Hugo V. Alvarez – Page 23 – Miami Real Estate Attorney Blog

Mortgage Crises Continues For Those With Adjustable Rate Mortgages in Miami and Beyond

The worst of the real estate meltdown is far from over. While the economy is showing tenuous signs of recovery, unemployment rates remain at staggering highs. With this backdrop, millions of homes will likely go to foreclosure this year, and more so this year, than in years past, as many risky adjustable rate mortgages written in 2005 are about to be reset, and yet others explore “strategic defaults.” If you are currently facing foreclosure, or need additional information regarding your home mortgage, please contact our office today.

As we previously reported, there are multiple factors that typically drive foreclosures. Those factors include the overall economy, unemployment, and a host of other reasons. However, two new factors will likely fuel additional foreclosure filings for the rest of the year, and beyond.

First, many adjustable-rate mortgages will be reset during the course of the next few months. Many prospective home purchasers agreed to exotic mortgages in an effort to purchase homes that they likely would not have been to afford otherwise. In an effort to purchase that dream home, many home purchasers agreed to financing deals that provided for low monthly payments for a few years. But after that, the mortgage would readjust with a higher interest rate. And now, we are starting to see the next wave of adjustable mortgages reset which is about to further complicate the ongoing foreclosure crises we are experiencing here in South Florida.

Second, not only will unemployment and adjustable mortgage resets drive-up foreclosure filings here in South Florida, but many more people may opt to push forward with a foreclosure by way of a “strategic default.” As we previously explained, a strategic default is when a homeowner voluntarily decides to stop paying their mortgage because their home is worth less than their mortgage. In other words, the home is “under water” and the borrower believes that a strategic default may yield a better deal for them by requiring the bank to address the borrower’s concerns by way of a foreclosure.

The next chapter in the foreclosure crisis here in Miami, and beyond, will not only impact lower income borrowers who typically purchased mortgages they could not afford, often at the advice of pushy, and sometimes fraudulent, banks and brokers. But what we will soon start seeing, and what our firm has already begun to handle with much success in Miami, and beyond, is foreclosures starting to mount for borrowers who have prime mortgages that are solidly middle-class, upper middle-class and even the rich and famous.
—–
EXTENDED BODY:
The foreclosure crisis is an ongoing problem that impacts all segments of our society, and individuals of all walks of life. If you, or a loved one, are facing foreclosure, or are in need of a consultation with a real estate attorney regarding your rights, please contact our office today.

Foreclosures Fuel Decrease of Property Values for the 3rd Straight Year in Miami-Dade County

Miami-Dade County’s official estimate of taxable values released to local taxing authorities show a general decline in both residential and commercial real property values in Miami-Dade County for the third straight year.

The decline for the third straight year stems from multiple factors fueling the collapse of real estate values throughout South Florida. Additionally, South Florida continues to struggle with an economic downturn that has cost many their jobs and sent real estate prices spiraling downward.

According to Miami-Dade County’s Property Appraiser, the 2010 estimate of Miami-Dade County’s taxable value is $192,484,000,000. That figure represents a sharp 13.4% decline as compared with the 2009 figure of $222,141,817,140. Moreover, the new construction taxable value in Miami-Dade County is estimated at $2,626,000,000. And that figure is also a significant decline from the $8,379,000,000 of the previous year.

These drops in real estate value are the steepest since the once roaring real estate market collapsed a few years ago. This figures will also form the basis of Miami-Dade County’s budget, and the budgets of all local municipal budgets in Miami-Dade County. Therefore, there can be no doubt that this will be yet another difficult year for government budgets throughout South Florida, and we will likely see more critical cuts to services as well as major fee increases.

Although there is evidence to suggest that the real estate market has “bottomed out”, it still won’t help the many local governments in need of tax revenue to run their cities. Worse yet, the sharp declines in real estate values here in Miami-Dade County will only continue to worsen until the foreclosure crises has fully run its course.

Hialeah Mayor Julio Robaina said the county’s projection — a 19 percent decline in his city’s taxable property value — was more than he expected, but not a shock. “It should be no surprise to any of us,” he said.
—–
EXTENDED BODY:
If you, or someone you know, is facing foreclosure, please contact our office today to assess your rights.

Judge Blasts Bank’s Lawyer and Wipes Out Mortgage in Disputed Foreclosure

Foreclosure mills are coming under increasing assault and scrutiny by crafty defense attorneys, and a judiciary that is being pushed beyond their means by the increasingly steady rise of foreclosure filings in Miami, and Florida as a whole.

Recently, Miami-Dade County Circuit Court Judge Jennifer Bailey canceled the homeowner’s debt and mortgage owed to a bank as a direct result of the bank’s willful failure to follow Judge’s Bailey Order. Judge Bailey called the actions of the bank’s lawyer were “contemptuous”. You can read the full court hearing transcript here Judge-Wipes-Out-Homeowner’s-207-000-Mortgage[1].pdf.

The issue in this case began in December of 2009 when Judge Bailey granted the bank’s motion for foreclosure sale of the homeowner’s property. However, the bank had lost the note on the homeowner’s property. As a result, Judge Bailey ordered the bank to post a $414,000 bond to indemnity the homeowner in the event another bank filed a claim against the property in question.

The bank failed to do so, and moved forward with the foreclosure sale. The homeowner’s lawyer then asked Judge Bailey to set the sale aside in light of the fact that the bank had failed to post the bond, and otherwise failed to follow the Judge’s clear court order.

Not only did Judge Bailey agree to the homeowner’s request, but Judge Bailey wiped out the entire debt. In so doing, Judge Bailey complained about the general “chaos and disorganization of lenders and their lawyers.”

This is without a doubt a significant victory for homeowners struggling to keep up with their monthly mortgage payments. It is also the latest in a string of recent rulings from Florida Judges who are beyond frustrated with the bank’s lack of candor with the judicial system. Indeed, Florida’s Attorney General is currently investigating a prominent foreclosure Tampa foreclosure firm due to purported fabrications and allegedly presenting false and misleading documents in many foreclosure cases throughout the State of Florida. These actions by many foreclosure firms have also resulted in the change of certain Rules of Civil Procedure that govern foreclosure cases.

—–
EXTENDED BODY:
Please contact our office today if you are facing foreclosure. Our team of dedicated attorneys can help you. But don’t delay and call us today.

South Florida Real Estates Sales Are Up As Foreclosures Steady

According to the National Association of Realtors, sales of existing homes and condos in Miami-Dade, Broward and Palm Beach county rose 27% in April.

Additionally, and another positive trend, last month’s statewide existing home median price of $140,100 was 1% higher than the statewide median price in April of 2009. While the median price for single family homes also rose, the same can’t be said for condos. Statewide, condo prices fell 1%, to $79,300 from $79,000.

In the tri-county area, Miami saw the smallest increase in home sales in April. There were 594 sales, up 7% from 555 in April of 2009. The median price was up 8%, to $192,000 from $177,000.

There several factors behind these positive numbers. We previously anticipated this news, and discussed many of the many positive factors that are behind the recent news regarding the trends in the Miami, and South Florida, real estate market.

As for some of the reasons behind this trend, they include the following:

• The recent expiration of certain tax credits forced many to buy before the tax credit expired.
• We’re starting to see a stabilization of home prices.
• Home prices are starting to stabilize because inventory levels are starting to fall.
• Inventory levels are starting to fall because foreclosures are being absorbed in the market at manageable levels.

—–
EXTENDED BODY:
If you wish to discuss this article, or your real estate needs in general, please contact our office today to discuss further. Our phone number is 305-263-7700.

Foreclosures Hit the Rich and Famous in Miami

Fisher Island is home to many of the rich and famous in Miami. Its residents have seen the likes of Oprah Winfrey, Mel Brooks, actress Sharon Gless, Florida first lady Carole Crist, and Boris Becker. Back in 2008, Fisher Island held the number one spot in Forbes magazine’s annual ranking of America’s most expensive postal zone.

The latest Forbes list, however, revealed that Fisher Island has dropped to No. 33, illustrating that no one is immune from the current economic and foreclosure crisis plaguing South Florida, and the nation as a whole.

Since 2009, at least 17 units have entered foreclosure and more than a dozen short sales – prospective deals in which the owner is willing to accept less than the amount owed – are listed. Smaller units have even been listed at the unbelievable price of $190,000. A recent report from Zillow.com shows that 97 percent of units on the island dropped in value since March of 2009.

Retired builder Arnold Schiller, finds that Fisher Island is not the only luxury community that is suffering during the current economic climate. Other pricy locations such as the Hamptons are feeling the effects of approximately 30 percent decreases in their home values.

However, residents and real estate agents are optimistic that Fisher Island will see signs of improvement in the near future. At the end of the day, Fisher Island is still a captivating place in an incredible location. Its privileged location, pristine beaches, views and unheard of prices will continue to draw attention.

—–
EXTENDED BODY:
If you are facing a foreclosure, contact our office today to discuss your options. We can be reached at 305-263-7700.

Miami Real Estate Rebound is Short Lived

Despite a recent surge in the real estate industry, experts predict that sales will plummet this summer. This is mainly due to the expiration of the tax credit, the ongoing unemployment crisis, and the strict lending standards. “Potential home buyers are a little rattled by the state of the economy and what has happened in housing over the past two to three years,” said Wells Fargo economist Tim Quinlan. Plus, mortgage delinquencies continue to worsen in Miami.

This downturn follows a series of months where construction rates actually climbed. Single-family home-building increased by 10 percent last month. Although the home building rate remains 70% below the decade’s peak in January 2006, this figure still represents more than 40% above the April 2009 bottom. Home construction in April was at its highest in 18 months. The Commerce Department stated that the rate of construction last month for single-family homes and apartment buildings rose 5.8% to a seasonally adjusted annual rate of 672,000. The builders’ boost is attributed to the two tax credits that were available to buyers early this year: an $8,000 credit for new buyers and a $6,500 for current owners who buy and move into another home. According to the IRS, about 2.2 million households used those credits at a cost of $16 billion through late March. There is no sign that Congress will extend the tax credits in the near future.

Notwithstanding, it is evident that the pace of construction has slowed down as the latest readings on applications for new building permits reveal that applications sank 11.5% in April to an annual rate of 606,000. That’s the lowest since October. Some hope that the tame interest rates at the record lows help bolster the economy once again.
—–
EXTENDED BODY:
If you wish to discuss this article, or your real estate needs in general, please contact our office today to discuss further. Our phone number is 305-263-7700.

Jockey Club in Miami Lost to Foreclosure

Like many during the peak of the real estate market run up, Cinerest LLC, Tifeeret LLC and Tzion LLC along with managing member Yaron Horesh had plans of grandeur for the historic Jockey Club located at 11111 Biscayne Blvd., Miami, Fl. In 2005, Horesh’s companies paid a whooping $18.6 million dollars for the land around the condo high rise. They planned to build a residential project on the land. Today, they have nothing to show for it.

What has become rather common in South Florida, Horesh, and his companies, failed to build on the property they purchased back in 2005. Despite plans to build a residential project, construction never commenced. Consequently, Seacoast National Bank, an administrative agent for a group of lenders, filed a foreclosure against Horesh, and his companies, back in 2008.

Horesh lost the foreclosure case, and now the property is scheduled to be sold during an online auction on August 2nd. This is yet another sad chapter of the real estate meltdown that many are experiencing daily in South Florida.

Indeed, so far this year we have witnessed the Icon Brickell turned over in a ‘friendly foreclosure‘, prominent real estate developers suing their banks over projects, and others, like Horesh, that are just losing their properties in foreclosures.
—–
EXTENDED BODY:
This is a tricky real estate market. You need an attorney that knows this real estate market. If you are facing a foreclosure, or want to assess your options, call our office today.

Mortgage Delinquencies Continue to Worsen in Miami

In Miami, the mortgage crises continues its ugly march into the record books. According to the Mortgage Bankers Association, more than 10% of homeowners with a mortgage had missed at least one payment between January and March of this year. That is a record high and up from 9.1 percent from a year ago.

While many are predicting an improvement soon, the continued high number of homeowners in default or at risk of losing their home to a foreclosure will have a lingering effect on the economy as a whole.

Worse yet is the fact that a Wall Street Journal report reveals that one in four in the government’s loan modification program are dropped. According to the U.S. Department of the Treasury’s April update, the Making Home Affordable Program (HAMP) has 78,356 home loans under active modification, of which 30,923 are in Miami-Dade, Broward and Palm Beach counties.

On the other hand, we are starting to see some slow progress. For instance, while loan modifications got off to a slow start, housing officials have recently created incentives for lenders and servicers which have resulted in more modifications. Additionally, the number of homeowners starting to show signs of trouble is trending downward. As of March, nearly 3.5% of borrowers had missed at least one month of mortgage payments, down from 3.8% from a year earlier.

But the slow progress we are seeing is not enough to correct a bad situation. Therefore, should loan modifications fail to help, many homes will go up for sale either as a short sale or in a foreclosure sale. Therefore, many are forecasting that home prices will soon see yet another dip as more of these homes go up for sale at deeply discounted prices. While the mortgage crises was initially triggered by lax lending practices, today’s mortgage crises has many reasons other than just a home underwater.
—–
EXTENDED BODY:
If you are facing a foreclosure, contact our office today to discuss your options. We can be reached at 305-263-7700.

Increase in Miami Homes Being Repossessed Due to Foreclosures

According to a recent news report, home repossessions increased to record levels and more than one fifth of all U.S. mortgage holders were underwater on their mortgages in that they owed more on their mortgage than their home was worth.

More than 1 in 1000 homes were repossessed by lenders in March. Twenty three percent of owners of homes with mortgages owed more than their home was worth, and that was up from 21 percent in the prior three month period.

Moreover, U.S. home values continue to drop. The values dropped 3.8 percent in the first quarter, and that is the 13th straight period of year over year declines. These trends make it increasingly difficult for home owners with homes underwater to move the homes. Thus, when they fall behind, their options are limited. This makes it more likely that those homeowners will lose their homes in a foreclosure.

The continued high number of homes, and homeowners, underwater will continue to place a downward pressure on home prices. Thus, it is likely that we will see home prices continue to fall a bit more during the course of the next 12 months.

Additionally, banks are repossessing homes at a greater rare. In the first quarter, bank repossessions rose by 35% in comparison to the same period of the prior year. Indeed, repossessed homes now account for 1/5 of all homes currently for sale.
—–
EXTENDED BODY:
Please contact our office today to discuss your real estate options during these turbulent times.

Miami’s Icon Brickell Turned Over in a ‘Friendly Foreclosure’

Perhaps no real estate development symbolizes the boom days of the real estate bubble, and the pop heard years later, better than Miami’s very own Icon Brickell.

Icon Brickell was developed by the Related Group, led by Jorge Perez, the undisputed condo king of South Florida. In creating the Icon Brickell, Mr. Perez, and the Related Group, spared no expense. The massive project sits where the Miami River intersects with Biscayne Bay. It is comprised of 1,646 condos, a 28,000 square foot fitness area, an infinity pool the size of a football field, pool deck, sculptured columns, and many other luxuries symbolic of the opulence associated with the height of the real estate boom.

But instead of a defining triumph for Mr. Perez, and the Related Group, the Icon Brickell has come to symbolize the excess of the building boom, and real estate collapse. At the height of the building boom, many condos at the Icon Brickell were listed at over a million dollars. However, and as 2010 began, only 30 of the 500 Icon Brickell units that were ready for closing in December actually closed. Indeed, and what has become rather common in South Florida, many buyers have hired our firm in an effort to avoid closing on their units and secure the return of their deposits. Indeed, our firm has attained some successful results for buyers seeking the return of their deposits from Icon Brickell.

With angry buyers demanding the return of their deposits, rapidly decreasing property values, eroding equity, it should come as no surprise that the senior lenders at Icon Brickell began to call the shots. Moreover, and given the eroding market conditions, the writing was on the wall, and it was only a matter of time before the Icon Brickell was besieged with a foreclosure.

This week, the Related Group deeded over two 57 story towers back to its lender, a syndicate of lenders led by HSBC, in what is being described as a ‘friendly foreclosure.’ While the Related Group was aggressively offering steep discounts in an effort to entice prospective purchasers to buy, and existing buyer to close, it was not enough to hold back the mounting financial pressure and avoid giving part of the project back to its lenders in a ‘friendly foreclosure.’

This latest chapter of the foreclosure saga playing out daily in South Florida is just another illustration of how foreclosures are impacting our real estate market. It also illustrates that foreclosures are being felt by both the wealthiest of individuals, and the poorest, alike.

Our attorneys have been in the forefront of fighting this fight. If you are faced with the prospect of falling into a foreclosure, or if you would like to assess your options regarding the potential return of your deposit in a condo project like the Icon Brickell, contact our office today.