Hugo V. Alvarez – Page 8 – Miami Real Estate Attorney Blog

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

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

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

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

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

What about non-federal loans? Help could be on the way. Three bills were introduced in Congress that could help borrowers with non-federal loans save money through refinancing. The Responsible Homeowners Refinancing Act is designed very similar to the FHA’s streamline program, which is helping as many as 3 million home owners save up to $3,000 a year. According to the Bill’s sponsors, “[T]he legislation would pay for itself . . . by reducing default rates and foreclosures . . . .”
—–
EXTENDED BODY:
Our Real Estate attorneys will work hard to protect your home from being foreclosed on for the foreseeable future. We also have experienced attorneys that can help you with all your refinancing and short sale needs. Don’t hesitate and give us a call today.

Banks Paying Money to Borrowers to Push Short Sales Through to Sale

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

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

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

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

For now, incentive payments are far and few between; however, lenders will have to keep this option open because loan modifications are not always available to borrowers . And banks are well aware of the fact that many of these mortgage payments are long over due. In Florida alone, half of its loans in the foreclosure process are two years past due.
—–
EXTENDED BODY:
If you have fallen behind on your mortgage payments and are facing foreclosure, it is imperative that you assess your legal rights and talk to one of our real estate attorneys today. Do not walk away and allow the bank to foreclose on your home. One of our attorneys can defend a foreclosure lawsuit, which might give the home owner additional time to secure a short sale or loan modification. Contact us today.

Foreclosure Filings Are Decreasing

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

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

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

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

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

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

Home Prices Could Rise by as Much as 4%

Many new homeowners across America have benefitted exponentially from low sale prices and mortgage rates. However, that all may change soon if you’re a potential buyer.

The USA Today is reporting that average home prices in the U.S. will rise almost 4% a year for the next five years. Markets, such as Miami, FL, may see an increase in sale prices at the end of the summer before finally leveling off.

In predicting this rise, many of the leading home price indexes, which measure the U.S. residential market and track changes in the value of residential real estate, point to several different factors. Among them are investors, good affordability, low inventories, and the fact that conventional mortgage payments now account for just 12% of median family incomes versus a historic norm of 20%.

Florida, having more cities than any other state, has show the strongest signs of recovery. This is especially true for cities such as Orlando and to absolutely nobody’s surprise, Miami . According to Realtor.com, prices of homes in Miami are up 20%, in some areas, and inventories down in excess of 40%.

Indeed, home values in South Florida rose 1.1 percent year-over-year in March, to $141,300, after reaching bottom in late 2011. Only Phoenix had a higher year-over-year increase at 2.8%. Moreover, Miami ranked among just five cities in the nation to show an increase in annualized housing prices in February, up 0.6?percent from January, and up 0.8 percent year-over-year.

However, and while we are seeing a slow recovery take hold, the real estate market is still far from a full recovery. Prices continue to remain low. And many banks have not yet started to push their shadow inventory into the market. So a full recovery can still be years away.
—–
EXTENDED BODY:
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.

Deficiency Judgments in Foreclosures

In a time where people are losing their homes to foreclosure daily, what can possibly add more insult to injury? The answer – deficiency judgments.

A deficiency judgment is a money judgment entered against former homeowners who lost their property to foreclosure. The amount of the judgment is the difference between what was owed on the loan and the price the home sold for on the sale date.

In the majority of these scenarios, homeowners are left paying thousands of dollars due to the nature of the current-underwater market. This judgment follows the homeowner for up to twenty years, if not longer. Florida, a state that allows deficiency judgments, has had the most foreclosures since 2007. Making deficiency judgments an issue that hits really close to home.

In other words, if pushing you to attain an unaffordable mortgage during the go-go heyday of the real estate housing market was not enough many banks today are pushing for deficiency judgment. Many banks are today chasing depleted borrowers to pay for the deficiency to improve the bank’s bottom line, while further pushing the borrower to the brink of economic collapse.

What about unpaid homeowner’s association dues? Unfortunately, they are also subject to deficiency judgments, which allows condo associations to go after former owners for unpaid fees.

Another potential problem is that many of the banks are selling these deficiency judgments to investors who are in turn pouring the judgments into hedge funds and selling them off as securities, or selling them to collection firms who ramp up their collection efforts. And the collection agency may have this judgment for at least 20 years. Which means that the collection agency would be within their right to use all legal tactics necessary to collect.

Until the economy rebounds, we will continue to see courts around the country enter deficiency judgments against homeowners. And even if these same homeowners are fortunate enough to find themselves in new homes, some might not be able to pay off the judgment.
—–
EXTENDED BODY:
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.

Are We Seeing the Start of a Real Estate Rebound?

There was a time, not so long ago, when a buyer could offer pennies on the dollar for a dream home in South Florida. It was not rare for a potential buyer to offer up to 25% or more below the asking price. After all, the market was congested with available homes and the economy was in a deplorable state. However, times are changing and making an unreasonable offer can actually hurt, instead of help a buyers chances of securing their dream home.

Across the United States, including South Florida, more and more homes are being purchased at higher than normal rates leaving very little inventory for realty agents to work with. A potential buyer who comes in and makes a very low offer often finds him or herself being left off the radar when being compared to other, more serious buyers.

In other words, a buyer no longs holds the power, sellers do. A seller is likely to come back more aggressive if he or she receives a low-ball offer compare to an offer that is reasonable or closer to the asking price.

Home values in South Florida rose 1.1 percent year-over-year in March, to $141,300, after reaching bottom in late 2011. Only Phoenix had a higher year-over-year increase at 2.8%. Moreover, Miami ranked among just five cities in the nation to show an increase in annualized housing prices in February, up 0.6 percent from January, and up 0.8 percent year-over-year.

Consequently, a low-ball offer may still work in some communities were one can find stockpiles of inventory, but these are far and few between in places such as Chicago, Miami, Washington D.C., etc. For example, some out of town buyers still appear to be under the impression that all Florida real estate remains depressed. They insist on submitting offers that make no sense in today’s environment.

As such, a buyer who is serious about purchasing a home must ask themselves whether the risks out weigh the potential reward. Put simply, if the property has potential to be your dream home, don’t be cheap or you will risk losing the home altogether.

Distressed Properties Still Dominate the Market.

With that said, however, the real estate market is still far from a full recovery. Prices continue to remain low compared with prices just five years ago. In Miami, prices fell 50 percent from the peak, and are just up 2 percent since reaching a low in April 2011

Prices may not return to the price points seen just a few years ago for some time still. So now is a good time to buy a property. Especially when you consider that interest rates continue to remain at historically low interest rates.

Therefore, while the market is moving in a positive direction, it will be some time before it can attain a healthy state.

The reason being is that distressed properties still make up more than 50 percent of sales. That is down, however, from more than 60 percent a year ago. Distressed properties are keeping a lid on properties, and they will continue to do so for some time.
—–
EXTENDED BODY:
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.

The Latest Twist in the Foreclosure Crises Has Bank of America Suing …. Bank of America!

To add to the tragic comedy that is the housing and mortgage market in the United States, it turns out that several news outlets recently reported that that Bank of America, on several occasions, has sued itself in foreclosure proceedings.

It is not as far-fetched as one would think. The problem lies with the robo-signing crisis, which, among other things, was a result of bank employees cutting corners when processing paperwork. Now lenders, borrowers, and the judicial court system are finding themselves severely backlogged in the foreclosure process. This has allowed cases to go through the system with the same bank being on opposing sides of the foreclosure.

This happens when a bank services the first mortgage on behalf of an investor while contemporaneously owning the second mortgage. The law requires the bank to name themselves as a defendant in order to dispose of the junior interest. Adding insult to injury, the bank will have to hire a lawyer to file the foreclosure suit and another lawyer to defend the suit.

Financial institutions, such as Bank of America, and Wells Fargo, will continue to see these scenarios pop up again so long as the foreclosure crisis continues. With no end in sight, we are left imagining what it must be like to contact opposing counsel, who happens to be only a cubicle or office space away.
—–
EXTENDED BODY:
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.

Is It Time To Buy A Home In Today’s Real Estate Market?

Housing is one of the great investments right now. Today’s market presents wonderful opportunities for many. Interest rates continue to remain at historic lows. Housing prices also continue to remain at very affordable levels.

Indeed, legendary investor Warren Buffett recently stated that if he had a way to manage them he would buy several hundred thousand single-family homes and rent them out. Consequently, there are many investors that are buying homes in today’s market as an investment and subsequently renting them.

But for the many that wish to purchase a home and actually live in it, the question becomes is today’s market the perfect time to buy.

There is certainly the valid argument that those individuals could wait to see if home prices continue to fall. Indeed, many experts suggest that home prices will continue to decline through at least this calendar year, and possibly in next year as well.

However, you cannot time the housing market anymore than you can time the stock market. True, the housing market moves far more slowly, but that works to its benefits, as prices don’t rise and fall on daily news or even major events.

Another factor to consider are thehistorically low interest rates. By all accounts, interest rates should remain pretty consistent through at least the end of the year, and possibly into the early part of next year.

Therefore, the combination of low prices coupled with historically low interest rates makes it a very attractive time to be a home purchaser for both investors and as someone who is looking to buy a home for his family.
—–
EXTENDED BODY:
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.

South Florida Home Prices Increased in January

All signs point to a continued recovery in the housing market.

Recent statistics show that home prices statewide rose 5 percent in January. The median price for existing homes across Florida last month was $129,000, compared with $122,500 a year ago.

Although sales declined statewide, pending deals have increased in every month since May and the number of homes for sale statewide has fallen by 34 percent from a year earlier.

Here, in South Florida, home prices continue to trend upward, offering hope of a housing recovery even while many say a bottom may still be a year away.

Some still expect a flood of bank owned properties to hit the market. But when that does, there is a growing school of thought that such a development will be a favorable one for a housing market that is appears to be bouncing back. The reason being is there is actually a shortage of available properties in many areas throughout South Florida. And if the property is priced right, it will not be on the market very long. Many are taking advantage of the record low interest rates, and other such favorable factors, and jump from the rental market into home ownership.

Today’s market presents all sorts of unique opportunities for both buyers and sellers. It also presents wonderful opportunities for those with homes that are underwater as today’s market is a short sale driven market. It may be time to consult with a real estate attorney to assess your options.
—–
EXTENDED BODY:
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.

Mortgage Deal Fails to Make an Impact to Help Struggling Homeowners

A mortgage settlement over the mishandling of millions of foreclosures was recently reached following 16 months of complex negotiations between 50 attorneys general and five major banks amid allegations of robo-signing and other abuses further fueling the foreclosure crises.

Under the terms of the settlement, those who have lost their homes or have fallen underwater on their loans could receive a $2,000 check, a $20,000 mortgage reduction or a lower interest payment.

But while everyone involved in procuring this deal should be applauded for their effort, the deal falls short. The deal is saddled with glaring limitations which will make it difficult to reach the millions of homeowners currently struggling.

For starters, the numbers simply tell us that this deal won’t reach that many people which means this settlement will be felt by just few fortunate individuals. Specifically, borrowers around the country owe more than $700 billion more on their homes than the homes are worth, yet the settlement offers only $26 billion in fines and relief to homeowners.

Additionally, approximately one million homeowners will have their mortgage debt reduced or loans refinanced at a lower interest rate, and up to 750,000 other borrowers who became victims of abuses in the foreclosure process could receive an average of $1,500 to $2,000. On the other hand, many estimate that some 11 million U.S. homeowners are underwater — they owe more on their homes than the homes are worth. Some 4 million are in foreclosure or seriously delinquent.

So to repeat, a mere cursory look at the numbers reveals that the deal won’t be as far reaching or helpful to the great majority of struggling homeowners.

But the deal has other limitations as well. The settlement is limited to five big banks that own the mortgages directly. Those include Bank of America, JP Morgan Chase, Wells Fargo, Citigroup and Ally.

It excludes private investors, other banks and — most important — mortgages backed by federal agencies known as Fannie Mae and Freddie Mac, as well as the FHA. These agencies, which are subject to controls from the executive and Congress, account for about 56 percent of all existing loans.

This settlement fails to satisfy the need for accountability by those responsible for the housing collapse. If the only punishment is a slap on the wrist, the mortgage industry will have learned nothing from this epic debacle.
—–
EXTENDED BODY:
Consider Your Options. Contact Us Today.

We are certainly in difficult times. At Alvarez & Barbara, LLP, we understand all of our client’s individual needs and pride ourselves in providing high quality service.

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