Miami Real Estate Attorney Blog

State Legislators Consider Laws that Will Impact Florida’s Real Estate Market

In order to deal with the various problems plaguing Florida’s real estate market State lawmakers are trying to tackle these issues in this year’s legislative session. Florida’s housing woes are very well known throughout the nation. This crisis has created issues with condo associations and affordable housing.

Here are some of the changes our lawmakers are considering:

Associations

In the last legislative session, the Florida legislature passed a law that allows condo associations to collect rent directly from the tenants of delinquent owners. It also allows associations to ban delinquent owners from using the common elements of a condominium such as a pool or gym.

However, associations are still in distress because paying unit owners must subsidize and carry the burden for those who are delinquent. As a result, legislators are considering a bill that would allow associations to cut off amenities such as cable and water that are paid for using association fees.

Would such a law help distressed condo associations? Its certainly possible, but a definite way to help condo associations would be to speed up the foreclosure process. Banks have been accused of delaying foreclosures on condos. They do this waiting for associations to foreclose on liens so that associations are stuck footing the bill for past-due association fees.

Foreclosures and Affordable Housing

The federal government is considering scrapping a handful of its foreclosure prevention programs, so some legislators feel that Florida needs to step up to the plate to address the side effects of the widespread foreclosures. One of these side effects is the shortage of affordable housing. Accordingly, the State is considering pumping money into vacant and abandoned homes and rental apartments rather than on new construction.

However, the most controversial of the foreclosure-related bills is a proposal which would give banks and lenders the option of conducting commercial foreclosures outside of court rooms. While this bill would certainly free up dockets for residential foreclosures, there should be a concern that due process provided by courtroom foreclosures is still guaranteed in extra-judicial foreclosures.

This same bill was proposed last year, and rejected by our law makers.

The proposed bill would allow banks to skip legal proceedings all together unless the homeowner requested that the foreclosure go through the legal system. Such a bill would only further the struggles many homeowners are experiencing by significantly shortening the foreclosure process thereby making it more difficult to save the home.

Of significance, the proposed bill would allow homeowners to go to court, and avoid the non-judicial foreclosure process, only if they make a request within the first 20 days of the foreclosure process. That particular provision is indicative of the importance of immediately contacting our office upon receipt of any foreclosure related papers so as to best assess what options you may have to defend the foreclosure.

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.

Home Ownership is Still a Dream to Many Despite all of the Problems Associated with Today’s Real Estate Market

The dream of homeownership is still alive and well, albeit beat up a little bit. And, according to a recent survey, it will likely be individuals aged 18 to 34 who will play a key role in helping to stabilize our housing market.

Fueling the enthusiasm being felt by so many aged 18 to 34 is the growing number of very affordable homes in the market coupled low interest rates. However, increasing mortgage rates also might help drive those who have been sitting on the fence into the market.

However, the housing bust hangover continues to linger over South Florida. Cumulative home prices are expected to decline between 6 to 8% for the next 7 to 8 months and perhaps bottoming out towards the end of 2011.

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.

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.

Oversupply of Florida Homes Will Keep Home Prices Low as 1.6 Million Homes in Florida are Vacant

The Census Bureau revealed that 1.6 million homes in Florida are currently vacant. That’s a rise of more than 63% over the past 10 years.

This large amount of inventory will no doubt continue to keep home prices down. The high number of vacant homes will also continue to make the housing recovery a slow one, especially with banks not being very aggressive in placing many of the properties they own on the market. The so called “shadow inventory” coupled with the large amount of vacant homes in Florida, and historically low interest rates, is making it a very good time for buyers to buy a home.

The high number of vacant homes should come as no surprise to anyone who has followed real estate trends here in Florida. Florida, and especially South Florida, was among the hottest real estate markets in the nation during the hey day of the real estate boom.

What does all of is mean? Its tough to tell. The drop in values means the housing market recession is not over. It also means that it would be imprudent to expect another month in which the foreclosure rates drop. After the banks finish reviewing their practices, we may begin to see a surge in foreclosure rates. Also, these reviews may continue for the foreseeable future. This is certainly true in light of the fact that very recently HSBC indefinitely suspended foreclosures to conduct a review of their practices.

On the other hand, it also means that buyers have many wonderful investment opportunities available to them. Indeed, buyers continue to find bargains by purchasing foreclosed homes in record numbers. Given the historically low interest rates, coupled with the low prices for many properties, especially foreclosed properties, the timing may never be better to purchase a new a property. Our firm can certainly assist you in your real estate needs should you be interested in purchasing property.

We are certainly in difficult times. Not only can a foreclosure be daunting, it can break an individual’s spirit. However, there are solutions, and alternatives, to foreclosures. At Alvarez & Barbara, we understand all of our client’s individual needs and pride ourselves in providing high quality service. If you’re facing a foreclosure, don’t let it bring you down. Call us today so we can show you that the saying “every problem has a solution” is an undeniable truth.

Florida Foreclosure Filings are Down While Real Estate Prices Continue to Decrease

According to the latest reports, both home values and foreclosure filings are down. While many think that a drop in foreclosures is a sign that economic times are improving, the figures are a bit misleading.

The decline in foreclosures seen in Florida and throughout the nation most likely has to do with the allegations concerning robo-signing and document fraud. Late last year many banks suspended their foreclosures after allegations of robo signing, fraud, documentation errors, issues with process servers, problems servicing loan modifications, and other similar issues, prompted many lenders to slow down the foreclosure process which in turn has slowed down the housing recovery.

Because of these allegations, many lenders are carefully reviewing their procedures and inspecting documents. Other factors that led to the drop include the short month of February and bad weather.

In Miami-Dade County, filings were down 8 percent from January and 66 percent from February 2010. As for home prices in South Florida, they fell 14.5 percent since January of last year. National figures show that home values fell 7.3 percent.

Experts believe that depreciation rates will begin to stabilize and foresee a reduction in the depreciation rates in the spring numbers ahead of an eventual bottom nationally later this year.

Buyers Continue to Find Bargains by Purchasing Foreclosed Homes in Record Numbers

There are some wonderful opportunities for many buyers looking to enter South Florida’s real estate market. Part of the reason for that is because of the continued increase inventory involving foreclosed properties.

That is particularly true when you consider that the gap between the average sale price of a foreclosed home and that of other properties grew wider in 2010, giving home buyers that snapped up foreclosed properties significant discounts.

And that trend should continue because the amount of homes that were foreclosed on last year far outpaced the amount of foreclosed homes that were sold. Buyers who purchased a foreclosed home in 2010, on average, received a 28% discount as compared to those homes that were purchased that were not involved in a foreclosure.

Moreover, foreclosed homes made up approximately one quarter of all homes sold last year. Traditionally, foreclosures account for less than 10% of all home sales.

It should also be noted that many lenders increased the amount of homes that they repossessed last year. Indeed, Banks took back more than 1 million homes last year. This increase in the so-called shadow inventory of foreclosed homes have yet to hit the market.

However, many banks are very reluctant to put too many foreclosed homes on the market at once, because they would face booking sizable losses on the sales. Generally speaking, about 30% of bank foreclosed inventory is on the market.

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.

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.

Oasis Alliance to Run Miami-Dade County’s Foreclosure Mediation Program

For the past two years the Collins Center has been handling all foreclosure mediations in Miami-Dade County. However, it is now being replaced by the Oasis Alliance Corporation, a not-for-profit based out of Tampa.

Oasis Alliance will begin the take over on March 28. Before venturing into South Florida, Oasis has been handling foreclosure mediations in Hernando, Citrus and Lake Counties. In these three counties there are about 15,000 open foreclosure cases. There are 70,000 in Miami-Dade County.

Is the Oasis Alliance ready? Considering that Oasis has handled a small amount of cases compared to what they are about deal with in Miami-Dade, there is certainly some concern that they may not be ready to handle the increased case load. In addition to the case load, Miami-Dade County presents difficulties because of its diversity.

During the Collins Center tenure, only 5.6 percent of distressed homeowners eligible for mediation reached a resolution with their lenders. The biggest problem the Collins Center faced was getting people to actually attend mediation. Of those who did attend, 32 percent of those cases were resolved in mediation.

These figure show that if the distressed homeowners actually show up to mediation, there is a good chance that an out-of-court resolution is certainly possible. It is incumbent upon the Oasis Alliance to reach out and make a concerted effort to convince more homeowners to attend mediation.

At Alvarez & Barbara, we understand the importance of attending mediation and stress upon our clients that they must attend mediation. Not only are we familiar with foreclosure mediations, we have experience as mediators. We have been able to achieve favorable resolutions for our clients at mediation, and that includes finding suitable alternatives to foreclosure.
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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.

HSBC has Indefinitely Suspended Foreclosures

The robo-signing fiasco continues. Late last year many banks suspended their foreclosures after allegations of robo signing, fraud, documentation errors, issues with process servers, problems servicing loan modifications, and other similar issues, prompted many lenders to slow down the foreclosure process which in turn has slowed down the housing recovery.

After suspending foreclosures, the banks and their attorneys reviewed their policies and procedures to ensure that any fraud was put to a stop. Most banks have resumed their foreclosures, but HSBC is the latest bank to suspend its foreclosures.

The Palm Beach Post is reporting that HSBC has indefinitely suspended foreclosures because of problems with how the cases are being handled. The suspension came in response to federal inquiries regarding its foreclosures and “certain deficiencies” in how HSBC processed, prepared and signed affidavits along with other documents supporting foreclosure actions. The bank is also evaluating the law firms handling their cases.

In a report released by HSBC, the bank stated it is reviewing foreclosures where judgment has not yet been entered. The bank states it will correct deficient documentation and re-file affidavits where necessary.

While unfortunate that HSBC needed to be scrutinized by the federal government before suspending foreclosures, they should be applauded for taking the necessary steps to prevent fraud and correct already fraudulently filed documents. On the downside, this suspension may have the effect of creating the illusion of less foreclosures. It will also assuredly slow down our economic recovery. However, ensuring that the bank is properly repossessing properties should be the most important concern.

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.

Florida’s Investigation on Foreclosure Frauds Widens to Include another Foreclosure Mill

We recently discussed how Marc Ben-Ezra of the foreclosure mill Ben-Ezra & Katz was found in contempt of court for failing to appear in front of a judge in Miami-Dade County after being ordered to do so. Now, it has become the eighth foreclosure mill to be investigated by the Florida Attorney General.

The Florida Bar is also conducting an investigation into Ben-Ezra and his law partner, Marvin Katz. Although the Bar wouldn’t state how long they have been investigating the two, they are being investigated on one complaint each involving foreclosure fraud.

Florida’s Attorney General’s Office states that Ben-Ezra and Katz’ firm fabricated or misleading documents were presented in court before judges. Some of these documents include assignment of mortgages and affidavits which have been later proven to be legally insufficient. It is also accusing the firm of violating Florida’s deceptive and unfair trade practices laws.

The firms that are currently being investigated by the Attorney General claim that the office does not have the authority to investigate or regulate lawyers. They argue that only the Florida Bar has the ability to regulate the profession. A Palm Beach County judge has already agreed with the foreclosure mill Shapiro & Fishman that only the Florida Bar can regulate lawyers.

No matter who has the power to regulate attorneys, the fact remains that serious issues have arisen as a result of alleged wrongdoing by all of these firms. As attorneys, we are held to a higher standard of conduct, and rightfully so.

Although the State of Florida is conducting these investigations, wrongdoing by lenders’ attorney will almost assuredly continue. Unfortunately, its not safe to assume the foreclosure mills have corrected their ways. At Alvarez & Barbara, whenever a foreclosure complaint comes into our office, we not only examine it for legal sufficiency, but for any evidence of fraud.

This evidence of fraud is not easy to find and is only visible to an experienced attorney. We have that experience. Not only do we defend our clients in foreclosure, but our primary goal is to find a solution that is tailored to our clients individual needs by exploring the many alternatives that may exist.
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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.

Deposit Recovery Cases Continue to Linger for the Related Group and other Prominent Developers in South Florida

Our firm has a proven track record in the area of deposit recovery. While we are currently aggressively representing the interests of many purchasers at the St. Regis Bal Harbour, ICON Brickll, the IVY, and other prominent South Florida projects, recover their pre-construction deposits, we previously spearheaded many of the defenses that the developers are currently using against purchasers.

The Related Group, developer of ICON Brickell and led by Jorge Perez, spearheaded the condo construction boom in Miami. Although the real estate market tanked almost 4 years, the Related Group is still dealing with many lawsuits stemming from the real estate market crash.

In Downtown Miami alone, the company constructed 5,500 condo units. By early 2008, the company faced hundreds of lawsuits filed by buyers, employees, vendors and subcontractors.

The Related Group has settled a great amount of the lawsuits filed by buyers trying to cancel contracts. Attorneys who represented these buyers, including our firm, have stated settlements were not easy to come by because the company slowly responded to lawsuits.

The ICON Brickell, a condo development built by the Related Group, has presented many legal problems. Apart from lawsuits filed by buyers, half of the condos in the 1,800 unit development were given back to the bank who financed the project.

Our firm has considerable experience in deposit recovery cases. The very fact that we previously represented developers places us in a unique position to anticipate and understand our opponents’ next move. In fact, many of the tactics developers will use to defend a case were established by our firm.

If you find yourself fighting with a developer to recover your deposit, call our firm as we may be able to assist you. The Developers have attorneys fighting for their interests, and so should you.

Florida Ranks 2nd in the Nation for Mortgage Delinquencies

Both Nevada and Florida continue to lead the nation in mortgage delinquencies. According to recent news reports, Florida’s mortgage delinquency rate is at 14.5% and is only surpassed by Nevada at 14.76%. The delinquency rate is often seen as a precursor to foreclosure. And both Florida and Nevada are among the nation’s leaders in foreclosure filings.

Indeed, 21,671 Florida properties fell into foreclosure in January. The reason that number is down is because of the impact from the recent robo-signing allegations, and other issues related to foreclosures in Florida.

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.