Miami Real Estate Attorney Blog

One of the tragedies of the real estate collapse is that fewer Americans own their homes today. Not only that, but the American that's do own their homes today have seen the value of those homes decrease rather dramatically over the span of the past several years.

The United States Census Bureau recently reported that the nation's home ownership rate fell to 66% in the fourth quarter, continuing a seven year drop from the one quarter peak of 69.2% in 2004. At the same time, United States home prices fell 1.3% in November from October and were 3.7% below 2010 levels.

These statistics illustrate that the recent real estate collapse was the worst that this nation has experienced since the Great Depression of 1930's.

Locally, we are seeing mixed signals. On the one hand, 2011 was actually a record year. More properties were sold in 2011 than at any other time in our county's history. And that includes during the height of the real estate boom.

Those sales are bolstered in large part by foreign buyers that see great value in a depressed market such as Miami. International investors, with wads of cash, are buying fantastic properties at bargain prices in Miami.

Additionally, interest rates continue to hover at historic lows that we are not likely to see for another generation.

But all of that does not spell the end of the bust associated with the real estate market. Indeed, inventory is still high, and it is still unknown how much "shadow inventory" the banks actually possess. Foreclosures also continue to rise.

Often, an attorney is needed to navigate these troubled waters. We currently represent lenders, borrowers, buyers, sellers, and developers. This broad array of experience allows us to effectively take a multi-faceted approach to our clients' legal issues. No matter what you or your business's needs may be when it comes to real estate, don't hesitate to contact Alvarez & Barbara, LLP.

Continue reading "Has Miami's Real Estate Market Hit Bottom? Is It Time to Buy Now?" »

Thanks in large part to international buyers purchasing real estate in Miami-Dade County, 2011 set records for the number of real estate sales for all years on record. Yes, even more than the years associated with the real estate boom, and, in particular, the peak of the boom back in 2005.

A total of 24,929 combined condominiums and homes were sold in Miami-Dade County in 2011, up 46% from 2010 and up 4%when compared to 2005.

Condominium sales surged 54%, to 15,009 in 2011, and home sales rose 36% to 9920. Interestingly enough, some are suggesting that Miami Dade County is on the verge of a real estate boom. Demand is particularly high for properties located in the design District, Brickell, and Miami Beach.

A major reason for the record numbers, and boom, is the fact that international investors, with wads of cash, are buying fantastic properties at bargain prices in Miami-Dade County.

Additionally, interest rates and real estate prices remain at historic lows. Bank-owned properties and short sales, comprising "distressed sales," also helped fuel the real estate market last year. In December, 54 percent of all closed residential sales in Miami-Dade were distressed, compared to 59 percent in December 2010. Unlike a year ago, there are now more short sales closing than bank-owned properties.

Although we're hearing some good news, today's current real estate market, and ongoing foreclosure crisespresents all sorts of issues that must be properly navigated.

Often, an attorney is needed to navigate these troubled waters. We currently represent lenders, borrowers, buyers, sellers, and developers. This broad array of experience allows us to effectively take a multi-faceted approach to our clients' legal issues. No matter what you or your business's needs may be when it comes to real estate, don't hesitate to contact Alvarez & Barbara, LLP.

Continue reading "Miami's Real Estate Market was Bolstered by Foreign Buyers for a Record 2011 in Terms of Number of Homes Sold" »

Miami's real estate market is heading into 2012 showing signs of revival.

Over the past few months, our firm has seen sales trending up, listing inventories falling, the supply of lender-related properties stabilizing, as well as multiple offers being placed on homes in some neighborhoods. Additionally, foreign buyers, especially those in Central and South America, continue to come to South Florida to snatch up bargains.

As we look behind the numbers, we see that Miami, in particular, has gone from ground zero for the subprime mortgage crash to having a healthy inventory of properties that is only half the size from a year ago. Today, Miami is only reporting one foreclosure for every 407 home, compared to the national rate of one per every 213. Condo sales have also increased 79% in the first five months of the year. That increase in condo sales, again, is fueled in large part due to foreign buyers buying property in South Florida.

These numbers point to a mini-recovery in Florida, and especially in Miami. Indeed, while prices for continued to drop in Broward and Palm Beach county, they are not in Miami. In October, for instance, Miami-Dade County actually squeezed out a price increase for home sales.

While all of this points to a revival of sorts to Miami's real estate market, the recovery is still rather tenuous. Banks have pulled back the filing of foreclosure actions due to the ongoing robo-signing scandal. Additionally, unemployment remains high. And for their to be a true correction, and recovery, unemployment needs to be lowered.

On the other hand, there are many alternatives to a foreclosure. Many homeowners are exploring those options. It is best to be pro-active in this real estate market.

Continue reading "Miami Leads Florida's Housing Comeback" »

If the current foreclosure crisis were a football game, we would be in half time right now. Based in large part on new data that was recently released it appears as though the foreclosure crisis is only about halfway over.

New home foreclosures recently increased while the number of borrowers falling behind on their payments decreased slightly. Not surprisingly, borrowers with subprime adjustable mortgages saw the biggest jump in foreclosures recently.

Almost 5% of all subprime loans recently entered into the foreclosure pipeline, up from 3.6% in the second quarter. One of the main reasons for that increased foreclosure spike was the expiration of the foreclosure moratorium placed on a number of states. In other words, many states were recently given the go ahead to file new foreclosure actions against borrowers who have fallen behind on their payments.

Additionally, another reason for the recent spike in foreclosure activity is that many of the borrowers who have fallen behind were not approved for a loan modification or other program to help save their home.

On the other hand, the pace of new foreclosures for all loans for this time last year was actually down. Simply put, there were less foreclosures filed at the same point this year than there were compared with last year at this point in time.

Overall, the pace of new foreclosures for all loans was up by almost 11% in the third quarter from 9% in the prior three-month period. That's down from 1.3% in the same period a year ago.

As for the overall health of the nation's current real estate market, a lot still depends on the economy of the whole. The economy is still not producing jobs fast enough to aid the nation's housing market.

Additionally, continued improvement in home sales and home prices will depend heavily on the volume of foreclosed homes in the housing market. Recent housing data suggests that many lenders have barely made a dent in the overall inventory of foreclosed homes.

As such, there is no question that this is a buyer's market. Indeed, South Florida's real estate market has picked up some steam recently due in large to foreigners investing in South Florida.

Continue reading "The Foreclosure Crisis Continues to Haunt South Florida's Real Estate Market" »

Almost half of all single-family homes with a mortgage in South Florida are currently under water. An underwater home loan is one where the loan balance is greater than the fair market value causing the homeowner to be upside down on the mortgage.

The State of Nevada leads the country in underwater homes, and Las Vegas leads the country. The State of Florida ranks third in the country, and Jacksonville, Tampa and Ocala have the highest percentage of underwater homes in the state.

Since the housing market peaked in 2006, thousands of homeowners have seen their home equity disappear while home prices decreased more than 50%. Because of the decline in home prices, coupled with the loss of home equity, many homeowners have stopped paying their mortgages and simply turned the home over to the bank.

When facing an underwater mortgage, as well as higher property taxes and home insurance, walking away from your home could be extremely tempting to homeowners.

However, walking away from your home does not come without consequences, and often times those consequences are negative.

It is imperative that you understand both the pros and cons associated with walking away from your home. The negative implications could haunt you for years. But the positive ramifications may set you free financially.

There are also often times many alternatives available to you in an effort to avoid foreclosures. Indeed, one such potential option may be to explore the government's newly enacted and revised re-finance program, i.e. HARP.

Continue reading "Growing Number of Underwater Homes in Miami are Causing Many to Walk Away from their Homes" »

Since President Obama took office, the City of Weston has seen a 15.1% increase in home values. That makes the City of Weston the top performing housing market in the nation since February 2009 to August 2011.

On the other hand, and just 50 miles south of Weston, the City of Homestead earns the mark as having the worst performing housing market in that time span. The City of Homestead has seen home prices drop 48.8% since February 2009.

South Florida's real estate market has been recently aided with the influx of foreign purchasers. But South Florida's real estate market still has a long way to go before it fully recovers. The disparate treatment in cities separate by just 50 miles is indicative of the up and down nature of our real estate market.

Recently, renewed efforts to shore up the housing market has included a new program designed to help homeowners re-finance their homes. The re-vamped HARP is designed to allow people who owe significantly more on their mortgages than their properties are worth to re-finance their home.

Meanwhile, the banks are continuing to churn through the high volume of foreclosures on their ledger with no end in sight. This shadow inventory of homes will hinder the full recovery of the housing market for years. Until the shadow inventory of homes is fully diluted, South Florida's housing market will not return to a healthy thriving market.

Continue reading "We're Still Far Away from a Full Housing Recovery While South Florida Exhibits the Best and Worst of Today's Housing Market" »

The Federal Reserve recently announced details of its plan to revive the housing market. The plan is called "Operation Twist."

As a result of said announcement by the Fed, the average rates on conventional 30 year fixed mortgages fell to 4.01%. Rates on 15 year mortgages fell to 3.28%.

Operation Twist may lower these mortgage rates even further since the Fed's stated objective of Operation Twist is to push long term rates down further. Especially since mortgage rates tend to track the yield on 10 year Treasury notes.

But low rates have done little to boost homes rates or refinancing to date. Indeed, recent reports are rather gloomy regarding sales to date. Moreover, banks are apparently ramping up their foreclosure efforts and pushing more homeowners into foreclosure.

All of this suggests a very difficult real estate market. Accordingly, struggling homeowners should contact our office to meet with one of our Miami foreclosure defense attorneys today. 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.

Homeowners have many alternatives available to them to fight a foreclosure or even shrinking home equity. But homeowners must be armed with as much information as possible to decide what is best for them regarding the ongoing foreclosure crises.

Bank of America is leading a renewed charge into pushing more homeowners in to foreclosure.

The first step in any foreclosure is to receive an initial default notice. The number of homes across the country that received an initial default notice increased 33% in August from July. It was the largest monthly increase since the housing bubble crashed back in August 2007. In places like Tallahassee, Florida, the spike was most evidence in that an additional 81% of homeowners received default notices.

A closer look at those numbers reveals that the largest increase of foreclosure claims came from Bank of America. By taking action on its foreclosure pipeline, Bank of America claims it is setting the stage for a industry wide housing market recovery.

However, many are claiming that Bank of America is increasing its foreclosure work while failing to clean up the shoddy paperwork practices that resulted in a moratorium in foreclosures last year.

Additionally, Bank of America recently entered into an $8.5 billion settlement with a group of large investors who claimed the bank had sold them poor quality investments based on faulty mortgages. Clearing the backlog of foreclosures and defaulted loans is a key part of the terms of the settlement.

Bank of America has to reduce the number of risky mortgage loans and also find 3rd party companies that can help speed up the process. That includes helping homeowners modify their loans or moving defaulted parties into foreclosures and pushing for foreclosure sales.

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.

Homeowners today have seen their equity shrink to the lowest percentage since the 1940's.

Average home equity plunged from more than 61% at the start of 2001 to 38% earlier this year. While that drop does not come as a surprise, it comes as home prices in many major cities, such as Miami, have reached their lowest levels since 2002.

And we are not out of the woods yet. Many experts would not be surprised if property values decline another 10% to 25% in the next 5 years.

Indeed, a backlog of foreclosures are poised to hit the market which means prices may still be depressed. Given the high number of both unsold properties, and foreclosures still in inventory, home builders are dissuaded from starting new construction projects.

Also, the housing recovery is also being dampened by high unemployment coupled with stricter lending practices by many of the nation's leading banks.

Struggling homeowners should contact our office to meet with one of our Miami foreclosure defense attorneys today. 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.

Homeowners have many alternatives available to them to fight a foreclosure or even shrinking home equity. But homeowners must be armed with as much information as possible to decide what is best for them regarding the ongoing foreclosure crises.

March through August are typically the peak buying months in the United States.

But this year, Americans purchased fewer new homes than at any point in history since the records began to be maintained. And the sales of previously occupied homes were not much better. Combined, total sales this spring and summer were the weakest on record dating back to 1963.

Those figures highlight just how poorly the housing market is currently doing, and suggests that a full housing recovery is still years away.

Not even historically low home prices coupled with historically low mortgage rates are enticing people to purchase a home. Even in a buyer's market, no one is buying.

Indeed, the economy is barely growing and national unemployment rate continues to remain extremely high. As such, many people see a home purchase has too big of a risk.

Others simply can't afford the 20% down payment that many lenders are requiring, or simply don't want to deal with the hassle of the extensive paperwork that lenders today also require.

Many experts do not expect sales and prices to make a healthy recovery until at least 2015.

In a healthy six-month buying season, about 400,000 new homes would sell. However, this year approximately 168,000 new homes were sold from March through August. And that is less than the approximately 180,000 that were sold for that same period last year.

Our firm is prepared to assist you in navigating the difficult real estate climate that currently exists here in South Florida. Whether you are buying or selling a home, or if you are facing a foreclosure, or short sale, please call our office to discuss your potential options.

Following the greatest housing crash since the Great Depression, home lending standards have tightened to their strictest levels in decades.

Tight home loan credit is affecting everything from home sales to household finances. Many borrowers are struggling to qualify for loans to buy homes. Others can't take advantage of some of the lowest interest rates in 50 years because they don't have enough equity in their homes to refinance.

Those who can get loans typically need higher credit scores and bigger down payments than they would have in recent years. They face more demands to prove their incomes, verify assets, show steady employment and explain things such as new credit cards and small bank account deposits.

Even then, they may not qualify for the lowest interest rates.

Sometimes, even borrowers with seemingly pristine finances are struggling to close home loans.

Plus, nearly all borrowers are facing more documentation requests. In other words, the era of "no docs" is over.

Except for a few years leading up to the real estate crash -- when some borrowers got loans while providing little if any documentation of their assets and income -- borrowers have long had to supply two years of tax returns, pay stubs and financial statements when applying for home loans.

Now, lenders want tax records to come directly from the IRS, as well as from borrowers. The IRS releases the records after applicants sign forms giving it permission to do so. Instead of two months of bank statements and pay stubs, lenders may want them for each pay period until the loan closes.

Higher standards do appear to be reducing loan defaults, which means fewer foreclosures in the future.

Fewer than 1.3% of loans originated in 2009 that were resold to Freddie Mac and Fannie Mae went into default after 18 months, government data show. That's down from more than 22% default rates for 2007 loans and about 3% default rates in 2002.

Yet, many argue that the tight standards are a drag on the economy.

Contact us today to discuss your real estate needs.

Florida currently has the nation's highest inventory of homes in foreclosure. To be more exact 14.4 percent of mortgages in Florida are currently in foreclosure.

In addition, the Mortgage Bankers Association states that nearly one in four mortgages in Florida is either past due or already in foreclosure. There are currently 3.2 million mortgage loans in Florida and about 739,000, or 23.1 percent, are in foreclosure. Another 8.7 percent of properties are at least 30 days behind on payments. Nationally, the delinquency rate is 8.44 percent.

The subprime mortgage market has been blamed for the real estate crash we are currently experiencing. Accordingly, its no surprise that more than 50 percent of the state's subprime loans are in default.

Although we've been able to find pockets of good news in this real estate market, we are still deep in this real estate recession. With Florida being the 4th largest state in the country coupled with the real estate boom we experienced in the mid-2000s, its no surprise that Florida ranks first in the number of homes in foreclosure.

Nevertheless, every cloud has a silver lining. The depressed market has led to low property prices. In turn, this is a great time to purchase property. As we've discussed, many, including foreigners, are taking advantage of Miami's real estate market.

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

Continue reading "Florida Leads the Nation in the Number of Homes in Foreclosure" »

Location, location, location - that saying couldn't be more true in South Florida's real estate market. Some South Florida neighborhoods have seen 20 percent appreciation while other neighborhoods have seen 30 percent drops.

Unfortunately, the neighborhoods that are seeing depreciation outnumber the zip codes which are on the upswing. As a result, overall numbers are still on a downward trend. The zip codes in the negative territory are mostly low-income and inner-city locales.

According to a recent report in the Miami Herald, its tough to say whether Miami has hit the bottom of the real estate market. A major factor contributing to price depreciation is a concentration of foreclosures. Obviously, the greater the concentration of foreclosures, the greater the depreciation.

The biggest winners in this market are areas with large numbers of new luxury and waterfront condos, solid bedroom communities in well-established suburbs and the City of Miami Beach. The biggest losers are located in the southernmost parts of Dade County and inner-city neighborhoods like Brownsville, Opa-locka and Little River.

It seems like this news is just like South Florida's real estate market. It has its ups and downs and its positives paired with negatives. We are fortunate to even see a sliver of good news in this market. In fact, South Florida's real estate is being lauded by national media outlets as being the example of a community that may be nearing the bottom of the real estate market recession. This may be the time to take advantage of low prices, low rates, and purchase real estate.

At Alvarez & Barbara LLP, we have extensive experience handling all types of real estate issues. We can handle all aspects of your real estate transaction. A major part of our practice includes real estate litigation as well. So, whatever real estate legal issues you're facing think of Alvarez & Barbara, LLP. Contact us today for a free consultation.

Continue reading "Location, location, location - Miami's Real Estate Attorneys Are Seeing a Drastic Correlation and Correction in South Florida's Real Estate Market Depending on the Location" »

There were 2,628 sales of existing, single-family homes in Miami Dade County during the second quarter. That is a 30% increase from the same period last year.

The condo market in Miami Dade County saw an even bigger jump. In the second quarter. There were 4,140 sales compared with 2,550 during the same time last year. That is an increase of 62% year over year.

Of course, a major reason for the steady increase in sales has been a steady decrease in prices. In Miami-Dade County, for instance, single-family home prices slipped 9% to $178,800 and condo prices fell 6% to $119,800.

The outlook for the rest of the year is uncertain after the United States debt downgrade that could impact mortgage rates and investor confidence. Foreclosures are also on the rise again, although they remain far below year ago levels.

Moreover, international buyers have recently been rather aggressive purchasing distressed properties here in South Florida. However, if international purchasers shy away from these discounted opportunities because of the recent economic volatility in the United States market, it could make the real estate recovery here in south Florida last that much longer.

Nonetheless, today's real estate market presents wonderful opportunities to purchase real estate. The combination of low prices and historically low interest rates makes it in a once in a lifetime buyer's market.

If you are interested in either buying, or selling, your property, please contact us today. We are prepared to assist you with your transaction and your real estate needs.

While the rest of the Southeastern real estate market is suffering, it appears that Florida is only producing good news.

According to a recent report from the Federal Reserve in Atlanta, sales of homes in Florida are outperforming the rest of the South.

Apart from this good news from the Atlanta Fed, South Florida home prices rose in May.

Although the monthly report card used tempered language, it stated that the Atlanta district reported some growth in home sales over the prior year because Florida is driving the gains in the region. Outside of Florida, sales declined.

While sales are expected to stay weak elsewhere, Florida brokers are taking a positive outlook. The Federal Reserve Atlanta District is composed of Alabama, Georgia, Florida and parts of Tennessee, Louisiana, and Mississippi.

On a more local basis, we experienced nine straight months of falling prices in South Florida. However, this past May the spring buying season boosted values.

Nevertheless, prices are still down 5.3 percent compared May 2010. Currently, home prices are back on the level they were at in the summer of 2003.

We should all be happy to hear about this positive real estate news. However, the experts say we truly won't see a recovery in the housing market until employment levels stabilize. Nevertheless, now is a good time to take advantage of current conditions and purchase real estate.

At Alvarez & Barbara LLP, we have extensive experience handling all types of real estate issues. We can handle all aspects of your real estate transaction. A major part of our practice includes real estate litigation as well. So, whatever real estate legal issues you're facing think of Alvarez & Barbara, LLP.

Continue reading "Experts are Bullish on South Florida's Real Estate Revival" »