Housing Recovery – Page 4 – Miami Real Estate Attorney Blog

Nearly Half of the Mortgages in South Florida are Currently Underwater

According to recent news reports, nearly half of the mortgages in South Florida are currently underwater. Specifically, 46% of all homes in Miami are currently underwater, while 49.4 % of homes in Ft. Lauderdale are underwater.

Nationwide, 22.7% of all residential properties with a mortgage was underwater. However, that figure was down from 23.1% in the fourth quarter of 2010.

Nationally, Florida was 3rd with 46% of all residential properties currently underwater. Florida ranks behind Arizona (50%) and Nevada (63%).

The current real estate market, and ongoing foreclosure, and housing, 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.

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

With more homes falling to foreclosures, many formerly-owned homes are now finding themselves occupied by renters.

The shift from owner-occupied homes to renter-occupied homes has no end in sight due to the ever lasting housing-market collapse and recession that is currently plaguing the United States. Nationwide, 34.9% of occupied homes – including houses, condos, and apartments – were rented in 2010, up from 33.8% in 200.

Florida, a state that has been hit relatively hard by foreclosures, has seen a 5% growth in renter-occupied housing. Prior to 2006, the renter-household market was “fairly stable,” but since 2006, the U.S. has seen an increase of about 692,000 house rentals a year. This figure is astronomical when comparing it to the number of owner households, which is falling at an average of 210,000 a year.

Several factors will boost rental growth for years to come, including continued forecloses, continued drops in home prices that frighten buyers and potential cuts to government subsidies supporting home ownership. Despite a large percentage of renters favoring home ownership over renting, renters will have to contend with the current status quo until the housing market recovers.

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

For instance, allegations of robo signing, fraud, documentation errors, issues with process servers, problems servicing loan modifications, and other similar issues, have prompted many lenders to slow down the foreclosure process which in turn has slowed down the housing recovery.

Consider Your Options. Contact Us Today.

We have been successful in defending many foreclosure cases when given an opportunity to develop a plan to properly defend the foreclosure.

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.

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

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

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

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

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.

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

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

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

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

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

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

Mortgages are Being Dumped at a Record Pace

For the first time in 13 years, homeowners are saving more than they’re spending on high mortgage interest. Today, mortgage interest consumes 5.27% of the nation’s after tax-income.

Historically low interest rates, defaults and refinancings have shaved more than $100 billion off the nation’s annual mortgage bill – an amount comparable to all the unemployment benefits for one year or this year’s Social Security payroll tax cut.

To compare this drastic drop, this after tax-income percentage rate is comparable to those present in the 1980s and ’90s. In other words, consumers are distancing themselves from high risk, “cash out” loans and replacing the traditional 30-year mortgage to 15-year loans.

In short, homeowners are shaking off high mortgage payments by taking advantage of historically low interest rates. Indeed, homeowners have trimmed interest payments by 11% from the peak of 2008.

The nation has slashed total mortgage debt from nearly $11trillion during the peak in 2008 to $10.3 trillion in the first three months of 2011. This trend shows no sign of slowing. About 9% of all borrowers are behind on their mortgages, and 4.6% of homes are in foreclosure.

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.

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.

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.
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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.

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.