices, and the housing market, as a whole.

Short sales also continue to dominate the market. Indeed, sellers continue to slash their prices, making it a very attractive buyer's market. In fact, many buyers are finding very attractive deals in this market. That is illustrated by the fact that nearly 21% of all south Florida home sellers reduced prices in the third quarter. Moreover, short sales and foreclosures continue to account for most real estate transactions and are currently accounting for more than 60% of all south Florida sales.

The current real estate market, and ongoing foreclosure crises, presents all sorts of issues that must be properly navigated by a struggling homeowner. 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.

Continue reading "South Florida Real Estate Values Continue to Plunge as Foreclosures and Short Sales Continue to Drive the Market" »

Donald Trump is no longer affiliated with the unfinished luxury condo hotel tower on Fort Lauderdale beach that was to carry his name and that now faces foreclosure. The building was to be called the Trump International Hotel and Tower. This luxury condo hotel was going to be one of Fort Lauderdale's most glamorous locations, but today is in the midst of one of Ft. Lauderdale's stormiest legal battles. The legal battles include a foreclosure filed by the lender, many prospective purchasers trying to get their deposits back.

Our firm has a proven track record in the area of deposit recovery. While we are currently aggressively representing the interests of many purchasers at the St. Regis Bal Harbour, ICON Brickll, the IVY, and other prominent South Florida projects, recover their pre-construction deposits, we previously spearheaded many of the defenses that the developers are currently using against purchasers.

Yeas ago, more than 100 people placed deposits of 20% of the purchase price in order to buy condos in the 24 story tower with the hopes of purchasing what was supposed to be one of Ft. Lauderdale's most glamorous new properties. Studios and one and two-bedroom units were priced from about $500,000 to more than $3 million per unit.

The building, however, was never finished. Consequently, many buyers have filed suit in an effort to get their deposits back and some have even placed liens on the 298 unit project that was supposed to be finished back in 2009.

Many buyers alleged that the developer misrepresented Donald Trump's involvement in the project. Some suits even named Donald Trump personally and allege that Donald Trump and the developer both engaged deceptive advertising practices.

In support of that argument, the buyers point to promotional literature that states that Donald Trump was "committed to personal and direct involvement in everything his name represents" and described the project as a "signature Trump development."

Continue reading "Deposit Dispute Saga Rages on with Donald Trump over the Failed Trump International Hotel and Tower in Ft. Lauderdale as the Bank Moves to Foreclose on the Project While Buyers Attempt to Get their Deposits Back" »

According to a complaint filed in the Southern District of Florida, some individuals are asking for their homes back after their mortgages were already foreclosed. The complaint alleges that the foreclosures were illegal. The attorneys representing the Plaintiffs are seeking class action certification.

The current real estate market, and ongoing foreclosure crises, presents all sorts of issues that must be properly navigated by a struggling homeowner. 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.

Nevertheless, it is highly unlikely courts will force out new owners of these homes if they bought them in good faith. If proven that these foreclosures were indeed illegal, the homeowners may have a greater chance of regaining their homes if the property is still in the bank's possession.

The suit names three defendants. They are BAC Home Loans Servicing, a Bank of America subsidiary, Deutsche Bank National Trust Company, and US Bank National Association. The complaint alleges that employees of these lenders falsified and improperly notarized documents which were filed with courts.

Spokesmen for these banks claim their companies acted as trustees for the trusts holding the mortgage securities. Accordingly, they claim it was not them but the loan servicers and foreclosure law firms they hired that actually handles the procedures mentioned in the complaint.

This is one of a few recent class action filings showing up around the country as Attorneys General of all 50 states continue to investigate and uncover questionable foreclosure procedures practiced by lenders, loan servicers, and their law firms.

In a similar class action lawsuit filed in Maine, plaintiffs are seeking to halt ongoing foreclosures and evictions. If the homes have already been taken in alleged illegal foreclosures, the suit is attempting to recover monetary damages for these former homeowners.

Consider Your Options. Contact Us Today.

We have been successful in defending many foreclosure cases when given an opportunity to develop a plan to properly defend the foreclosure.

If you are on the brink of foreclosure, need a real estate attorney, or just need to assess your legal rights, please contact our office today.

Call us toll free at 1-866-518-2913 or at 305-263-7700.

The housing market today remains sluggish and continues to encounter many problems and obstacles. They include a weak economy, sluggish hiring, tight mortgage underwriting, falling home prices, and slowing home sales.

But probably the most disastrous factor facing our current housing market is the potentially devastating number of foreclosures that will likely occur over the next few years.

Due in large part to the ongoing foreclosure crises, many analysts are projecting home prices to slide another 8% nationally. Today, homes are cheaper, and while that is fairly good for buyers, the cheaper homes also speak to the growing consensus that our housing market is still far from stabilized. Indeed, home prices continue to fall because sales are not taking off. Without buyers, the market cannot bottom out.

Of course, nobody is buying homes when they can't find a job. And still more people cannot hang on to their homes because they're out of work. The continuing economic woes will also likely result in nearly 1,000,000 homes being repossessed this year.

On the bright side, many foreign buyers have continued to purchase properties in some of the hardest hit areas such as right here in South Florida. But if the "robo signing" problems continue, those investors may flee the market. And if they do, that will continue to foil the housing recovery in Florida, and nationally.

The current real estate market, and ongoing foreclosure crises, presents all sorts of issues that must be properly navigated by a struggling homeowner. 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.

Continue reading "The Florida Real Estate Market Remains Unsettled Due in Large Part to the Continuing Foreclosure Crises" »