Miami Real Estate Attorney Blog

Icon Brickell Turn-around

What once symbolized the glut of condos in Miami now symbolizes the condo turn-around. The Icon Brickell condo faced major problems as speculators walked out on sales contacts, sat half-empty, and faced foreclosure.

However, the condo complex represents some of the things that are going right in this horrific housing market today.

The complex, composed of three towers, had two towers seized by a group of banks. That was one year ago, but since then 930 units have been sold. This means that a building that was 3/4 empty is now 3/4 sold. The third tower, which was not seized by lenders, has sold 518 of its 520 units.

The banks retained the services of Fortune International Realty to market the project and they have spearheaded the turnaround with their marketing efforts. According to the head of Fortune, the banks expected it to take three years for the building to sell out. However, its expected that they will sell out in 18 months. Fortune believes that the remaining 250 units will be sold by year’s end.

Across the board we see price-slashing in the current market and this is what has helped Icon emerge from failure. For example, pre-construction sales had prices at about $600 per square foot. Presently, they are at about $440 per square foot.

With condo sales up 94 percent in April as compared to April 2010 and prices being cut, it certainly seems that amid this recession, the Miami condo market is a bright spot. Potential buyers need to take advantage of the current market conditions.

If you are a contract purchaser in a development that has not been completed, or you are seeking the return of your deposit, then please contact our office today.

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

About the Author – Gabriel de las Salas is an attorney with the law firm of Alvarez & Barbara, LLP. His practice is focused on general civil and commercial litigation, including personal injury, insurance claims and real estate disputes. Mr. de las Salas received his B.A., cum laude, from the University of Florida, and his J.D., from Stetson University College of Law.
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Bimini Bay Presents Great Real Estate Opportunities for Those Seeking to Purchase Property

We are still fairly deep in the housing market crash and it seems that it won’t be ending anytime soon. All the news we hear these days deals with prices dropping lower, foreclosures continuing, homes underwater, and the continued high unemployment rate. It seems like chaos out there, but in chaos lies opportunity.

So where’s the opportunity in all of this? Well, right now is a great time to buy a home or condominium. With sale prices continuing to drop, potential buyers need to take advantage of the current market condition.

This drop in prices seems like its going to continue for some time. This trend is likely to continue because of the amount of homes that are a part of shadow inventory, which are homes that are in the early phases of the foreclosure process or have already been repossessed, but have yet to placed for resale.

If you’re looking into purchasing a home or condo, don’t just look here in South Florida.

A great place to look right now is at the Bimini Bay Resort and Marina. Located in the Bahamas and just a short boat trip from Miami, it was recently recognized by the Miami New Times as the Best Day Trip in Miami for its 2011 Best of Miami issue. Paradise is just a day trip away!

If you are interested in purchasing property in Bimini Bay, please contact our office today as we could assist you in this transaction.

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 issue you’re facing think of Alvarez & Barbara, LLP.
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About the Author – Gabriel de las Salas is an attorney with the law firm of Alvarez & Barbara, LLP. His practice is focused on general civil and commercial litigation, including personal injury, insurance claims and real estate disputes. Mr. de las Salas received his B.A., cum laude, from the University of Florida, and his J.D., from Stetson University College of Law.

Bank of America Pays Legal Fees to Homeowner in Failed Foreclosure

In what seems like a reversal of roles, a homeowner showed up at a Bank of America with a truck ready to haul away furniture for public action in order to enforce a court order.

Back in 2009, the homeowner and his wife purchased a home in the Fort Myers area without taking out a mortgage – they purchased it cash. However, about 5 months ago, Bank of America started foreclosure proceedings against them for non-payment of their mortgage. Well, of course they weren’t paying! They had no mortgage at all!

The bank did eventually drop the case. Nonetheless, it cost the homeowner about $2,500 in legal fees to defend the case. Luckily, a judge ordered the bank to reimburse him for his legal expenses. But for some unknown reason the bank never paid up. That is why the homeowner had to show and attempt to repossess property. After being there for one hour with deputies and moving trucks, the bank handed the homeowner a check.

Whenever a lender dismisses a case, or even if a judge does so, you may be entitled to recovery attorney’s fees from the bank that tried to foreclose on your home. More often than not, the mortgage and note will contain language that says the prevailing party is entitled to recover fees. If a judge dismisses a foreclosure case, the homeowner is the obvious prevailing party. Therefore, recovery of attorney’s fees may be possible if a judge orders it.

Indeed, our firm has recovered thousands of dollars in legal fees from the banks in foreclosures actions where we have prevailed.

At Alvarez & Barbara, LLP, we have extensive experience defending foreclosure cases. Not only have we worked to get cases dismissed, we’ve been able to recover attorney’s fees for our clients as well. If you’re in default or are already facing a foreclosure lawsuit, don’t hesitate to contact us for a consultation.
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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.

Real Estate Sales Increase in 13 U.S. Cities

For the first time in eight months, home prices are rising in most major US cities. The boost can be attributed to the annual wave of spring purchases.

Unfortunately, Miami is not included in this list. As a matter of fact, prices in South Florida have reached their lowest level in four years.

Thirteen of the twenty cities tracked by the Standard & Poor’s/Case-Shiller home-price index saw prices rise. Washington, D.C. saw the sharpest increase in prices. Even though the index covers 20 major US cities, it provides a good idea of what is going on nationally because these 20 metro areas compose about 50 percent of American households.

Right now, it’s too early to say if the price increase is due to a market turnaround or simply the warmer weather. Nevertheless, when adjusting the figures to take into account the seasonal factors, prices rose in most markets that experienced decreasing sales.

The best sign of an improving market would be to see prices to continue rising over the next few months. But let’s not get too hopeful. Its expected that about another 2 million foreclosures could hit the market over the next 2 years. As we’ve discussed, many foreclosures have been delayed due to a review of the foreclosure process by banks and state and federal regulators.

Although we’re hearing some good news, today’s current real estate market, and ongoing foreclosure crises presents 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.
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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.

Foreclosure Slowdown Continues in Miami and South Florida

Miami continues to lead the three counties in South Florida in foreclosures. In May, Miami had 1913 foreclosures, with Fort Lauderdale logging 955 and West Palm Beach reporting 747 new foreclosures.

But if there is some good news in those numbers it is that those numbers are way down when compared to the same period last year. Foreclosure activity has slowed down in the recent months. The slow down is a direct result of 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.

On the other hand, and in May, South Florida’s three counties combined to produce more than 6600 foreclosures. Miami Dade county had 2768 new foreclosures, a drop of more than 60%, year-over-year, while Broward county had 1872 new foreclosures and Palm Beach county had 2006. Moreover, the inventory of properties in foreclosure has also declined during the past six months.

But foreclosure processing delays continue to mask the true face of the foreclosure situation. Nationally, foreclosure activity declined, with foreclosure filings i.e. default notices, scheduled auctions, and bank repossessions, reported a 2% decrease from April and a 33% decrease from May of 2010.

Reports also show that one in every 605 household nationally received a foreclosure filing during the month of May.

And despite a 62% decrease from May of 2010, a total of 19,192 Florida properties received a foreclosure filing in May, the second-highest a total nationally.
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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.

The Manner in which Foreclosures are Handled in Miami Dade County is About to Change

In 2010 state legislators awarded Miami Dade County close to $1 million in an effort to help eliminate the backlog of foreclosures. The objective was to have as many foreclosures in and out of the judiciary within a year.

That funding has now ended. And as of today, Miami Dade County have more than 58,000 foreclosure case is pending.

Foreclosure activity has slowed down in the recent months. The slow down is a direct result of 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. Florida’s Attorney General eventually announced an investigation into these alleged practices.

Nonetheless, our housing recovery cannot fully get underway until the back log of foreclosure, and the so called shadow inventory, are all disposed of. Many are estimating that with so many foreclosures still looming, that the housing market will not fully recovery for at least another 24 months.

Starting July 1st, Miami Dade County foreclosures courts are set to undergo significant transformation when last year’s emergency funds dry up and the overburdened judicial system is forced to function with less money. They proposed changes that are coming to Miami Dade county were recently outlined by the courts Chief Judge at a recent town hall meeting in the courthouse.

Given the expiration of the emergency funds that were given last year, and effective July 1, Miami-Dade will now handle foreclosures in the following manner:

• Judges will be pulled from other divisions that will hear foreclosures that are more than two years old, and these judges will be replacing the retired judges that were hired last year to specifically handle the foreclosure file.

• Law School volunteers will be in charge of screening case files, replacing the paid screeners that were funded by the one time grant.

• Hearing notices will be sent via e-mail. The paper system will be replaced with an electronic system that will hopefully save the judiciary time and money.

• Possibly most significantly, lawyers for the banks will now only have one opportunity at a summary judgment hearing. If the summary judgment is denied, or if the paperwork as incomplete for whatever reason, then the case will proceed to trial. There will be no second bite at the apple with respect summary judgment hearings.
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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.

Bank Sued for Mortgage Fraud

The federal government has sued Deutsche Bank for alleged widespread fraud that resulted in millions of dollars paid to the bank. According to the lawsuit, and as a direct result of the purported fraud, the bank padded its pockets with undeserved income as it repeatedly lied to benefit from a government program that insured mortgages.

The lawsuit is seeking to recover hundreds of millions of dollars the federal government had to pay in insurance proceeds when many borrowers defaulted on their mortgages. The lawsuit alleges that the bank repeatedly and brazenly engaged in a pattern of reckless lending for mortgages that were really ticking time bombs, sometimes failing to even verify that the applicant had a job.

This lawsuit is the direct result of the ongoing investigation of federal regulators and Attorney General’s in all 50 states. They have been investigating lenders accused of cutting corners and using forged documents to foreclose on many homeowners. In some cases, employees of financial institutions engaged in so-called robo signing.

Moreover, 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. Florida’s Attorney General eventually announced an investigation into these alleged practices.

The lawsuit is specifically seeking to recover more than $386 million at the Department of Housing and Urban Development has paid out in insurance claims and related cost. HUD sets the rules for the FHA mortgage insurance program, including requirements relating to the adequacy of the borrowers income to meet the mortgage payment requirements, the borrower’s credit worthiness and the appropriateness of the valuation of the property being purchased.

In this instance, the federal government is alleging that the bank failed to comply with those requirements. Moreover, the federal government is also alleging that the bank just flat out lied when asked instead requirements were actually being complied with. Indeed, the quality control violations were egregious, and that includes the bank’s failure to review all early payment defaults and failed to implement minimal quality control processes. The lawsuit further alleges that the bank actually hired an outside vendor for purposes of reviewing its loan process, but failed to adherence to any of the recommendations adhered to by the third-party vendor. Indeed, the lawsuit alleges that the bank received the recommendations and never even opened the letter.

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.

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.

New Study Reveals that Those Who Have Strategically Defaulted on their Mortgages See Their Credit Scores Recover Faster Than Others

Good news for those who have strategically defaulted on their mortgages and are worried about their credit. A new study is set to be released which reveals that people who default on their mortgages, and not on other debts, are not as risky as once thought. Let’s hope lenders will take this into account when looking at someone’s credit history.

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.

Transunion, one of the largest credit reporting agencies, conducted research which shows that those who only default on mortgages are less likely to default later on new car loans or credit cards than are people who have defaulted on their mortgage and some other loan at the same time.

The study also revealed that mortgage-only defaulters saw their credit scores rebound faster than people who have defaulted on multiple loans. This includes people who have filed for bankruptcy.

This research is valuable to lenders because mortgage-only defaulters are certainly going to be a major part of the market in the future. This is a result of many homeowners who have elected to make “strategic defaults”, which is when a homeowner who could afford to pay their mortgage defaults because their home’s value tanked. Another study shows that strategic defaulters have better credit histories than other mortgage defaulters. It also showed that strategic defaulters are savvy about credit.

While Real Estate Sales Have Increased, Foreclosures are Still Preventing a Full Recovery from Taking Place in South Florida

In April, new home sales rose 7.3% to a seasonally adjusted annual rate of 323,000. Experts opine that a healthy real estate market would produce a pace of about 700,000 new-home sales a month.

These days people have a little incentive to buy new homes because they are relatively expensive. Plus, we are seeing more renters in today’s real estate market as opposed to folks purchasing a new home.

Nonetheless, new-home prices are more than 30% higher than the median price of re-sales. This is twice the normal markup.

Potential home-buyers are favoring older, discounted homes because that is where the deals are. Especially in light of the large inventory of foreclosed properties.

Certainly it’s a positive sign that we are seeing a rise in new home sales. However, the fact remains we are still in a depressed housing market. As proof of this, new home builders are keeping the supply of new homes at artificially lows. The high unemployment rate, tight credit and the fear that home prices will fall even further is also preventing a full-fledged recovery.

If you’re in the market to buy a new home or condo, now is a great time to do so. With sale prices continuing to drop, potential buyers need to take advantage of the current market conditions.