Housing Market – Page 7 – Miami Real Estate Attorney Blog

Oversupply of Florida Homes Will Keep Home Prices Low as 1.6 Million Homes in Florida are Vacant

The Census Bureau revealed that 1.6 million homes in Florida are currently vacant. That’s a rise of more than 63% over the past 10 years.

This large amount of inventory will no doubt continue to keep home prices down. The high number of vacant homes will also continue to make the housing recovery a slow one, especially with banks not being very aggressive in placing many of the properties they own on the market. The so called “shadow inventory” coupled with the large amount of vacant homes in Florida, and historically low interest rates, is making it a very good time for buyers to buy a home.

The high number of vacant homes should come as no surprise to anyone who has followed real estate trends here in Florida. Florida, and especially South Florida, was among the hottest real estate markets in the nation during the hey day of the real estate boom.

What does all of is mean? Its tough to tell. The drop in values means the housing market recession is not over. It also means that it would be imprudent to expect another month in which the foreclosure rates drop. After the banks finish reviewing their practices, we may begin to see a surge in foreclosure rates. Also, these reviews may continue for the foreseeable future. This is certainly true in light of the fact that very recently HSBC indefinitely suspended foreclosures to conduct a review of their practices.

On the other hand, it also means that buyers have many wonderful investment opportunities available to them. Indeed, buyers continue to find bargains by purchasing foreclosed homes in record numbers. 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 property.

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, 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.

Florida Foreclosure Filings are Down While Real Estate Prices Continue to Decrease

According to the latest reports, both home values and foreclosure filings are down. While many think that a drop in foreclosures is a sign that economic times are improving, the figures are a bit misleading.

The decline in foreclosures seen in Florida and throughout the nation most likely has to do with the allegations concerning robo-signing and document fraud. Late last year many banks suspended their foreclosures after allegations of robo signing, fraud, documentation errors, issues with process servers, problems servicing loan modifications, and other similar issues, prompted many lenders to slow down the foreclosure process which in turn has slowed down the housing recovery.

Because of these allegations, many lenders are carefully reviewing their procedures and inspecting documents. Other factors that led to the drop include the short month of February and bad weather.

In Miami-Dade County, filings were down 8 percent from January and 66 percent from February 2010. As for home prices in South Florida, they fell 14.5 percent since January of last year. National figures show that home values fell 7.3 percent.

Experts believe that depreciation rates will begin to stabilize and foresee a reduction in the depreciation rates in the spring numbers ahead of an eventual bottom nationally later this year.

Buyers Continue to Find Bargains by Purchasing Foreclosed Homes in Record Numbers

There are some wonderful opportunities for many buyers looking to enter South Florida’s real estate market. Part of the reason for that is because of the continued increase inventory involving foreclosed properties.

That is particularly true when you consider that the gap between the average sale price of a foreclosed home and that of other properties grew wider in 2010, giving home buyers that snapped up foreclosed properties significant discounts.

And that trend should continue because the amount of homes that were foreclosed on last year far outpaced the amount of foreclosed homes that were sold. Buyers who purchased a foreclosed home in 2010, on average, received a 28% discount as compared to those homes that were purchased that were not involved in a foreclosure.

Moreover, foreclosed homes made up approximately one quarter of all homes sold last year. Traditionally, foreclosures account for less than 10% of all home sales.

It should also be noted that many lenders increased the amount of homes that they repossessed last year. Indeed, Banks took back more than 1 million homes last year. This increase in the so-called shadow inventory of foreclosed homes have yet to hit the market.

However, many banks are very reluctant to put too many foreclosed homes on the market at once, because they would face booking sizable losses on the sales. Generally speaking, about 30% of bank foreclosed inventory is on the market.

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.

HSBC has Indefinitely Suspended Foreclosures

The robo-signing fiasco continues. Late last year many banks suspended their foreclosures after allegations of robo signing, fraud, documentation errors, issues with process servers, problems servicing loan modifications, and other similar issues, prompted many lenders to slow down the foreclosure process which in turn has slowed down the housing recovery.

After suspending foreclosures, the banks and their attorneys reviewed their policies and procedures to ensure that any fraud was put to a stop. Most banks have resumed their foreclosures, but HSBC is the latest bank to suspend its foreclosures.

The Palm Beach Post is reporting that HSBC has indefinitely suspended foreclosures because of problems with how the cases are being handled. The suspension came in response to federal inquiries regarding its foreclosures and “certain deficiencies” in how HSBC processed, prepared and signed affidavits along with other documents supporting foreclosure actions. The bank is also evaluating the law firms handling their cases.

In a report released by HSBC, the bank stated it is reviewing foreclosures where judgment has not yet been entered. The bank states it will correct deficient documentation and re-file affidavits where necessary.

While unfortunate that HSBC needed to be scrutinized by the federal government before suspending foreclosures, they should be applauded for taking the necessary steps to prevent fraud and correct already fraudulently filed documents. On the downside, this suspension may have the effect of creating the illusion of less foreclosures. It will also assuredly slow down our economic recovery. However, ensuring that the bank is properly repossessing properties should be the most important concern.

Fraud is widespread in foreclosure cases. It appears to be a systemic problem. Despite this fact, its not easy to spot. It takes an experienced foreclosure defense attorney to spot fraud. But spotting the fraud is not even half the battle. The challenging part is attacking the fraud and establishing the appropriate strategy.

Navigating these waters can be difficult, but we are experienced in handling foreclosure matters. People often think that foreclosure defense basically entails delaying the “inevitable” – a foreclosure. However, many alternatives exist. At Alvarez & Barbara, we don’t buy time to delay the inevitable. We buy to time to find a solution that suits each individual client.
—–
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 Ranks 2nd in the Nation for Mortgage Delinquencies

Both Nevada and Florida continue to lead the nation in mortgage delinquencies. According to recent news reports, Florida’s mortgage delinquency rate is at 14.5% and is only surpassed by Nevada at 14.76%. The delinquency rate is often seen as a precursor to foreclosure. And both Florida and Nevada are among the nation’s leaders in foreclosure filings.

Indeed, 21,671 Florida properties fell into foreclosure in January. The reason that number is down is because of the impact from the recent robo-signing allegations, and other issues related to foreclosures in Florida.

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. Florida’s Attorney General eventually announced an investigation into these alleged practices.

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.

Defaults are on the Rise for those who Qualified for Loan Modifications

The race to modify home loans may be quickening, but so too is the pace of those who are re-defaulting on their home loans even after their loans are modified.

Recent statistics show that 1 in 5 U.S. homeowners whose loans were modified under HAMP were at least 60 days late in their payments a year after their mortgages were modified. On the other hand, the number of active, permanent modifications reached 521,630 as of December 31st under HAMP. But that number is still far lower than the originally intended 3 to 4 million homeowners it was supposed to help.

The pace of defaults also continues to pick up steam. A record 2.87 million properties received notices of default, auction or repossession in 2010. More troublesome yet is that 15.8% of all permanent modifications were at least 90 days late in making timely payments.

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.

Problems Persist in Today’s Housing Market due to Foreclosures which Will Delay South Florida’s Housing Recovery for at Least Another Year

The housing bust hangover continues to linger over South Florida. Cumulative home prices are expected to decline between 6 to 8% for the next 7 to 8 months and perhaps bottoming out towards the end of 2011.

A main culprit behind the housing market’s continued struggles involves all of the recent scandals that have plagued our real estate market.

The slow down in the housing recovery ultimately means that the real estate market won’t make a full recovery for at least another year. The reason being is that the slowdown of foreclosures has pushed out the time frame when the real estate market would have gotten through the critical mass of foreclosures that would have led to stabilization. As a result of all these foreclosure related problems, that time frame for a recovery has now been pushed back probably at least another year.

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’s Real Estate Market is Attracting Many Real Estate Investors

When mentioning the foreclosure crisis it’s hard to think of any positive news. However, recent news reports have provided South Floridians with at least a few reasons to have a sliver of hope. First, its cheaper to buy than rent a home in Miami. Second, at least one economist believes that Miami’s recovery has been better than most people thought.

According to a report released by Trulia.com, Miami tops the list of places in the US where it’s cheaper to own than rent a home. The website noted that the foreclosure crisis forced many homeowners to become renters. The increased demand for rentals caused the cost of rentals to rise. Trulia.com also found that in 72 percent of America’s 50 largest cities , it is more affordable to buy than rent a two bedroom home.

The median sales price for homes in Miami was $185,000, which denotes a 38.3 percent price decrease since the prior year. Perhaps this is good news for those who are seeking to invest in a property they would like to rent.

Mark Vitner, a Wells Fargo economist, may agree that now is the time to invest in Miami. On Friday, Vitner spoke to an audience at the Seminole Hard Rock Hotel & Casino about the state of South Florida’s economy.

Despite ranking near the bottom when it comes to underwater homes, employment rates, and foreclosures, he said Miami has been recovering well. Miami-Dade has posted some of the state’s strongest gains in taxable sales and job creation. Vitner believes that South Florida’s popularity with international tourists, especially those from booming South American economies, has helped Miami through this recession.

The economist stated that international tourism provided a huge boost to travel and retail in Miami. Orlando has also been helped by international tourism. Another reason for the boost in retail sales?
One real estate consultant credits delinquent homeowners who are no longer making mortgage payments, but are spending the money.
—–
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’s Foreclosure Defense Attorneys Continue to Push for Alternatives to Foreclosure to Help the Many Struggling South Florida Homeowners Facing Foreclosure

However, Florida homeowners who are struggling to make their mortgage payments may be able to get money from a billion-dollar fund run by the State. According to the Palm Beach Post, thousands of delinquent homeowners may be eligible to receive up to a year and a half worth of mortgage payments. Applications for this program called Hardest Hit will be available next month.

This will be the first time the billion dollar fund will be available statewide. Lee County homeowners were able to apply for the program while the State tested it.

The highest amount a person can receive is $35,000. Hardest Hit is aimed at unemployed homeowners or those who are working but don’t make enough money to pay their mortgage. The money can be used to make loan payments for up to 18 months and to bring delinquent loans current.

The State of Florida believes the program can help about 20,000 people. This is certainly a modest amount of help considering that about 19 percent of Florida borrowers are either in foreclosure or 90 days past due.

In the event a homeowner who accepts funds from this program sells his home within five years or falls back into foreclosure, they will have to return the money to Florida. However, paying back the State takes second place to paying off the bank and other liens on the property.

Since Florida started testing back in October, most major lenders have cooperated. This includes major banks such as Bank of America, Wells Fargo, Chase, and Citimortgage. Fannie Mae and Freddie Mac have also provided directions to servicers regarding the State’s program.

Those who didn’t qualify for funding during the pilot program were denied because many had more than one property or owed more than $400,000 on their loan.
—–
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.

Homes Being Repossessed in South Florida due to Foreclosures Spiked Up in 2010

South Florida bank repossessions significantly increased in 2010 with an almost 80 percent increase over 2009. In total, banks took back 54,000 properties in Miami-Dade, Broward, and Palm Beach counties.

Miami-Dade County had the most activity with 23,000 repossessions taking place. However, this should not be too surprising since Miami-Dade County also has the largest population amongst the three counties.

Broward County follows in second with a total of 20,400 repossessions. Palm Beach ranked third with 11,000 repossessions.

As a result, 2010 takes the prize and wins the distinction of producing the most repossessions since the real estate crash started in 2007. It was nearly double that of 2009 when lenders repossessed 30,400 homes. 2008 had 26,650 repossessions, and in 2007 there were 10,100. This figures certainly show us how the real estate market has progressively worsened.

The high 2010 figures are the result of a lengthy foreclosure process that began back in 2008. It is possible that the strong absorption of new condos may be laying down a foundation for a stronger rental market going forward.

Its expected that the annual rise in repossessions will not hold in 2011. Foreclosure filings, the first step to repossessing a home, were down in 41 percent in 2010. The drop, however, may be in light of all the “robo signing” allegations, and on going investigation launched by Florida’s Attorney General regarding certain law firms and other issues pertaining to process servers and 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.