Miami Real Estate Attorney Blog

Short Sales are Dominating South Florida’s Real Estate Market While Lenders Roll Out Incentives that could pay Homeowners up to $20,000

Short sales are dominating South Florida’s market. From April to June of this year there were 5,940 short sales in Palm Beach, Broward and Miami-Dade County. That is an increase of 15% from the first quarter.

It should also come as no surprise that these short sales are coming at a significant discount. The discount is often times at least 30% lower than non-foreclosed properties.

However, the short sale process can often times be a maddening one that takes a lot of time. Indeed, it takes on average 501 days to complete a short sale in South Florida.

It is in large part due to that delay that South Florida was not listed on Realty Trac’s top 10 markets for buying short sales.

But banks are realizing the benefit of short sales. Consequently, many banks are launching programs to pay homeowners thousands of dollars to help with moving costs if they agree to sell for less than they owe on the property.

Bank of American just launched a pilot program in Florida that could pay homeowners up to $20,000 for short selling their homes instead of letting them fall into foreclosure. Chase and Wells Fargo have also announced a similar plan.

While banks often times hand homeowners a few thousand dollars if they leave the properties in good shape after foreclosure. That plan is called “cash for keys”. Additionally, homeowners are also entitled to $3,000 of government money if they complete short sales through the Home Affordable Foreclosure Alternative (HAFA) program.

Banks are also now offering incentives above and beyond those. As such, the banks are offering money in an effort to push through short sales and avoid the lengthy and often times costly foreclosure process.
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Consider Your Options. Contact Us Today.

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.

We’re Still Far Away from a Full Housing Recovery While South Florida Exhibits the Best and Worst of Today’s Housing Market

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.
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EXTENDED BODY:
Consider Your Options. Contact Us Today.

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.
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Re-Financing Your Home Just Got Easier With the Unveiling of a New Program Intended to Help Millions of Struggling Homeowners

Relief may be coming in the form of a new government program intended to aid millions of struggling homeowners.

The new program is intended to revive the government’s Home Affordable Refinance Program (HARP) program. The HARP program was intended to help spur re-financing for many homeowners so they could take advantage of the historically low interest rates and potentially save hundreds of dollars a month.

The HARP program, however, has not worked as it was initially intended. Many stumbling blocks have prevented the program in reaching many homeowners in some of the hardest hit regions of the country. One of the biggest involved the requirement surrounding home equity.

But the new changes to HARP should hopefully change that and make it easier for millions to re-finance their mortgages.

For instance, to become eligible for the new HARP, a homeowner must have a mortgage sold to Fannie Mae or Freddie Mac on or before May 31, 2009. The homeowner must also be current in their payments and without any late payments in the past six months. Additionally, some fees were also eliminated on loans that run 20 years or less and lowered on longer term mortgages. In some cases, the homeowner will also no longer need a new appraisal on the home, which should reduce the refinance costs.

Additionally, and of significance, there is no limit on how deeply underwater someone can be as long as they re-finance into a 30 year fixed mortgage.

The new changes should not only benefit many homeowners, but should also help financial institutions become fewer homeowners will eventually default.

But one of the biggest factors that will drive the success of this new program will be interest rates. Today interest rates are hovering at historically low levels. For instance, the average rate for a 30 year mortgage today is 4.2%. If interest rates rise, however, this program may not be as attractive to many.

Navigating these waters can be difficult, but we are experienced in handling real estate matters. Many alternatives exist to struggling homeowners. At Alvarez & Barbara, LLP, we are prepared to help you with your real estate needs. Contact us today.
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EXTENDED BODY:
Consider Your Options. Contact Us Today.

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.

Legislation is being Considered that Would Remove Foreclosures from the Judiciary and bypass Judges all together

They are at it again. Our Florida legislators may attempt to tinker with the foreclosure system in the State of Florida to the detriment of all homeowners in the State of Florida. And this after such an effort failed last year.

There is no question that Florida’s courts are flooded with foreclosure filings and lawsuits. Our court system needs relief from all the filings.

As such, Florida lawmakers are flirting with plans to take foreclosures out of the judicial system. The proposed bill would allow banks to skip legal proceedings all together and have foreclosures proceed on a non-judicial basis. In other words, Florida’s judiciary would no longer have to rule on foreclosure disputes.

While taking foreclosures out of the judicial system may seem like a good idea, it is not.

This controversial piece of legislation would weaken the voices of the many distressed homeowners in Florida by depriving them of their basic due process rights to a hearing, and notice.

That is especially significant given the current climate of alleged foreclosure fraud. The issues stem from a direct result of allegations of robo signing, fraud, documentation errors, issues with process servers, problems servicing loan modifications, and other similar issues, which have prompted many lenders to slow down the foreclosure process.

But without basic due process rights to notice and a hearing many of these suspect practices may have never come to light. And many unsuspecting home owners would have lost their homes unnecessarily so as a result.

Florida has the nation’s second highest foreclosure rate, and is one of 20 states that require all foreclosures to go through the court system.

Court action isn’t needed in Michigan, Arizona, California and Nevada — other states with high foreclosure rates. On average, foreclosure proceedings in those states take from 392 days in Arizona to 511 in California.

In Florida it takes 638 days.
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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.

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.

Improper Foreclosure Practices Were Known by Fannie Mae as Far Back as 2003

Fannie Mae know about the “robo signing” allegations, as well as other problems with the foreclosure handling, as far back as 2003.

Such allegations are the subject of state attorney generals, including Florida’s, across the country, into how lenders and their law firms ignored proper procedures to handle the avalanche of the foreclosure paperwork.

According to recent news reports, an unnamed shareholder warned Fannie Mae of alleged foreclosure abuses in 2003. Fannie Mae responded by hiring a law firm to investigate the claims in 2005. The law firm reported in 2006 that it had found foreclosure attorneys in Florida were routinely filing false pleadings and affidavits.

Presumably, one of the law offices in Florida that was beset with problems was the law offices of David J. Stern. Mr. Stern recently closed his office, but left a mess in the wake of his hastily withdraw on thousands of foreclosure files.

That has included investigations and lawsuits. The investigations have revealed that many in the foreclosure pipeline have cut corners to the detriment of innocent homeowners.

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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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.

Losing Your Home Is Enough To Make You Sick

Research has revealed what many have known for some time. Losing your home is enough to make you sick.

The research reveals that economic well-being and physical well-being are indeed connected. Therefore, it should come as no surprise that the ongoing national foreclosure crisis is having a significant impact on mental health as well as on a wide range of preventable conditions that are susceptible to stress.

The research focused on four states that were hardest hit by the ongoing foreclosure crisis. One of those four states was Florida, which ranks second nationally in the number of foreclosures.

Each state was analyzed by zip code comparing foreclosure rates to reports of emergency room visits and hospital admissions for stress-related conditions from April 2005 through December 2009.

For every 100 foreclosed properties in a community, emergency room and hospital admissions went up 7.2% for hypertension and 8.1% for diabetes among those age 20 to 49.

Suicide attempts also went up significantly, as did vitals and admissions related to anxiety.

Don’t let the economy ruin your health. If you feel as though you are the brink of financial disaster, then it is imperative that you find a healthy outlet for that stress before the health problems become serious.

Additionally, if you are struggling in today’s market, you certainly have alternatives available to you that could assist you are you shaving your home or avoiding foreclosure. Help is often available to those who seek it.
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Please contact our office today if you are facing foreclosure. Our team of dedicated attorneys can help you. But don’t delay and call us today.

Mortgage Rates Fall to Record Lows

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 Aggressively Pushing More Foreclosures Nationwide and in Florida

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.

The Housing Market Continues to Pummel Home Owners and Home Equity

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.

The Home Buying Season This Year was one of the Worst on Record

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.