Housing Market – Page 8 – Miami Real Estate Attorney Blog

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.
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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.

Real Estate Sales Increase in November but Foreclosed Properties are Still Driving Prices Down

The USA Today is reporting that existing home sales rose in November as compared with October. This is an indication that our housing market may be slowly awakening from its long slumber.

The real estate recovery, however, will continue to move in a rather uneven pace for the foreseeable future. While demand has steadily improved since bottoming in July following the expiration of the buyer’s tax credit, other factors are driving the rather uneven real estate recovery.

For instance, the glut of foreclosed homes continues to drive down home prices and continues to hurt demand for new homes. To illustrate this phenomenon one only needs to look at the numbers for the homes sold last month. During that time period, foreclosed homes sold at a 15% discount as compared to non-distressed properties. In short, foreclosed homes were selling for less than non-foreclosed homes, and, as a result, driving down prices as a whole.

Because of the large inventory of foreclosed homes still unsold, many anticipate that real estate prices will continue to decline through most of 2011. Indeed, many are anticipating that banks will repossess one million homes in 2011, and that is on top of the one million homes they repossessed in 2010. These foreclosed homes will no doubt continue to drive prices down in 2011.

Another significant factor driving today’s real estate market is job growth. Many economists are predicting that the US economy will add close to 2 million jobs in 2011. Until the job situation is truly improved, however, the real estate market, and recovery, will remain rather uneven.

Additionally, many homebuilders anticipate that 2011 will also prove to be a very difficult year. This year proved to be one of the worst years for homebuilders in decades. However, many homebuilders are claiming that the groundwork for a recovery has been laid because of the historically low interest rates, low prices, improving consumer confidence, and anticipated growth in job creation.
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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.

“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.

High Unemployment Continues to Plague the Housing Recovery

A recent survey shows that Americans have a negative attitude towards the housing market recovery. More than half of Americans surveyed last month said they don’t believe a recovery will occur until at least 2013. Reports about robo-signers abusing the foreclosure process has contributed to this attitude. Another survey shows that about 70 percent of renters would wait at least two years before they would buy a property.

The 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.

The underlying problem with today’s housing market is the continued high number of inviduals that remain unemployed. If unemployment rates stay high – like those we see in South Florida – then the housing market cannot recover. While the housing market is taking small steps toward a recovery, it will not fully rebound until unemployment is lowered.

Even those who are employed now are not buying homes. This is probably due to the fear of taking on the risk of a long-term financial commitment in a climate where people feel they could be next to lose their jobs.

A survey also demonstrated that more Americans are willing to walk away from their homes if they owe more on their homes than what it is worth. This typically referred to as a strategic default. Compared to 41 percent in May, 48 percent of homeowners with a mortgage would consider a strategic default today.
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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.

Miami’s Housing Recovery Is Being Impacted by the Growing Number of Foreclosures and the Ever Increasing “Shadow Inventory”

“Shadow inventory” is beginning to have an effect on home prices. According to the Miami Herald, the prices of existing South Florida homes increased as the number of sales dropped in October. This drop in home sales comes amidst a slowdown in foreclosures by banks due to alleged irregularities in procedures.

It is believed that this trend is temporary now that foreclosures have resumed. Nevertheless, the slowdown could lead to an increase in the amount of homes that are “shadow inventory” and slow down a long-term recovery. The term “shadow inventory” describes homes which have already been repossessed by banks, but have yet to be listed for sale.

In Miami-Dade County, single family home sales were down 6.2 percent from September and down 4 percent from last year. The only year-over-year increase occurred in Miami-Dade’s condo market. Condo sales were up 17 percent from last year, but down 9.1 percent for the month.

In Miami-Dade County, the median price for a single family home sold in October was $199,100. This represents a 5.9 percent increase from September. For October condo sales prices rose 8.4 percent to $107,000.

The increase in prices can be attributed to the fact that banks have dramatically reduced the amount of properties they list for sale with an agent. As such, since less lower-priced homes are being sold, median prices increased.

The long-term effects of the foreclosure suspensions are not clear. Some experts envision a years-long waiting period before the local housing market returns to a normal level. Others believe the effects will be minimal.
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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 Ranks No. 1 Nationally in Mortgage Fraud

Recent figures reveal that Florida ranks first in the nation as it relates to those whose mortgages are seriously delinquent. But that is not the only dubious distinction where Florida tops the nation. Now, reports indicate that Florida can also claim first place in the number of mortgage frauds.

If you feel as though you have been victimized by mortgage fraud, don’t despair. Our Miami mortgage fraud lawyers will carefully evaluate the facts and legal issues in your case. If we believe that you are a mortgage fraud victim, we will aggressively represent you in your case against the predatory mortgage lender — fighting for your rights and seeking justice in the legal system. If you are a victim of mortgage fraud by a bank or mortgage lender, we will use our legal experience in real estate and mortgage fraud to stand up for your rights. We want to help you keep your home.

According to MortgageDaily.com, which tracks criminal and civil cases across the country, Florida has the highest third quarter score on its Mortgage Fraud Index. The website gave Florida a fraud index score of 143. This easily surpassed numbers two and three on the list. Coming in second place is California with a score of 100. New York is in third place with a score of 70. In terms of real dollars, there were $110 million in mortgage fraud accusations levied in Florida.

Many of the mortgage fraud busts have happened in South Florida, and specifically in Miami. Some of these busts were frauds which were perpetrated with false loan applications and in other cases involving straw buyers. In some of these cases both mortgage brokers and title agents were picked up in these busts, and many attorneys have even lost their ability to practice law in Florida as a result of the rampant fraud.
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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 Leads the Country in the Number of Homeowners who are Delinquent in their Mortgages

According to the latest figures, Florida still leads the nation in the percentage of homeowners who are seriously delinquent on their loans.

Down from 20.13 percent, 19.52% of borrowers were either 90 days past due or in foreclosure in the third quarter. When adding in borrowers who are 30 and 60 days late, one quarter of Floridians are behind on their home loans.

Unfortunately, Florida holds the number one spot with a sizeable margin. In Nevada, the state with the second greatest amount of homeowners who are seriously delinquent, the rate stands at 17.83%. Illinois ranks third with a 10.77% of homeowners that are seriously delinquent.

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.

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 real estate market remains unsettled in large part due to the continued foreclosure crises.

For instance, the economic recovery that is currently taking place is largely a jobless one. In fact, since 2007, when the recession began, South Florida’s workforce has only recovered to about 90% of where it was before the recession began. Since South Florida’s economy was so dependent on the housing market, it will likely take some time for South Florida’s economy to recover given the ongoing real estate crisis that is impacting all of us on a daily basis here in South Florida.

Additionally, another potential problem for our local economy, an economy that is still very dependent on real estate development, is that many lenders are increasingly reluctant to make new construction loans to developers. Now that certain tax credits have expired, coupled with the increasingly sluggish real estate market, builders continue to see stormy days ahead. Indeed, increasingly high unemployment rates, coupled with stringent mortgage lending guidelines, are keeping many prospective purchasers on the sidelines.

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 Real Estate Values Continue to Plunge as Foreclosures and Short Sales Continue to Drive the Market

Real estate values continue to decline in South Florida as the local real estate market is still searching for its bottom.

Of all the South Florida homes that were sold between June and September, nearly half of them were sold for a loss. Specifically, 45.2% of all South Florida homes were sold for a loss in the last quarter.

The continued slide in real estate prices have further increased the amount of homeowners that are currently underwater on their mortgage. Since the peak of real estate values back in June 2006, home values have dropped 53.5% in South Florida. This has left almost half of all single-family homeowners underwater in South Florida. Put differently, approximately 42% of all single-family homeowners in South Florida currently owe more on their mortgage than their home is worth.

Many factors are contributing to the continued decline in real estate prices in South Florida. For instance, the continued high rate of foreclosures coupled with a weak job market are both continuing to influence housing prices, and the housing market, as a whole.

Short sales also continue to dominate the market. Indeed, sellers continue to slash their prices, making it a very attractive buyer’s market. In fact, many buyers are finding very attractive deals in this market. That is illustrated by the fact that nearly 21% of all south Florida home sellers reduced prices in the third quarter. Moreover, short sales and foreclosures continue to account for most real estate transactions and are currently accounting for more than 60% of all south Florida sales.

The current real estate market, and ongoing foreclosure crises, presents all sorts of issues that must be properly navigated by a struggling homeowner. 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 toll free at 1-866-518-2913 or at 305-263-7700.

The Florida Real Estate Market Remains Unsettled Due in Large Part to the Continuing Foreclosure Crises

The housing market today remains sluggish and continues to encounter many problems and obstacles. They include a weak economy, sluggish hiring, tight mortgage underwriting, falling home prices, and slowing home sales.

But probably the most disastrous factor facing our current housing market is the potentially devastating number of foreclosures that will likely occur over the next few years.

Due in large part to the ongoing foreclosure crises, many analysts are projecting home prices to slide another 8% nationally. Today, homes are cheaper, and while that is fairly good for buyers, the cheaper homes also speak to the growing consensus that our housing market is still far from stabilized. Indeed, home prices continue to fall because sales are not taking off. Without buyers, the market cannot bottom out.

Of course, nobody is buying homes when they can’t find a job. And still more people cannot hang on to their homes because they’re out of work. The continuing economic woes will also likely result in nearly 1,000,000 homes being repossessed this year.

On the bright side, many foreign buyers have continued to purchase properties in some of the hardest hit areas such as right here in South Florida. But if the “robo signing” problems continue, those investors may flee the market. And if they do, that will continue to foil the housing recovery in Florida, and nationally.

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