Foreclosure – Page 6 – Miami Real Estate Attorney Blog

Foreclosures Continue to Plague South Florida

Here is a small glimpse on how foreclosures are impacting South Florida:

By the Numbers

265,000 — Total foreclosures in Miami-Dade, Broward and Palm Beach counties since 2007.
23,348 — Total permanent South Florida mortgage modifications under the federal government’s Home Affordable Modification Program, HAMP.
48 — Percentage of homes worth less than the amount of the mortgage in Miami-Dade County.
10,000 — Mortgage counselors hired by Bank of America in 2010.
600 — Average number of days it takes to complete a foreclosure in Florida.
174,000 — Property tax appeals filed by South Florida homeowners in 2009.
109,496 — Pending foreclosure cases stuck somewhere in South Florida’s court system.
10,000 — Foreclosure affidavits signed each month by GMAC employee Jeffrey Stephan, the first bank employee exposed as a so-called robo-signer.
$9.6 million — Amount granted by the Florida Legislature last year to help close out 347,000 foreclosure cases from its backlog in 12 months.
200 — Foreclosure cases Miami-Dade courts would need to dispose of per day to meet the Legislature’s goal.

Impact

Everyone has been left scrambling to find solutions to the real estate collapse. Major lenders, local governments and county courts have spent the last three years trying to deal with the fallout from the housing crisis. Each institution quickly found out it was unprepared and undermanned to handle the crisis, and most have been trying to play catchup ever since.

In this difficult climate, it is imperative that you assess your rights and options. The current real estate market, and ongoing foreclosure crises, presents all sorts of issues that must be properly navigated. Our Miami foreclosure defense lawyers have assisted many parties 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.
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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.

Massachusetts’ Supreme Court Provides a Powerful Victory for Many Struggling Homeowners Facing Foreclosure

The Massachusetts’ Supreme Court ruled that the bank could not foreclose on two properties because the bank could not produce the appropriate paperwork to demonstrate who actually owned the loan.

This is a powerful ruling, and it may be a harbinger of things to come. If you are facing foreclosure, the time may be now to contact our office. Many homeowners who stand up for their rights are often able to find an alternative to foreclosure. Plus, the growing list of scandals facing the banks only highlight the need to assess your rights. Those growing scandals include the robo-signing scandal, as well as issues surrounding service of process.

What makes the Massachusetts case interesting, however, is the fact that the State’s highest court found that the bank could not prove who owned the mortgage at issue. It turns out that it appears as though the system created by the banks to help streamline, and document, their own mortgage system, MERS, is likely what failed them in this case.

That is the case because mortgage loans are like real property and can only be transferred by physically signing over the paperwork — like someone endorsing a check or the title to a car — and delivering it to the next holder. Without that, the holder of record doesn’t change.

As you can imagine, the amount of paperwork required to maintain all those files during the “go go” days of the real estate boom would have been overwhelming. Consequently, systems and procedures were created to help alleviate the banks’ requirement to keep those records. Those systems are known as MERS.

MERS also enabled Wall Street to trade mortgage backed securities with greater ease. Under mortgage securitization, loans got transferred many times after origination before landing in pools of mortgages that are sold to investors. But often times, the banks simply didn’t endorse the paperwork between steps.

And that was apparently the problem in the Massachusetts case. The loan at issue went through five different owners before winding up in a pool of mortgages that U.S. Bank was the trustee for. During that trip down the chain, however, the parties failed to legally assign the mortgage.

The bank produced documents that showed that the loan was one of the mortgages put into a pool, but that failed to satisfy the court, which cited “the utter carelessness with which the plaintiff banks documented the titles to their assets.”
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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.

Florida’s Foreclosure “Rocket Dockets” Continue to be Scrutinized

The New York Times published an article on how the State of Florida is dealing with the record amount of foreclosure actions. More importantly though, the article points a few reasons why its important to hire an experienced foreclosure defense attorney when facing a foreclosure.

Florida set aside nearly $10 million to organize foreclosure-only courts across the state. These courts are run by retired judges. While these courts have certainly helped speed up the foreclosure process and freed up dockets for other types of civil cases, foreclosure defense lawyers have expressed some concerns about how these judges run their court rooms.

Foreclosure defense attorneys, including the attorneys at our firm, argue that many of these judges are so intent on cutting down the foreclosure caseload that they may be unfairly siding with lenders at the expense of homeowners. Many of these judges simply ignore contradictory evidence and allow lenders to foreclose on properties that they have yet to prove they own.

We have commented on our own labors in many “foreclosure dockets” in the past. Often times, however, the foreclosure process simply favors the banks to the dismay of many distressed homeowners. For instance, if a homeowner is representing himself/herself, and fails to appear for court, the Judge often issues the foreclosure in the bank’s favor. However, if the bank’s lawyer shows up unprepared, then often times the Judge just lets the bank re-schedule the hearing to the homeowner’s detriment.

This video also discussed Florida’s “rocket dockets.”

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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.

Experts are Predicting Record Foreclosures in the First Quarter of 2011

Now that the holidays are over, the temporary freeze on foreclosures is over as well. Industry experts expect thousands of foreclosed properties to enter the market in the coming weeks and months. The slowdown at the end of last year was mostly due to regular holiday foreclosure freezes and the robo-signing scandal. However, those events are behind us now. Accordingly, the pace of foreclosures is about to pick up.

Many are predicting a record first quarter for 2011. They expect lenders to repossess about 100,000 homes. The expected record is attributed to the usual seasonal uptick in the first quarter coupled with the necessary acceleration required because of the delays caused by the robo-signing scandal.

The National Association of Realtors says it is not surprised by reports documenting the expected up-tick in foreclosures. Its believed that lenders are not going to dump repossessed parties all at once. They expect the process to be gradual. However, uncertainty lies on whether the already weak market will be able to handle the newly-unloaded housing inventory.

What would help the real estate market? Basically, an improved economy and job creation. These factors would increase housing demand and swallow the shadow inventory that is soon to hit the market. However, most economists believe that unemployment will remain near 9 percent throughout 2011. Plus, those who feel insecure in their employment or are unemployed are not going to buy a home. Also, considering how lenders have tightened their credit standards, its possible that even those with good credit scores may be unable to secure a loan.

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.
—–
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.

Miami Foreclosure Defense Lawyers Agree that David J. Stern’s Departure Creates Opportunities for Many Struggling Homeowners

How the mighty have fallen! Better known as the “foreclosure king”, David J. Stern was once doing well enough to buy employees cars and houses, while purchasing a few multi-million dollar homes himself. Currently, his company’s stock trades for pennies and may even face de-listing. His firm is facing multiple lawsuits and is still under investigation by the Florida attorney general’s office. His businesses have lost powerful clients. Consequently, he’s had to let go of hundreds of employees.

Stern’s fall is newsworthy because it will greatly impact pending foreclosures in Florida. The firm’s conduct which led to its demise will set the tone for the state’s real estate market. The downsizing at his firm has led to thousands of cases which are basically not being worked on whatsoever. Because Stern lawyers are no longer showing up for hearings, foreclosure defense lawyers are having trouble setting hearings or even finding someone to speak with on the other side.

This 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.

Another consequence of Stern’s fall: banks are not bidding on their properties at foreclosure sales leading to properties being temporarily sold for as little as $200. These sales have only been temporary because Stern’s failure to represent the bank’s means notice of the sales have been legally deficient.

This is certainly not the end of the foreclosure ordeal. Other foreclosure mills are also being investigated, so its possible other firms will be slammed. Saving money was certainly one of the driving forces behind the fraudulent measures used by many of the foreclosure mills. However, its also certain that doing things right the first time around will have proven to be the cheaper approach and better approach for both the banks and many struggling homeowners alike.
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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.

Florida Homeowners Stay in their Homes Longer Because Florida is Among the Nation’s Leaders for the Length of Time it takes to Commence a Foreclosure against a Delinquent Borrower

According to a recent report, Florida ranks among the top states nationally for the average length of time it takes for foreclosure proceedings to begin. For those homeowners who went into foreclosure in November, they typically had not made a mortgage payment in 10 months. Financial experts are flabbergasted by the 307 day delay between the first late payment and a foreclosure referral.

Here are some statistics for other states: In Maryland, a home doesn’t go into foreclosure until 358 days after the first late payment. In New York its 344 days, and California tops the list at 367 days.

The report also found that 18 percent of loans across the country with 24 or more delinquent payments are not in foreclosure. Further, about 15 percent of loans with 18 months of no payments are not in foreclosure. As a result, a very large pool of extremely delinquent loans exist.

Of course, delinquent homeowners benefit from these delays. However, homeowner associations certainly do not obtain any benefit because they are unable to collect fees. Also, neighbors of vacant properties must deal with the fact of reduced home values and property maintenance.

A reason for the delay is the federal government’s loan modification plan. The Making Home Affordable program helps homeowners obtain lower monthly payments. As we’ve discussed, the program has not been completely successful due to the amount of homeowners dropping out and the bureaucratic red tape.

Another reason for the lengthy delays is the fact that banks are unprepared to handle the millions of foreclosure cases as well as loan modifications. They also don’t have the staff or the talent needed to move these faster.

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.

Foreclosures Get a Reprieve During the Holiday Season

While many loan servicers, and banks, were experiencing increasingly more difficulty in moving their foreclosures forward due to shoddy paperwork, “robo signing”, and faulty legal process, many of them are nonetheless temporarily halting all foreclosure evictions during the holidays. Moreover, some South Florida courts are even canceling foreclosure related hearings and foreclosure sales until after the holidays.

Fannie Mae and Freddie Mac have halted foreclosure evictions during the Christmas and New Year’s holidays. As for Bank of America, it will also halt all foreclosure sales and evictions during the holidays on all loans in its portfolio or held by investors who will allow such a moratorium.

Broward County has canceled all scheduled foreclosure auctions through the end of the year. Moreover, all foreclosure hearings scheduled during the holidays must also be re-scheduled.

While no such order has been issued in Miami-Dade County, long standing tradition, and custom, holds that foreclosure evictions and foreclosure sales will not take place during the holidays. Indeed, the next scheduled foreclosure sale in Miami-Dade County is scheduled to take place on January 3, 2011.

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.

Florida’s Attorney General Initiates Investigation Against Process Servers

While Florida’s Attorney General continues its investigation into many so-called foreclosure mills, it has now begun investigating two companies that deliver foreclosure notices to defaulted homeowners. While many would consider it a mere technicality, proper service of process is vital to our judicial system. It ensures we are all provided fair notice of any sort of legal action against us.

Two process serving companies, one based in Miami, are being investigated after numerous complaints were filed against them. Complaints include filing questionable statements with the court, back-dating documents and questionable billings. Both of those companies have been used by the now notorious law offices of David J. Stern in Plantation. Two recent court decisions also illustrate the importance of perfecting service of process.

The job of a process server is to personally hand court summonses to defendants. This provides homeowners of the fact that a legal action has been filed against them. It also lets them know that they have 20 days to respond to the complaint or the action will proceed.

As we previously discussed, banks, and their lawyers, are often in a rush to commence legal proceedings to foreclose on your home. In light of all the “robo signing” allegations, and on going investigation launched by Florida’s Attorney General, it should come as no surprise that banks are also often cutting corners to perfect service of process.

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.

“Underwater” Homes Continue to Dampen South Florida’s Real Estate Market Leading to More “Strategic Defaults” and Foreclosures

The term “underwater” typically refers to the situation where a borrower owes more on their home than their home is worth. According to news reports, Florida is behind only Nevada and Arizona with the amount of homes with negative equity, or that are currently “underwater.”

Nearly half of all Florida homeowners had mortgages that were “underwater.” Specifically, more than 2 million mortgages out of 4.5 million are currently underwater. Additionally, an almost 200,000 more were near negative equity.

The high number of loans that are “underwater” is an increasingly disturbing trend in South Florida. The reason being is that may individuals with a loan that is “underwater” have decided to “strategically default” on their loan.

What is a ‘strategic default’? It is a decision by a borrower to stop making payments on a debt despite having the financial ability to make the payment. The large financial firm, Morgan Stanley, for example, recently made the calculated decision to give up five San Francisco towers it purchased at the peak of the booming real estate market.

Many individual borrowers are also turning to the same strategy used by Morgan Stanley, and others, and are seeking solutions to the problems brought in by the unstable real estate market. And the reason ‘strategic defaults’ are becoming so popular are for a number of different reasons.

For instance, many homeowners are unable to sell their homes without bringing tens of thousands of dollars to the closing table. Consequently, many of these owners just give up and walk away. This, in turn, triggers more foreclosures and, ultimately, price declines.

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.

Have You Been Properly Served with that Lawsuit? Contact a Miami Foreclosure Defense Lawyer Today to Determine if You Have Been Properly Served with a Foreclosure Lawsuit and to Further Assess Your Rights and Alternatives to Foreclosure

Two recent court decisions from the Third District Court of Appeal highlight the importance of proper service of process. These two decisions are also powerful rulings that could be used to aid homeowners in defending a foreclosure if they have not been properly served with the lawsuit.

Service of process is the procedure used to give legal notice to a person (such as a defendant/homeowner in a foreclosure action) of a court’s exercise of its jurisdiction over that person so as to enable that person to respond to the proceeding before the court. Typically, notice is furnished by delivering a set of court documents (called “process”) to the person to be served. Once service of process has been properly perfected, by the Plaintiff (such as a bank filing a foreclosure action against a homeowner), over the defendant (such as a homeowner), then the Court has jurisdiction to enter orders in the case. Such court orders could include the sale of the property. But the Court cannot sell the property unless service of process has been properly perfected.

In two very favorable rulings for homeowners facing foreclosure, the Third District Court of Appeal recently concluded that the bank could not sell the property at issue because the bank had failed to properly serve the defendant homeowners with the necessary legal papers to begin the foreclosure.

In the first case, Opella vs. Bayview, the Third District Court of Appeal concluded that a foreclosure judgment needed to be reversed because the lender failed to properly notify the property owner of the legal action. The Appellate Court ruled that service of process was done improperly and that the lender could not proceed with the lawsuit given that service of process was faulty. The Third District Court of Appeal also referred the matter to the Florida Bar for further investigation to determine if the Bank’s lawyers violated any rules governing the practice of law in Florida.

The second case, Bennett vs. Christiana Bank & Trust Company, also involved allegations of improper service of process. And in that case, the Third District Court of Appeal again concluded that service of process was faulty.

In Bennett, the Third District Court of Appeal concluded that leaving lawsuit documents at a homeowner’s front door is insufficient notification and in violation of Florida’s service of process laws, and voided the final judgment.

These two cases illustrate how banks, and their lawyers, are often in a rush to commence legal proceedings to foreclose on your home. In light of all the “robo signing” allegations, and on going investigation launched by Florida’s Attorney General, it should come as no surprise that banks are also often cutting corners to perfect service of process.

However, even if you believe that the legal papers, and lawsuit, were not properly provided to you, if you fail to respond within 20 days, or otherwise act in a timely manner, you will be in a default situation where your defenses may be all waived and it will be difficult for you to assert any valid defense that you may have to defend the case. And that includes the defense that you have not been properly served with process and the legal papers.

Therefore, if you have received any papers that you feel may be a lawsuit filed against you then you need to take immediate action to protect your rights. There are many alternatives to foreclosure, and often times it just takes proper planning to properly navigate against the potential pitfalls. And one of the best ways to plan is to consult with a foreclosure defense lawyer. Help is often available to those who seek it.
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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.