Miami Real Estate Attorney Blog

Miami continues to lead the three counties in South Florida in foreclosures. In May, Miami had 1913 foreclosures, with Fort Lauderdale logging 955 and West Palm Beach reporting 747 new foreclosures.

But if there is some good news in those numbers it is that those numbers are way down when compared to the same period last year. Foreclosure activity has slowed down in the recent months. The slow down is a direct result of allegations of robo signing, fraud, documentation errors, issues with process servers, problems servicing loan modifications, and other similar issues, have prompted many lenders to slow down the foreclosure process which in turn has slowed down the housing recovery.

On the other hand, and in May, South Florida's three counties combined to produce more than 6600 foreclosures. Miami Dade county had 2768 new foreclosures, a drop of more than 60%, year-over-year, while Broward county had 1872 new foreclosures and Palm Beach county had 2006. Moreover, the inventory of properties in foreclosure has also declined during the past six months.

But foreclosure processing delays continue to mask the true face of the foreclosure situation. Nationally, foreclosure activity declined, with foreclosure filings i.e. default notices, scheduled auctions, and bank repossessions, reported a 2% decrease from April and a 33% decrease from May of 2010.

Reports also show that one in every 605 household nationally received a foreclosure filing during the month of May.

And despite a 62% decrease from May of 2010, a total of 19,192 Florida properties received a foreclosure filing in May, the second-highest a total nationally.

Continue reading "Foreclosure Slowdown Continues in Miami and South Florida" »

In 2010 state legislators awarded Miami Dade County close to $1 million in an effort to help eliminate the backlog of foreclosures. The objective was to have as many foreclosures in and out of the judiciary within a year.

That funding has now ended. And as of today, Miami Dade County have more than 58,000 foreclosure case is pending.

Foreclosure activity has slowed down in the recent months. The slow down is a direct result of allegations of robo signing, fraud, documentation errors, issues with process servers, problems servicing loan modifications, and other similar issues, have prompted many lenders to slow down the foreclosure process which in turn has slowed down the housing recovery. Florida's Attorney General eventually announced an investigation into these alleged practices.

Nonetheless, our housing recovery cannot fully get underway until the back log of foreclosure, and the so called shadow inventory, are all disposed of. Many are estimating that with so many foreclosures still looming, that the housing market will not fully recovery for at least another 24 months.

Starting July 1st, Miami Dade County foreclosures courts are set to undergo significant transformation when last year's emergency funds dry up and the overburdened judicial system is forced to function with less money. They proposed changes that are coming to Miami Dade county were recently outlined by the courts Chief Judge at a recent town hall meeting in the courthouse.

Given the expiration of the emergency funds that were given last year, and effective July 1, Miami-Dade will now handle foreclosures in the following manner:

• Judges will be pulled from other divisions that will hear foreclosures that are more than two years old, and these judges will be replacing the retired judges that were hired last year to specifically handle the foreclosure file.

• Law School volunteers will be in charge of screening case files, replacing the paid screeners that were funded by the one time grant.

• Hearing notices will be sent via e-mail. The paper system will be replaced with an electronic system that will hopefully save the judiciary time and money.

• Possibly most significantly, lawyers for the banks will now only have one opportunity at a summary judgment hearing. If the summary judgment is denied, or if the paperwork as incomplete for whatever reason, then the case will proceed to trial. There will be no second bite at the apple with respect summary judgment hearings.

Continue reading "The Manner in which Foreclosures are Handled in Miami Dade County is About to Change" »

The federal government has sued Deutsche Bank for alleged widespread fraud that resulted in millions of dollars paid to the bank. According to the lawsuit, and as a direct result of the purported fraud, the bank padded its pockets with undeserved income as it repeatedly lied to benefit from a government program that insured mortgages.

The lawsuit is seeking to recover hundreds of millions of dollars the federal government had to pay in insurance proceeds when many borrowers defaulted on their mortgages. The lawsuit alleges that the bank repeatedly and brazenly engaged in a pattern of reckless lending for mortgages that were really ticking time bombs, sometimes failing to even verify that the applicant had a job.

This lawsuit is the direct result of the ongoing investigation of federal regulators and Attorney General's in all 50 states. They have been investigating lenders accused of cutting corners and using forged documents to foreclose on many homeowners. In some cases, employees of financial institutions engaged in so-called robo signing.

Moreover, allegations of robo signing, fraud, documentation errors, issues with process servers, problems servicing loan modifications, and other similar issues, have prompted many lenders to slow down the foreclosure process which in turn has slowed down the housing recovery. Florida's Attorney General eventually announced an investigation into these alleged practices.

The lawsuit is specifically seeking to recover more than $386 million at the Department of Housing and Urban Development has paid out in insurance claims and related cost. HUD sets the rules for the FHA mortgage insurance program, including requirements relating to the adequacy of the borrowers income to meet the mortgage payment requirements, the borrower's credit worthiness and the appropriateness of the valuation of the property being purchased.

In this instance, the federal government is alleging that the bank failed to comply with those requirements. Moreover, the federal government is also alleging that the bank just flat out lied when asked instead requirements were actually being complied with. Indeed, the quality control violations were egregious, and that includes the bank's failure to review all early payment defaults and failed to implement minimal quality control processes. The lawsuit further alleges that the bank actually hired an outside vendor for purposes of reviewing its loan process, but failed to adherence to any of the recommendations adhered to by the third-party vendor. Indeed, the lawsuit alleges that the bank received the recommendations and never even opened the letter.

Today's current real estate market, and ongoing foreclosure crises, presents all sorts of issues that must be properly navigated. 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 housing market remains unsettled in large part due to the continued foreclosure crises.

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.

According to recent news reports, nearly half of the mortgages in South Florida are currently underwater. Specifically, 46% of all homes in Miami are currently underwater, while 49.4 % of homes in Ft. Lauderdale are underwater.

Nationwide, 22.7% of all residential properties with a mortgage was underwater. However, that figure was down from 23.1% in the fourth quarter of 2010.

Nationally, Florida was 3rd with 46% of all residential properties currently underwater. Florida ranks behind Arizona (50%) and Nevada (63%).

The current real estate market, and ongoing foreclosure, and housing, 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.

Good news for those who have strategically defaulted on their mortgages and are worried about their credit. A new study is set to be released which reveals that people who default on their mortgages, and not on other debts, are not as risky as once thought. Let's hope lenders will take this into account when looking at someone's credit history.

A strategic default is a decision by a borrower to stop making payments on a debt despite having the financial ability to make the payment. A Wall Street Journal report recently estimated that 1 in 5 mortgage defaults are "strategic". Indeed, many are anticipating that the next wave of foreclosures will consist of more and more individuals seeking to walk away from homes that are currently underwater.

Transunion, one of the largest credit reporting agencies, conducted research which shows that those who only default on mortgages are less likely to default later on new car loans or credit cards than are people who have defaulted on their mortgage and some other loan at the same time.

The study also revealed that mortgage-only defaulters saw their credit scores rebound faster than people who have defaulted on multiple loans. This includes people who have filed for bankruptcy.

This research is valuable to lenders because mortgage-only defaulters are certainly going to be a major part of the market in the future. This is a result of many homeowners who have elected to make "strategic defaults", which is when a homeowner who could afford to pay their mortgage defaults because their home's value tanked. Another study shows that strategic defaulters have better credit histories than other mortgage defaulters. It also showed that strategic defaulters are savvy about credit.

Today's current real estate market, and ongoing foreclosure crises, presents all sorts of issues that must be properly navigated. 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 housing market remains unsettled in large part due to the continued foreclosure crises.

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.

In April, new home sales rose 7.3% to a seasonally adjusted annual rate of 323,000. Experts opine that a healthy real estate market would produce a pace of about 700,000 new-home sales a month.

These days people have a little incentive to buy new homes because they are relatively expensive. Plus, we are seeing more renters in today's real estate market as opposed to folks purchasing a new home.

Nonetheless, new-home prices are more than 30% higher than the median price of re-sales. This is twice the normal markup.

Potential home-buyers are favoring older, discounted homes because that is where the deals are. Especially in light of the large inventory of foreclosed properties.

Certainly it's a positive sign that we are seeing a rise in new home sales. However, the fact remains we are still in a depressed housing market. As proof of this, new home builders are keeping the supply of new homes at artificially lows. The high unemployment rate, tight credit and the fear that home prices will fall even further is also preventing a full-fledged recovery.

If you're in the market to buy a new home or condo, now is a great time to do so. With sale prices continuing to drop, potential buyers need to take advantage of the current market conditions.

Today's current real estate market, and ongoing foreclosure crises, presents all sorts of issues that must be properly navigated. 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 housing market remains unsettled in large part due to the continued foreclosure crises.

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.

With more homes falling to foreclosures, many formerly-owned homes are now finding themselves occupied by renters.

The shift from owner-occupied homes to renter-occupied homes has no end in sight due to the ever lasting housing-market collapse and recession that is currently plaguing the United States. Nationwide, 34.9% of occupied homes - including houses, condos, and apartments - were rented in 2010, up from 33.8% in 200.

Florida, a state that has been hit relatively hard by foreclosures, has seen a 5% growth in renter-occupied housing. Prior to 2006, the renter-household market was "fairly stable," but since 2006, the U.S. has seen an increase of about 692,000 house rentals a year. This figure is astronomical when comparing it to the number of owner households, which is falling at an average of 210,000 a year.

Several factors will boost rental growth for years to come, including continued forecloses, continued drops in home prices that frighten buyers and potential cuts to government subsidies supporting home ownership. Despite a large percentage of renters favoring home ownership over renting, renters will have to contend with the current status quo until the housing market recovers.

A main culprit behind the housing market's continued struggles, aside from the real estate market's collapse, involves all of the recent scandals that have plagued our real estate market.

For instance, allegations of robo signing, fraud, documentation errors, issues with process servers, problems servicing loan modifications, and other similar issues, have prompted many lenders to slow down the foreclosure process which in turn has slowed down the housing recovery.

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.

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.

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.

We recently discussed record low home prices. However, there is some good news - property values actually increased in 20 South Florida cities in 2010. This is great news for some property owners and cities who have been hard hit by less tax revenue.

In Miami-Dade, property values were still down 3.3 percent, but this is much better than 2008 and 2009. In those years there was a double digit decline in property values. The 2010 figures show that the worst days of the housing market crash may have passed. However, a full recovery still seems distant.

Downtown Miami saw the largest year-over-year increase in the area. In 2009 the tax base shrunk 11.2 percent, but 2010 brought a 10.9 percent increase. Nevertheless, the City of Miami saw a 3.8 percent decline.

So, what's the forecast for 2011? Its too early to tell, but whatever happens next will be determined by the course of the foreclosure crisis. In South Florida, 14.4 percent of homeowners are behind on their mortgages and there are thousands more that are underwater, which means there are many more properties that are set to enter into foreclosure.

It seems these days that all we are seeing is bad news for the real estate market, so this slight bit of good news is a breath of fresh air. What will ultimately stabilize property values is the end of the foreclosure crisis. One major driver behind the decline in property values is that many properties have fallen into disrepair because they have sat vacant for long periods of time. Once a vacant property is occupied and the new owner fixes it up, we should see property values stabilize.

As foreclosures will continue because of homeowners who can't simply afford their mortgages or those who decide to make strategic defaults, many homeowners will need representation in a foreclosure proceeding. If you are one of these homeowners, don't hesitate to contact Alvarez & Barbara, LLP. We have successfully defended these cases for our clients by finding them solutions other than what many believe is the ultimate repossession of their property.