Miami Real Estate Attorney Blog

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

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

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

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

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

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

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

Consider Your Options. Contact Us Today.

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

Our Miami foreclosure defense lawyers have assisted many homeowners in buying enough time to reach the solution that is right for them. There are many alternatives to foreclosure, and often times it just takes proper planning to properly navigate against the potential pitfalls. Help is often available to those who seek it.

If you are on the brink of foreclosure, need a real estate attorney, or just need to assess your legal rights, please contact our office today.

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

Several South Florida Cities See an Increase in Taxable Property Value

We recently discussed record low home prices. However, there is some good news – property values actually increased in 20 South Florida cities in 2010. This is great news for some property owners and cities who have been hard hit by less tax revenue.

In Miami-Dade, property values were still down 3.3 percent, but this is much better than 2008 and 2009. In those years there was a double digit decline in property values. The 2010 figures show that the worst days of the housing market crash may have passed. However, a full recovery still seems distant.

Downtown Miami saw the largest year-over-year increase in the area. In 2009 the tax base shrunk 11.2 percent, but 2010 brought a 10.9 percent increase. Nevertheless, the City of Miami saw a 3.8 percent decline.

So, what’s the forecast for 2011? Its too early to tell, but whatever happens next will be determined by the course of the foreclosure crisis. In South Florida, 14.4 percent of homeowners are behind on their mortgages and there are thousands more that are underwater, which means there are many more properties that are set to enter into foreclosure.

It seems these days that all we are seeing is bad news for the real estate market, so this slight bit of good news is a breath of fresh air. What will ultimately stabilize property values is the end of the foreclosure crisis. One major driver behind the decline in property values is that many properties have fallen into disrepair because they have sat vacant for long periods of time. Once a vacant property is occupied and the new owner fixes it up, we should see property values stabilize.

As foreclosures will continue because of homeowners who can’t simply afford their mortgages or those who decide to make strategic defaults, many homeowners will need representation in a foreclosure proceeding. If you are one of these homeowners, don’t hesitate to contact Alvarez & Barbara, LLP. We have successfully defended these cases for our clients by finding them solutions other than what many believe is the ultimate repossession of their property.

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

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

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

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

Today’s current real estate market, and ongoing foreclosure crises, presents all sorts of issues that must be properly navigated. There are many factors contributing to Florida’s nation leading delinquency rates. They include a weak job market, weak economic recovery, and a major drop in home prices. Consequently, Florida’s housing market remains unsettled in large part due to the continued foreclosure crises.

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Home and Condo Sales have Increased While Florida Still Leads the Nation in Foreclosure Inventory

Florida had the nation’s highest inventory of homes currently in foreclosure. As a result, sale prices are lower than normal. Given that sales prices are lower than normal, South Florida single-family homes and condos continued to move at an increasing rate compared to last year.

According to housing data released by Florida Realtors, home sales in South Florida increased 2 percent state wide in the month of April. Condos sales have been even stronger. In South Florida alone, condo sales rose 17 percent compared to April of last year.

Specifically, single-family homes in Miami, West Palm Beach, and Ft. Lauderdale increased by 40 percent, 21 percent, and 2 percent respectively from April 2010. Surprisingly, condo sales boomed in Miami, going up a “whopping” 94 percent from a year ago. In West Palm Beach, condo sales increased 30 percent from last year, while Ft. Lauderdale saw a minimal increase, but an increase nonetheless, at 8 percent.

On the other hand, about 14.4 percent of Florida homes with a mortgage were in some stage of foreclosure in the first quarter, compared with the national rate of 4.5 percent. Additionally, at least 4.6 percent of Florida mortgages were at least 90 days past due. The percentage of Florida loans that entered the foreclosure process in the first quarter was 1.8 percent, second only to Nevada’s 2.3 percent.

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.

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

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

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

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

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

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

Mortgages are Being Dumped at a Record Pace

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

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

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

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

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

Miami Foreclosure Defense Lawyers Continue to See a Steady Increase in the Number of “Underwater” Homes

According to Bloomberg news, more than 28% of all U.S. homeowners with mortgages owed more than their properties were worth in the first quarter as real estate values continued to fall.

Part of the reason for the rise in “underwater” homes is the continued steady decrease in real estate values. Home prices fell 3% in the first quarter. Moreover, many are predicting that home prices will drop as much as 9% this year as foreclosures spread and unemployment continues to remain high.

Additionally, homeowners with negative equity increased from 22% a year earlier as home prices decreased 8.2% over the past 12 months. About 27% of homes with mortgages were “underwater.”

New Regulations Passed with a Stated Goal of Attempting to Prevent Further Foreclosure Fraud

In response to allegations of robo signing, fraud, documentation errors, issues with process servers, problems servicing loan modifications, and other similar issues, the Federal government has passed new regulations to curb further wrongdoing. Regulators say the changes represent major reforms that affect nearly every American homeowner with a mortgage.

The federal government forced banks and mortgage servicers to hire outside firms to review their foreclosure policies and procedures. Many banks were falsifying foreclosure documents, improperly notarized affidavits and told homeowners they had to be in default in order to qualify for a modification. Also, many law firms representing lenders helped their clients commit fraudulent acts.

As a result of the regulations, servicers agreed to do the following: (1) provide homeowners with a single point of contact when dealing with the servicer, (2) increase supervision of law firms handling their work, (3) create a remediation process for homeowners who believe they have been treated unfairly, and (4) not to foreclose on modified loans that are not delinquent.

Many consumer groups feel that the regulations have no bite and are calling for further reforms. For example, the latest regulations still allow lenders to start the foreclosure process while a homeowner is attempting to modify their mortgage.

Even though many believe these new reforms are too weak each state’s attorney general is pursuing tougher regulations. In light of the widespread fraud, more needs to be done to protect American homeowners. Let’s hope that the states are able to pass regulations that directly address the wrongdoings and severely punish those that take advantage of Americans who are simply having a tough time making ends meet in this tough economy.

Even though regulations are forthcoming they may still not provide sufficient safeguards. However, an experienced foreclosure attorney can provide that safeguard. If you are facing foreclosure, don’t hesitate to contact Alvarez & Barbara, LLP so we can safeguard your rights and ensure your lender is playing by the rules.

The “Foreclosure King” Leaves a Mess Behind after he Abruptly Closed his Law Practice with over 100,00 Foreclosures Pending

Even though the foreclosure king, David J. Stern, has shut down his offices, Florida is still feeling the effects of his alleged wrongdoings. Because Stern shut down his office, yet didn’t formally withdraw as the attorney on all of his files, about 100,000 cases are basically stuck in the system.

Now, Stern is being compared to owners who walked away from their properties because they were no longer profitable and without worrying how it affects those around them. Judges are quite upset because of his informal withdrawal from cases.

In Florida, an attorney who represents a party in a lawsuit must request leave from the court in order to formally withdraw. Without a court order approving the withdrawal, an attorney stays on the record as counsel for that party. In other words, while facing allegations of fraud, Stern is basically disrespecting the judicial system once again.

Stern’s actions are only going to further delay the housing recovery. Because the banks are moving to dismiss many of Stern’s former cases, it could take months, possibly years, before a bank decides to re-file suit. All the while, empty homes will remain vacant, condo associations will have to continue taking losses due to delinquent units, and many will continue to live rent-free for much longer.

At Alvarez & Barbara, LLP, we’ve had to deal with cases where Stern has informally “withdrawn”. It’s not easy. It makes representing your client extremely difficult because it’s impossible to speak to an attorney who is prosecuting the foreclosure. However, we’ve developed strategies to get things moving if that is in our client’s best interests.

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.

Miami’s Real Estate Market Continues to Attract Many Buyers as Prices are Still at Historic Lows

In Miami home sales are up, but across America sales are down. According to the latest reports, less Americans purchased previously occupied homes in February. Those who did purchase these homes bought them at extreme discounts. Because of the weak sales and continuous rise in foreclosures, home prices have reached their lowest level in nine years.

However, these sad numbers are not true across the country. For example, although prices have dropped 18.6% since last year, sales have jumped 46.4% during the same time period.

As these figures show, we are still deep in the housing recession. The biggest hurdle to a recovery is the massive amount of unsold homes on the market. Experts believe that at the current pace of home sales, it would take about 9 months to sell all the homes which are currently on the market. However, this doesn’t take into account the fact more and more homes are entering the market on a regular basis.

But even these figures do not fairly represent the market because of shadow inventory – homes that are in the early phases of the foreclosure process, but have yet to be placed for resale. Also, the suspension of many foreclosures due to the robo-signing scandal is slowing down foreclosures which slows down repossessed homes from being placed on the market.

In addition to the foreclosures, sales are bogged down by lenders who are currently less willing to provide mortgage loans. Buyers are also deterred from buying homes because of high unemployment rates, job insecurity, and worries that home prices will continue to drop.

Consider Your Options. Contact Us Today.

Even in a good market, real estate can be intimidating. With the current state of the market, real estate is even more intimidating. Its often the best decision to hire experienced counsel to help you navigate the intricacies of the real estate market. Whether you’re making a purchase, facing foreclosure, or trying to recover your deposit from a condo purchase, Alvarez & Barbara, LLP has the experienced know-how to tackle all of your real estate needs.

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