Hugo V. Alvarez – Page 7 – Miami Real Estate Attorney Blog

Is Miami’s Real Estate Market Moving from a Buyer’s Market to a Seller’s Market?

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.

Court Victory for Homeowners fighting Fraudulent Foreclosure

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.

Robo-Signing Fallout Gives Florida Highest Foreclosure Activity in the Nation for 2012

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.
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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.

Is It Time To Re-Finance Your Home – Even if You Are Still Underwater on Your Mortgage?

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.
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You should contact us today to find out more about this program and assess your options regarding potentially re-financing your home.

South Florida’s Real Estate Market Still Ranks High in Delinquencies and Foreclosures, But The Market is Showing Signs of Improvement

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.
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Consider Your Options. Contact Us Today.

If you 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.

Strong Sales and Higher Prices Point to a Revitalization of the Downtown Miami Real Estate Market

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.

Foreclosure Activity Increases in Miami

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.

Foreclosure and Real Estate Attorneys are Often Asked – What is a Lis Pendens and How Does it Impact My Property?

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.

Florida Supreme Court Hears Arguments on a Potentially Pivotal Foreclosure Fraud Case

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.

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

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.
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But with the good also comes the bad. It turns out that banks are actually tightening their lending standards because they are reluctant to expose themselves to potential defaults for minor profits. Furthermore, the issue of low profits affects the banks ability to unload the mortgage interest to potential investors.

Banks seem to have learned their lesson from the subprime loan debacle. By becoming cautious lenders, they avoid the potential risks inherent with foreclosure litigation, specifically time and money.

Breaking it down even further, the low rates coupled with new lender standards have the potential of hurting the economy even further. Why? Well put simply, those who can help turn around our economy are the ones being turned away by lenders. The average American buyer is the segment of America that might actually heal the industry.

On the flip side, but also adding to the market woes, the relatively high affordability of housing has prevented individuals from placing their homes on the market. This has a direct impact on inventory, which makes it less likely for a buyer to find his or her new home.