Help For Homeowners – Page 4 – Miami Real Estate Attorney Blog

Short Sales are Dominating South Florida’s Real Estate Market While Lenders Roll Out Incentives that could pay Homeowners up to $20,000

Short sales are dominating South Florida’s market. From April to June of this year there were 5,940 short sales in Palm Beach, Broward and Miami-Dade County. That is an increase of 15% from the first quarter.

It should also come as no surprise that these short sales are coming at a significant discount. The discount is often times at least 30% lower than non-foreclosed properties.

However, the short sale process can often times be a maddening one that takes a lot of time. Indeed, it takes on average 501 days to complete a short sale in South Florida.

It is in large part due to that delay that South Florida was not listed on Realty Trac’s top 10 markets for buying short sales.

But banks are realizing the benefit of short sales. Consequently, many banks are launching programs to pay homeowners thousands of dollars to help with moving costs if they agree to sell for less than they owe on the property.

Bank of American just launched a pilot program in Florida that could pay homeowners up to $20,000 for short selling their homes instead of letting them fall into foreclosure. Chase and Wells Fargo have also announced a similar plan.

While banks often times hand homeowners a few thousand dollars if they leave the properties in good shape after foreclosure. That plan is called “cash for keys”. Additionally, homeowners are also entitled to $3,000 of government money if they complete short sales through the Home Affordable Foreclosure Alternative (HAFA) program.

Banks are also now offering incentives above and beyond those. As such, the banks are offering money in an effort to push through short sales and avoid the lengthy and often times costly foreclosure process.
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Consider Your Options. Contact Us Today.

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.

Re-Financing Your Home Just Got Easier With the Unveiling of a New Program Intended to Help Millions of Struggling Homeowners

Relief may be coming in the form of a new government program intended to aid millions of struggling homeowners.

The new program is intended to revive the government’s Home Affordable Refinance Program (HARP) program. The HARP program was intended to help spur re-financing for many homeowners so they could take advantage of the historically low interest rates and potentially save hundreds of dollars a month.

The HARP program, however, has not worked as it was initially intended. Many stumbling blocks have prevented the program in reaching many homeowners in some of the hardest hit regions of the country. One of the biggest involved the requirement surrounding home equity.

But the new changes to HARP should hopefully change that and make it easier for millions to re-finance their mortgages.

For instance, 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.

Additionally, and of significance, 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.

Navigating these waters can be difficult, but we are experienced in handling real estate matters. Many alternatives exist to struggling homeowners. At Alvarez & Barbara, LLP, we are prepared to help you with your real estate needs. Contact us today.
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Consider Your Options. Contact Us Today.

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.

Losing Your Home Is Enough To Make You Sick

Research has revealed what many have known for some time. Losing your home is enough to make you sick.

The research reveals that economic well-being and physical well-being are indeed connected. Therefore, it should come as no surprise that the ongoing national foreclosure crisis is having a significant impact on mental health as well as on a wide range of preventable conditions that are susceptible to stress.

The research focused on four states that were hardest hit by the ongoing foreclosure crisis. One of those four states was Florida, which ranks second nationally in the number of foreclosures.

Each state was analyzed by zip code comparing foreclosure rates to reports of emergency room visits and hospital admissions for stress-related conditions from April 2005 through December 2009.

For every 100 foreclosed properties in a community, emergency room and hospital admissions went up 7.2% for hypertension and 8.1% for diabetes among those age 20 to 49.

Suicide attempts also went up significantly, as did vitals and admissions related to anxiety.

Don’t let the economy ruin your health. If you feel as though you are the brink of financial disaster, then it is imperative that you find a healthy outlet for that stress before the health problems become serious.

Additionally, if you are struggling in today’s market, you certainly have alternatives available to you that could assist you are you shaving your home or avoiding foreclosure. Help is often available to those who seek it.
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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.

Re-Finance? Purchase? Time is Now to Lock in Those Historically Low Mortgage Rates

If you’re thinking about buying a home or planning to refinance, act now so you can lock in a mortgage rate. Mortgage rates have been at historic lows for months. But if lawmakers can’t reach an agreement on raising the debt ceiling, rates could rise higher.

According to experts, a government default would cause US Treasury bond prices to drop. An analyst from Bankrate.com states that the federal government’s borrowing rate is the baseline from which all other borrowing rates are determined. In essence, if the government’s borrowing costs go up then everybody else’s borrowing costs will go up as well.

Even with a short-lived default, rating agencies have indicated that they will downgrade the federal government’s rating. As a result, consumer and business rates would go up because the government would be forced to pay higher rates to bond investors.

On our blog, we’ve talking about how it’s a good time to purchase real estate due to low prices. Well, now it seems that purchasers have another incentive to purchase real estate at this time.

So far, the debt ceiling debate hasn’t affected mortgage rates. However, if the government does default, it’s going to be real hard to lock in a rate.

Basically, if you don’t take action now, you could regret it 6 months from now.

With the ongoing foreclosure crisis, high unemployment rates, and now the debt ceiling issue, we are certainly living in troubled times. While there’s occasional good news related to the South Florida real estate market, it takes particular know-how and experience to safely navigate these troubled waters.

At Alvarez & Barbara, LLP, we represent buyers, sellers, lenders, borrowers, and developers with real estate matters. This experience allows us to understand legal issues from various angles to effectively advocate our clients’ interests. No matter what you or your business’s real estate needs are – think of Alvarez & Barbara, LLP, and contact us for a free consultation.
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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.

About the Author – Gabriel de las Salas is an attorney with the law firm of Alvarez & Barbara, LLP. His practice is focused on general civil and commercial litigation, including personal injury, insurance claims and real estate disputes. Mr. de las Salas received his B.A., cum laude, from the University of Florida, and his J.D., from Stetson University College of Law.

Tips for Selling your Home in a Buyer’s Market

If you’re currently trying to sell your home, you know this is a tough market. You probably have some neighbors who are facing foreclosure and some other neighbors selling their home at an absurd discount. Apart from our neighbors, we’ve all seen the “For Sale” signs all around South Florida.

Indeed, there is no question that today’s market is a buyer’s market.

Not only is it a buyer’s market, this may be the toughest sellers’ market in years. Some experts say this is the toughest sellers market since the late ’70s and early ’80s.

On the flip side, selling your home in this market means that you get to look for your own bargain.

So, what should you do in this tough sellers’ market? Here are some tips to help sell your home:

1. Price your home aggressively. Holding out for a high price doesn’t work well in this market. In the last two years, the typical home is on the market for 8 to 10 weeks. This statistic doesn’t take into account homes that never sold or were pulled off the market. With this statistic in mind, its recommended that you ask for at least 1% less than competing homes.

2. Stage your home like a pro. It is difficult to compete with the price of homes in foreclosure or with short sales. While you might not be able to outshine your home price-wise, you definitely can outshine others when it comes to the appearance of your home. This process may be pain-staking, but the renovating, painting, and planting of flowers will pay off when your home is the nicest one on the block.

3. Use the internet to your advantage. Today, 90% percent of buyers start their search on online. Use high-resolution photos and place as much info as possible online. Show photos of the main areas of your home – kitchen, bathrooms, backyard. If you don’t, buyers will assume something is wrong.

4. Be flexible with buyers. The toughest part of this market is tighter financing. A requirement of 20% down is becoming the norm these days when all that was needed was 5% in some cases just a few years ago. Because of these factors, be conscious of how hard it is to qualify for a loan.

Buyers have many wonderful investment opportunities available to them. Indeed, buyers continue to find bargains by purchasing foreclosed homes in record numbers. As a seller, it is all the more reason to make sure your that your property is in the best possible condition.

Given the historically low interest rates, coupled with the low prices for many properties, especially foreclosed properties, the timing may never be better to purchase a new a property. Our firm can certainly assist you in your real estate needs should you be interested in purchasing, or selling, your property.

Often, an attorney is needed to navigate these troubled waters. We currently represent lenders, borrowers, buyers, sellers, and developers.

This broad array of experience allows us to effectively take a multi-faceted approach to our clients’ legal issues. No matter what you or your business’s needs may be when it comes to real estate, don’t hesitate to contact Alvarez & Barbara, LLP today.
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Consider Your Options. Contact Us Today.

We are certainly in difficult times. Not only can a foreclosure be daunting, it can break an individual’s spirit. However, there are solutions, and alternatives, to foreclosures. At Alvarez & Barbara, LLP, we understand all of our client’s individual needs and pride ourselves in providing high quality service. If you’re facing a foreclosure, don’t let it bring you down. Call us today so we can show you that the saying “every problem has a solution” is an undeniable truth.

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

Bank of America Pays Legal Fees to Homeowner in Failed Foreclosure

In what seems like a reversal of roles, a homeowner showed up at a Bank of America with a truck ready to haul away furniture for public action in order to enforce a court order.

Back in 2009, the homeowner and his wife purchased a home in the Fort Myers area without taking out a mortgage – they purchased it cash. However, about 5 months ago, Bank of America started foreclosure proceedings against them for non-payment of their mortgage. Well, of course they weren’t paying! They had no mortgage at all!

The bank did eventually drop the case. Nonetheless, it cost the homeowner about $2,500 in legal fees to defend the case. Luckily, a judge ordered the bank to reimburse him for his legal expenses. But for some unknown reason the bank never paid up. That is why the homeowner had to show and attempt to repossess property. After being there for one hour with deputies and moving trucks, the bank handed the homeowner a check.

Whenever a lender dismisses a case, or even if a judge does so, you may be entitled to recovery attorney’s fees from the bank that tried to foreclose on your home. More often than not, the mortgage and note will contain language that says the prevailing party is entitled to recover fees. If a judge dismisses a foreclosure case, the homeowner is the obvious prevailing party. Therefore, recovery of attorney’s fees may be possible if a judge orders it.

Indeed, our firm has recovered thousands of dollars in legal fees from the banks in foreclosures actions where we have prevailed.

At Alvarez & Barbara, LLP, we have extensive experience defending foreclosure cases. Not only have we worked to get cases dismissed, we’ve been able to recover attorney’s fees for our clients as well. If you’re in default or are already facing a foreclosure lawsuit, don’t hesitate to contact us for a consultation.
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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.

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.

New Regulations Passed with a Stated Goal of Attempting to Prevent Further Foreclosure Fraud

In response to allegations of robo signing, fraud, documentation errors, issues with process servers, problems servicing loan modifications, and other similar issues, the Federal government has passed new regulations to curb further wrongdoing. Regulators say the changes represent major reforms that affect nearly every American homeowner with a mortgage.

The federal government forced banks and mortgage servicers to hire outside firms to review their foreclosure policies and procedures. Many banks were falsifying foreclosure documents, improperly notarized affidavits and told homeowners they had to be in default in order to qualify for a modification. Also, many law firms representing lenders helped their clients commit fraudulent acts.

As a result of the regulations, servicers agreed to do the following: (1) provide homeowners with a single point of contact when dealing with the servicer, (2) increase supervision of law firms handling their work, (3) create a remediation process for homeowners who believe they have been treated unfairly, and (4) not to foreclose on modified loans that are not delinquent.

Many consumer groups feel that the regulations have no bite and are calling for further reforms. For example, the latest regulations still allow lenders to start the foreclosure process while a homeowner is attempting to modify their mortgage.

Even though many believe these new reforms are too weak each state’s attorney general is pursuing tougher regulations. In light of the widespread fraud, more needs to be done to protect American homeowners. Let’s hope that the states are able to pass regulations that directly address the wrongdoings and severely punish those that take advantage of Americans who are simply having a tough time making ends meet in this tough economy.

Even though regulations are forthcoming they may still not provide sufficient safeguards. However, an experienced foreclosure attorney can provide that safeguard. If you are facing foreclosure, don’t hesitate to contact Alvarez & Barbara, LLP so we can safeguard your rights and ensure your lender is playing by the rules.

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.

State Legislators Consider Laws that Will Impact Florida’s Real Estate Market

In order to deal with the various problems plaguing Florida’s real estate market State lawmakers are trying to tackle these issues in this year’s legislative session. Florida’s housing woes are very well known throughout the nation. This crisis has created issues with condo associations and affordable housing.

Here are some of the changes our lawmakers are considering:

Associations

In the last legislative session, the Florida legislature passed a law that allows condo associations to collect rent directly from the tenants of delinquent owners. It also allows associations to ban delinquent owners from using the common elements of a condominium such as a pool or gym.

However, associations are still in distress because paying unit owners must subsidize and carry the burden for those who are delinquent. As a result, legislators are considering a bill that would allow associations to cut off amenities such as cable and water that are paid for using association fees.

Would such a law help distressed condo associations? Its certainly possible, but a definite way to help condo associations would be to speed up the foreclosure process. Banks have been accused of delaying foreclosures on condos. They do this waiting for associations to foreclose on liens so that associations are stuck footing the bill for past-due association fees.

Foreclosures and Affordable Housing

The federal government is considering scrapping a handful of its foreclosure prevention programs, so some legislators feel that Florida needs to step up to the plate to address the side effects of the widespread foreclosures. One of these side effects is the shortage of affordable housing. Accordingly, the State is considering pumping money into vacant and abandoned homes and rental apartments rather than on new construction.

However, the most controversial of the foreclosure-related bills is a proposal which would give banks and lenders the option of conducting commercial foreclosures outside of court rooms. While this bill would certainly free up dockets for residential foreclosures, there should be a concern that due process provided by courtroom foreclosures is still guaranteed in extra-judicial foreclosures.

This same bill was proposed last year, and rejected by our law makers.

The proposed bill would allow banks to skip legal proceedings all together unless the homeowner requested that the foreclosure go through the legal system. Such a bill would only further the struggles many homeowners are experiencing by significantly shortening the foreclosure process thereby making it more difficult to save the home.

Of significance, the proposed bill would allow homeowners to go to court, and avoid the non-judicial foreclosure process, only if they make a request within the first 20 days of the foreclosure process. That particular provision is indicative of the importance of immediately contacting our office upon receipt of any foreclosure related papers so as to best assess what options you may have to defend the foreclosure.

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.