Foreclosure – Page 4 – Miami Real Estate Attorney Blog

Mortgage Rates Fall to Record Lows

The Federal Reserve recently announced details of its plan to revive the housing market. The plan is called “Operation Twist.”

As a result of said announcement by the Fed, the average rates on conventional 30 year fixed mortgages fell to 4.01%. Rates on 15 year mortgages fell to 3.28%.

Operation Twist may lower these mortgage rates even further since the Fed’s stated objective of Operation Twist is to push long term rates down further. Especially since mortgage rates tend to track the yield on 10 year Treasury notes.

But low rates have done little to boost homes rates or refinancing to date. Indeed, recent reports are rather gloomy regarding sales to date. Moreover, banks are apparently ramping up their foreclosure efforts and pushing more homeowners into foreclosure.

All of this suggests a very difficult real estate market. Accordingly, struggling homeowners should contact our office to meet with one of our Miami foreclosure defense attorneys today. Those who are in danger of losing their home to a foreclosure should examine the situation, with the aid of one of our attorneys, in greater detail.

Homeowners have many alternatives available to them to fight a foreclosure or even shrinking home equity. But homeowners must be armed with as much information as possible to decide what is best for them regarding the ongoing foreclosure crises.

Foreclosure Slowdown Continues in Miami and South Florida

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.
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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.

The Manner in which Foreclosures are Handled in Miami Dade County is About to Change

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.
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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.

New Study Reveals that Those Who Have Strategically Defaulted on their Mortgages See Their Credit Scores Recover Faster Than Others

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.

More People are Renting Homes With Foreclosures in Miami Still Ever Present

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.

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.

South Florida’s Real Estate Values Continue to Drop to Record Lows

Home prices in South Florida have reached their lowest level since the housing bubble burst in 2006. The cause for the continued price decline can be attributed to the continuing high number of foreclosures, the glut of unsold homes and the reluctance or inability of many to buy.

Real estate prices in Miami dropped by 6.1 percent year over year in the first quarter. This decline has continued over the past few months. The Miami housing market has virtually mirrored the national price index. Nationally, pricing has dropped by 5.1 percent, year over year in the first quarter, and has dropped for the 8th straight month. Therefore, it should come as no surprise that Miami is one of 12 cities nationally that recorded a new low in single-family home prices in the first quarter of 2011.

Unfortunately, these figures confirm a double dip in home prices across much of the country. This is certainly true because from the fourth quarter to the first quarter we saw a 3 percent increase in prices. But from the third to the fourth quarter we saw a 1.5 percent drop. As such, we are seeing home prices continuing on their downward spiral with no relief in sight.

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Home and Condo Sales have Increased While Florida Still Leads the Nation in Foreclosure Inventory

Florida had the nation’s highest inventory of homes currently in foreclosure. As a result, sale prices are lower than normal. Given that sales prices are lower than normal, South Florida single-family homes and condos continued to move at an increasing rate compared to last year.

According to housing data released by Florida Realtors, home sales in South Florida increased 2 percent state wide in the month of April. Condos sales have been even stronger. In South Florida alone, condo sales rose 17 percent compared to April of last year.

Specifically, single-family homes in Miami, West Palm Beach, and Ft. Lauderdale increased by 40 percent, 21 percent, and 2 percent respectively from April 2010. Surprisingly, condo sales boomed in Miami, going up a “whopping” 94 percent from a year ago. In West Palm Beach, condo sales increased 30 percent from last year, while Ft. Lauderdale saw a minimal increase, but an increase nonetheless, at 8 percent.

On the other hand, about 14.4 percent of Florida homes with a mortgage were in some stage of foreclosure in the first quarter, compared with the national rate of 4.5 percent. Additionally, at least 4.6 percent of Florida mortgages were at least 90 days past due. The percentage of Florida loans that entered the foreclosure process in the first quarter was 1.8 percent, second only to Nevada’s 2.3 percent.

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.

Record Number of Homeowners are Making Late Mortgage Payments – or No Payments at All

Yet another sign that the economy is recovering at a moderate pace, late payments on mortgages have fallen again for the fifth straight quarter. But the number of homeowners making late payments – or no payments – continues to remain extremely high when compared with the pre-real estate crisis norm.

According to news reports, the percentage of borrowers who were on average 60 days or more past due on their mortgage payments, fell to 6.19% for the three months ending on March 31. This is down from last year’s figure of 6.77%. And despite having the highest delinquency rates out of any state, Florida also saw a fall from a year ago going from 14.65% to 14.37 %. Some states, however, weren’t so lucky. Maine, for instance, saw its delinquency rate climb from 4.64% to 5.04 %.

Optimism remains low for any significant decrease in delinquency rates due to the lengthy foreclosure process, here in Florida. Foreclosing on a home is taking on average more than two years from the initial stage.

Another big reason why we wont see a decrease is because property owners will continue to be discouraged from making payments on properties that continue to decline in value. Therefore, unless we see an increase in housing prices for properties mortgaged in pre-housing bust, then we likely won’t see delinquency rates getting back to normal for possibly as long as another 4 to 8 years.

Indeed, about 9% of all borrowers are behind on their mortgages, and 4.6% of homes are in foreclosure.

Miami Foreclosure Defense Lawyers Continue to See a Steady Increase in the Number of “Underwater” Homes

According to Bloomberg news, more than 28% of all U.S. homeowners with mortgages owed more than their properties were worth in the first quarter as real estate values continued to fall.

Part of the reason for the rise in “underwater” homes is the continued steady decrease in real estate values. Home prices fell 3% in the first quarter. Moreover, many are predicting that home prices will drop as much as 9% this year as foreclosures spread and unemployment continues to remain high.

Additionally, homeowners with negative equity increased from 22% a year earlier as home prices decreased 8.2% over the past 12 months. About 27% of homes with mortgages were “underwater.”

The “Foreclosure King” Leaves a Mess Behind after he Abruptly Closed his Law Practice with over 100,00 Foreclosures Pending

Even though the foreclosure king, David J. Stern, has shut down his offices, Florida is still feeling the effects of his alleged wrongdoings. Because Stern shut down his office, yet didn’t formally withdraw as the attorney on all of his files, about 100,000 cases are basically stuck in the system.

Now, Stern is being compared to owners who walked away from their properties because they were no longer profitable and without worrying how it affects those around them. Judges are quite upset because of his informal withdrawal from cases.

In Florida, an attorney who represents a party in a lawsuit must request leave from the court in order to formally withdraw. Without a court order approving the withdrawal, an attorney stays on the record as counsel for that party. In other words, while facing allegations of fraud, Stern is basically disrespecting the judicial system once again.

Stern’s actions are only going to further delay the housing recovery. Because the banks are moving to dismiss many of Stern’s former cases, it could take months, possibly years, before a bank decides to re-file suit. All the while, empty homes will remain vacant, condo associations will have to continue taking losses due to delinquent units, and many will continue to live rent-free for much longer.

At Alvarez & Barbara, LLP, we’ve had to deal with cases where Stern has informally “withdrawn”. It’s not easy. It makes representing your client extremely difficult because it’s impossible to speak to an attorney who is prosecuting the foreclosure. However, we’ve developed strategies to get things moving if that is in our client’s best interests.

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.