Miami Real Estate Attorney Blog

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.

Continue reading "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" »

A recent House Subcommittee hearing brought together bankers and housing regulators to discuss the ongoing foreclosure crises. The one consensus that was reached was that the system needs to be corrected and fixed.

One of the main obstacles that many banks claim they encounter during both the foreclosure and loan modification process are investors who require that the foreclosures keep moving forward even though borrowers are trying to get a modified mortgage to lower their mortgage payments. Another problem involves what to do with the second loans because the holders of both the first and second loans must agree to the modification. Therefore, homeowners may not get payments lowered as dramatically if they have a second mortgage, and that could lead to re-defaults.

Another source of harsh rebuke was the Home Affordable Mortgage Program (HAMP). The results of the HAMP program to date reveals that it is not meeting its objective of preventing foreclosures. Indeed, the Federal Reserve predicts that there will be approximately 2.25 million foreclosure filings in 2011 and about 2 million more in 2012. Florida would again be among the nation's leaders in the number of foreclosure filings, with South Florida leading way in the Sunshine state.

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.

Continue reading "Many of the Problems Associated with the Handling of Foreclosures Comes to Light During Recent Congressional Hearings Investigating Foreclosures" »

"Robo-signing" has become a popular term in the ongoing foreclosure crises, especially in light of the investigation launched by Florida's Attorney General is undertaking at many of the State's foreclosure mills. Often, documents at these firms were being notarized with missing signatures and with the wrong dates.

Plenty of mortgage assignments have surfaced which indicate that these documents have been fraudulently notarized. A mortgage assignment is a document which helps prove a lender has the right to repossess a property. This documentation is of the utmost importance because many mortgages were securitized, sold, and transferred many times over before the recent mortgage crisis. Without this document, a lender will have to spend more money and time proving that it is the legitimate owner of a mortgage.

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

One of the foreclosure mills which is currently being investigated is the Law Offices of David J. Stern, P.A. Stern claims that the errors in these documents are isolated incidents and simply mistakes.

The Herald-Tribune, however, took a look at some of these documents which are public record in Sarasota and Manatee Counties. Their investigation seems to indicate that these alleged errors were purposeful and conducted in a systematic fashion.

Here is some of what they have found:

(1) At least 60 homeowners have lost property based on improper mortgage assignments;
(2) 1 in 10 mortgage assignments filed by Stern's office in Sarasota County have mistakes that violate state law, and
(3) 1 in 3 have either legal violations or other irregularities which call into question their authenticity.

Despite these widespread examples of fraudulent documents, Courts have been slow to stop or reverse foreclosures based on questionable documents. Although this is mostly attributed to the fact that judges must maintain neutrality and allow borrowers to defend themselves, some judges have taken a stand. For instance, two judges out of Marion and Pasco Counties have dismissed cases where Stern's firm misdated mortgage assignments. One of the judges called the filing a "fraud intentionally perpetrated upon the court" and said the lender could never try to foreclose on the homeowner again.

Unfortunately, we may be dealing with these fraudulent documents for years to come. A healthy real estate market depends on the legal transfer of property. Accordingly, there could be many title issues and someone who bought a home from a bank that used questionable paperwork might have trouble selling the property. Some experts "expect a flood of legal challenges based on inaccurate documents." This could lead to previous homeowners suing to get their homes back.

Continue reading "Lawlessness Running Rampant in Florida's Court-run Foreclosure Process" »

Recently, lenders such as Bank of America, JP Morgan Chase and Co., and GMAC have halted foreclosures after they discovered their employees were signing affidavits without verifying any information.

As we have all ready discussed on this blog, many employees were signing hundreds of affidavits a day without verifying any information whatsoever. This practice has become known as "robo signing."

Consequently, "robo signing" has called into question countless foreclosure proceedings in Miami, and across the country. Luckily, some banks are exercising due caution and suspending foreclosures in order to verify already signed affidavits. However, Wells Fargo is not one of these banks. At least not yet.

A Wells Fargo employee testified in a deposition in March that she signed about 300 to 500 foreclosure documents per day and would only verify her name and title. Wells Fargo will not stop foreclosures and says that it has not discovered any problems with the legal documents that have already been processed despite this testimony.

Although they claim their foreclosure affidavits are accurate, this is the second Wells Fargo employee to admit to improperly signing affidavits. In May, an employee admitted that he verified only the dates on up to 150 documents per day and relied on co-workers to ensure the accuracy of the rest of the information.

The recent disconcerting news about unverified bank documents is certainly a call for homeowners to contest foreclosures, even those which have already been completed. JP Morgan has set aside $1.3 billion in the third quarter to cover legal expenses, including foreclosures. JP Morgan initially halted foreclosures in 23 states, but is now extending their review to 41 states. As a result, JP Morgan Chase will have 115,000 cases under review.

Continue reading "Wells Fargo Foreclosures Move Forward Despite Damaging Testimony by Their "Robo Signers"" »

One of the most commonly asked questions for a homeowner is who owns my mortgage? That question is often answered by solving a riddle within riddle. And sometimes the answer still makes no sense. The reason that question is often difficult to answer is because of a electronic filing system, i.e. MERS, employed by the mortgage industry for the past 15 years that has come under rapid fire recently by many foreclosure defense attorneys.

MERS serves as the mortgagee of record for lenders, investors and their loan servicers in the county land records. MERS claims its process eliminates the need to file assignments in the county land records which, in turn, lowers costs for lenders and consumers by reducing county recording revenues from real estate transfers and, in theory, provides a central source of information and tracking for mortgage loans.

When banks sell mortgages to each other and eventually package them into investment securities they use MERS as an electronic repository to keep track of the owners. MERS claims it has 64-million loans in its database; most likely your mortgage is one of them.

If a bank wants to foreclose it simply turns to MERS for the necessary documentation. Doing so is often much faster and cheaper than retrieving local title records.

But the MERS papers sometimes don't reflect the true status of the mortgage.

While MERS' origins were well intended, the subprime mortgage crises has highlighted the system's shortcomings. Indeed, MERS is often at the center of legal challenges disputing the company's right to initiate foreclosures.

It turns out that the electronic filing system, i.e. MERS, that the mortgage industry devised to facilitate the selling of mortgages from one financial party to another results in documentation that is often faulty and therefore not legally binding.

And that is why it is often difficult to answer the homeowner's basic question of who owns their mortgage, and making it that much more difficult for MERS to foreclose on the property that it cannot demonstrate who actually owns it.

Continue reading "MERS: Do They Really Have the Paperwork to Prove Who Owns Your Mortgage?" »

Revelations of continuous fraud by the banks, and their law firms, have resulted in the launching of numerous investigations, and calls for a foreclosure moratorium. Indeed, many banks, including some of the nation's largest, like Bank of America, have temporarily halted foreclosures in Florida.

Struggling homeowners should contact our office to meet with one of our Miami foreclosure defense attorneys today. As the revelations of improper "robo signing" continues to increase, those who are in danger of losing their home to a foreclosure should examine the situation, with the aid of one of our attorneys, in greater detail. The problems the banks are presently experiencing as a result of the "robo signing" allegations arise in large part as a result of foreclosure defense attorneys bringing to light the systematic fraud routinely committed by the banks, their employees, and their law firms.

This foreclosure crises, and mess, only continues to deepen in South Florida. The New York Times reported that Old Republic National Title has decided that it will not issue title insurance to property foreclosed upon by GMAC. Meanwhile, Florida's Attorney General continues to investigate three prominent South Florida law firms to determine if those firms engaged in unfair and deceptive actions in their handling of thousands of foreclosures.

The issue associated with Old Republic is particularly troublesome for many potential home buyers and the real estate market as a whole. After the bank gains repossession of a property in a foreclosure the defaulting borrower is often evicted from the home. After which the foreclosed home is put on the market and ultimately sold. These sales account for approximately 1/3 of all homes currently sold in South Florida.

However, when when foreclosures are done with faulty documentation, such as in instances where "robo signing" practices were employed, it could potentially leave the new owners of the house vulnerable to claims. Title insurance protects the buyer against defects, errors or omissions in the chain of title. Old Republic said in the memorandum that its agents were already reporting written cancellations of contracts involving both Chase and GMAC due to problems stemming from the wide spread practice of "robo signing."

All of this is occurring at a time when the economic recovery is tenuous at best. In August, Miami Dade County's unemployment rate jumped to 14.4% from 13.3% in July. And until unemployment, and the economy as a whole, recovers, the local real estate market will remain in a state of high uncertainty.

Continue reading "The Ongoing Mortgage Meltdown Presents Unique Opportunities for Foreclosure Defense Attorneys in Miami to Assist Distressed Homeowners to Fight to Save Their Home" »

In the past week, Bank of America, JP Morgan, and GMAC have all announced that they were suspending tens of thousands of foreclosures across the country due to apparent improper handling of documents. This could be the start of a new wave of problems for the banks here in Florida.

These colossal blunders by the banks illustrates the need to have an experienced Miami foreclosure defense lawyer on your side. The bank's ongoing mishandling of these foreclosures files just further illustrates why having proper legal representation is so important.

Foreclosures have evolved into a massive industry for both the banks, and a few select group of law firms representing the banks. And that cozy relationship has resulted in Florida's Attorney General launching an investigation on this industry due to an increasingly large volume of mistakes in many foreclosure cases. Indeed, just recently an individual's home was foreclosed on despite the fact that his home did not have a mortgage, and in another instance a local South Florida Judge blasted the bank's foreclosure lawyer for failing to follow appropriate procedure in a foreclosure case.

More than 3 million foreclosures are expected to take place this year across the country, with Florida leading the way. However, some estimate that at least 80% of all foreclosures have some type of documentation problem with the file, which may result in the need to have the foreclosure re-filed.

The reason behind the documentation problems stems from the heavy, and growing, load of foreclosures. Many banks, including Bank of America, JP Morgan, and GMAC, employed people who processed the paperwork as quickly as possible in order to comply with many local rules and procedure. This practice has become known as "robo signing." However, this practice is improper, and many banks have halted the march towards foreclosures because of the fact that "robo signing" is improper.

Continue reading "Miami Foreclosures Are Put On Hold Due To Admitted File Mishandling By Many Major Banks, including Bank of America, JP Morgan Chase and GMAC" »

One would think that a bank could only foreclose on a home if it owns a mortgage on the property. Well, Jason Grodensky entered the Twilight Zone of the housing crisis when Bank of America foreclosed a home he outright owned without a mortgage.

Grodensky and his father purchased the house for cash as an investment property. They purchased the home through a negotiated short sale. Regardless, a court-ordered foreclosure sale took place and the home was purchased by Fannie Mae, a government-backed lender.

Let's construct a bit of a timeline: Countrywide Home Loans filed a foreclosure case on this property in 2008. When Bank of America took control of Countrywide, the mortgage and note were transferred to them. Then in December of 2009, Grodensky purchased the home. One would think that this would end the foreclosure process. But, that was far from the truth.

Thereafter, a motion to dismiss the case was filed in July. The very next day a motion was filed to re-open it and the home was sold in a court-ordered foreclosure sale on July 15. Although Bank of America stated it will foot the bill to resolve the problem, Mr. Grodensky's case brings to light the myriad of problems affecting borrower during these difficult times.

How could this happen? Let's start with the foreclosure courts. Many cases are simply being herded like cattle through the system so the cases can be quickly disposed of. In this environment, mistakes are inevitable. Luckily, Judge Victor Tobin, charged with running Broward's County Court foreclosure system says this is the only time he's heard of this happening.

Next, lenders' lawyers are obviously not doing their jobs in a thorough manner if a home can be illegally foreclosed upon. Here, the Florida Default Law Group represented the lender. Currently, this law firm is under investigation by the Florida Attorney General's Office for allegedly submitting false or misleading documents to court. Perhaps there may be some truth to these allegations, or it could be a function of the fact that firms such as this are handling thousands and thousands of cases all at the same time. For example, a Chase Home Finance executive recently stated under oath that her and a team of eight supervisors sign about 18,000 documents a month. One can only imagine what their lawyers are facing.

Continue reading "Foreclosure Twilight Zone: Bank Improperly Forecloses on South Florida Home" »

The New York Times recently 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.

Another major issue with foreclosures is that its often difficult to prove who owns the note on a mortgage because of the amount of paperwork and transfers that resulted when banks sold these mortgages as if they were shares in a company. Judges are overlooking this and lender attorneys may be easily committing fraud due to how difficult it is to track ownership of some notes.

The Florida Attorney General's Office has received many complaints regarding the alleged improper actions of lender attorneys. Some bank friendly foreclosure firms are even falsifying or improperly notarizing documents. Some are reporting incidents where papers supposedly drafted by the same person have extremely different signatures. Additionally, and as in the case involving GMAC, as reported in our blog, there are even bank representatives that are signing, and notarizing, papers in a wholly fraudulent and deceptive manner.

Continue reading "Florida Foreclosures Being Pushed Through by a Crowded Court System Lead to Errors and Problems in Miami and Statewide" »

The number of people falling behind on their mortgages for the first time is on the rise, according to CNNMoney.com. Additionally, personal bankruptcies are on the rise in Miami Dade County.

Specifically, 3.51% of borrowers were 30 days late in their own payments in the second quarter, up from 3.31% at the end of last year. The shift is a stark reversal from the steady decline in short-term delinquencies during 2009. Moreover, personal bankruptcy filings rose 74%, year over year, to 1,788 cases opened, and 5% over July. Bankruptcy filings are at the highest levels since Congress overhauled the bankruptcy laws in 2005.

These grim statistics serve as a sad reminder of our reeling economy. And the high rate of delinquencies and bankruptcies leave many experts wondering whether a new round of foreclosures is on the horizon.

Alvarez & Barbara, LLP, is a team of experienced and aggressive foreclosure defense attorneys. We use the legal system to help people save their homes -- and we can stand up for you.

Many people wait too long before getting legal help. They delay in the hope that they can turn their financial situation around. If you are behind on your mortgage payments or are having trouble making your monthly payments, you need to take action now. The sooner you call us, the quicker we can start working to save your home. Get help today to assert your rights in these difficult times.

Continue reading "Miami Foreclosure News: More People are Falling Behind on their Mortgage Payments as Personal Bankruptcy Filings Increase" »

According to the South Florida Business Journal, foreclosure filings were up across South Florida in July. Additionally, more homes have flooded the market in the past 10 weeks sparking many questions about the effect of foreclosures on the marketplace.

Florida had the third-highest foreclosure rate in the country with one in every 171 housing units receiving a foreclosure filing in July. Moreover, there has been a 4.6% increase of homes for sale in South Florida since May 31st, and that represents the first two month rise since the housing bubble burst.

It is therefore important to consult, and hire, an experienced foreclosure defense attorney to defend your rights. An experienced foreclosure defense attorney will be able to assess and evaluate what defenses you may have during the foreclosure process, and aggressively advocate your positions in the foreclosure. And when given an opportunity to defend these cases properly, we have actually not only won those cases, but we have secured attorney fees in our favor.

In Miami-Dade County, 1 in every 138 homes fell into foreclosure in July. Foreclosures in Palm Beach County shot up 77% in July, to 3,759 from 2,121 the month before, and were up 41.7% from a year earlier. In Broward County, 1 in every 125 homes was in foreclosure in July. In Broward, there were 6,471 foreclosure filings in July, and that represented a 4.76% increase from June.

These numbers are particularly troubling to the real estate recovery. For the past two years, the housing supply had been plummeting. Indeed, there was a string of 24 straight months where the housing supply declined. However, and in addition to the increase in foreclosure filings in July, the past 10 weeks have also seen an increase in the amount of supply in the market, i.e. an increase in the number of homes for sale. This is a troubling sign as it illustrates that there is still considerable uncertainty in the real estate market.

This new trend could mean further declines in home values and asking prices. For buyers, more inventory means more homes to choose from, and more leverage when negotiating prices. For sellers, this means more price reductions and likely more time for the property to stay on the market before it is sold.

One possible explanation for the increased inventory is that banks are slowly starting to dump more distressed properties back on the market. These distressed properties will no doubt likely drive prices down, and also increase inventory. The result could be further price reductions in a market still searching for a bottom.

Continue reading "July Foreclosure Rates Rise and the Housing Supply Increases Too in Miami and Across the State of Florida " »

Many financial institutions, including Bank of America, are planning on getting tougher with those who do not try in good faith to work out a deal with the bank but who have the capacity to pay.

Proposals that are currently floating around, and being pushed by Fannie Mae, and others, include trying to encourage distressed homeowners to find alternatives to foreclosure by banning those who walk away from their home from getting new loans to purchase a home for seven years. Put differently, if it is determined that you stopped making mortgage payments despite having the capacity to do so, you may be banned from getting a new loan for up to seven years.

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.

Another weapon that many financial institutions have in their arsenal to combat strategic defaults is the pursuit of a deficiency judgment. A deficiency judgment occurs when the financial institution has not only taken the home back, but has also sold the home. However, the proceeds of the foreclosure sale were not enough to cover the full amount of the original mortgage. That difference between the foreclosure sale, and the original mortgage, is often referred to as the deficiency.

If a bank, such as Bank of America, suspects that the borrower simply walked away from the mortgage despite having the financial capacity to pay, the bank will likely have an increased incentive to pursue the borrower and seek recovery of the deficiency by way of a deficiency judgment. It should be emphasized that if a deficiency judgment is properly recorded, it could remain in effect for up to 20 years in the state of Florida. That means that the bank could have up to 20 years to recoup each and every penny, plus interest, of the deficiency judgment.

It becomes important to consult with an experienced foreclosure defense attorney to understand your rights. We have been successful in defending many foreclosure cases when given an opportunity to develop a plan to properly defend the foreclosure.

Continue reading "Strategic Defaults are Under Assault by Bank of America, and others, and May Lead to a Rise in Deficiency Judgments " »

In Florida, unlike many other states, banks must utilize the court system in all foreclosures. In other words, if a bank wants to take your home, they must file a lawsuit against you. As a result, the foreclosure process may actually afford the homeowner with additional opportunities, and time, to remedy the situation.

It should be noted that many Florida banks hired several high-priced lobbyists recently in an effort to persuade our legislators to implement non-judicial foreclosures in Florida. Fortunately, the high-priced assault on homeowners, and their legal rights, in Florida failed. Therefore, foreclosures in Florida will continue to move through our judicial system.

It is therefore important to consult, and hire, an experienced foreclosure Defense attorney to defend your rights. An experienced foreclosure Defense attorney will be able to assess and evaluate what defenses you may have during the foreclosure process, and aggressively advocate your positions in the foreclosure.

For instance, the very first thing that a bank must do to formally initiate a foreclosure proceeding against you is to properly file a foreclosure complaint. Recent changes to our Florida Rules of Civil Procedure mandates that the banks must provide certain verification, under the penalty of perjury, that they actually own the note in question in order to properly file a foreclosure complaint. Failure to do so may result in the dismissal of the bank's case against you.

Additionally, often times banks are required to send you written notification of the default at least 30 days prior to the filing of the foreclosure lawsuit against you. Failure to adhere to this condition precedent may result in the dismissal of the bank's lawsuit against you.

When a foreclosure lawsuit has been filed, a process server will typically come to your home to serve you with the necessary legal papers. Often times, the process server may leave the papers on your doorstep when no one was home, or leave it with a housekeeper, or other person, that does not reside at your home. While the aforementioned circumstances certainly present the opportunity to raise a valid defense that you were not properly served with the foreclosure complaint, it is of critical and paramount importance that you respond within 20 days nonetheless. Even if you believe that the papers were not properly provided to you, if you fail to respond within 20 days 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.

Therefore, and upon receipt of the foreclosure complaint, irrespective of the manner in which you received it, it is critical to consult with an experience foreclosure Defense attorney to begin the process and developing a plan to defend the case and save your home. We have been successful in defending many foreclosure cases when given an opportunity to develop a plan to properly defend the foreclosure.

Continue reading "Miami Foreclosure Defense Lawyers: How the Foreclosure Process Is Initiated & Developing a Plan to Defend the Foreclosure " »

Real Estate experts are anticipating that home sales will slow for the second half of the year. This is due in large part to the expiration of the $8,000 tax credit, for first time home buyers, that expired on April 30. However, those that signed purchase contracts prior to April 30th can still take advantage of that tax credit if they complete their transaction by June 30th.

Additionally, other factors will likely continue to contribute to the ongoing sluggish recovery in the housing market. 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 see stormy days ahead. Indeed, increasingly high unemployment rates, coupled with stringent mortgage lending guidelines, are keeping many prospective purchasers on the sidelines.

All of these factors contribute to the general consensus that our real estate market will continue to struggle to stand on its own without the assistance of government backed programs, like the tax credit for first time home buyers, or a sharp turnaround in the economy as a whole.

In South Florida, with the storm season under way, a natural catastrophe could tip the ongoing real estate crisis into further disarray. If high unemployment rates, and rapidly declining real estate values were not enough, then a strong hurricane directly hitting South Florida and causing extensive damage will only serve to worsen the ongoing real estate crisis here in South Florida.

Continue reading "Real Estate Market Losing Steam as Hurricane Season Approaches" »

Florida remains number three (3) in the country for number of foreclosure filings, according to national statistics reflecting foreclosure filing in May. Nevada and Arizona were the only states that had more foreclosure filings than Florida in the month of May.

In May, one in every 174 Florida properties were in danger of falling into a foreclosure. The May foreclosure rate was actually higher than the foreclosure rate in the month of April. In April, one in every 182 Florida properties were in danger of falling into foreclosure.

However, it should be noted that in South Florida saw fewer foreclosure this past May as compared with May of last year. But the worst is far from over regarding the foreclosure crises, especially for those with adjustable rate mortgages. Now, and as will be discussed below, the recent disaster in the Gulf of Mexico, and massive oil spill, may impact future foreclosure filings as well.

On the other hand, while May saw less foreclosure filings this year as compared to last May, it still brought a spike in foreclosure filings as compared to April of this year. Put differently, there were more foreclosure filings in May than in April of this year. Overall, there were 7,700 foreclosure filings with one in every 127 properties receiving a foreclosure notice in South Florida.

The ongoing foreclosure crisis in South Florida may be further fueled by the oil from the Gulf of Mexico, especially if that oil makes its way onto South Florida's beaches in a hurricane storm surge, or other natural catastrophe. If that were to happen, many homeowners would be faced with the difficult prospect of having to sell depressed property in a region that is beset by natural catastrophe.

Continue reading "Will the BP Oil Spill Cause Florida to Surpass Nevada and Arizona in Foreclosure Filings?" »