Miami Real Estate Attorney Blog

“Underwater” Homes Continue to Dampen South Florida’s Real Estate Market Leading to More “Strategic Defaults” and Foreclosures

The term “underwater” typically refers to the situation where a borrower owes more on their home than their home is worth. According to news reports, Florida is behind only Nevada and Arizona with the amount of homes with negative equity, or that are currently “underwater.”

Nearly half of all Florida homeowners had mortgages that were “underwater.” Specifically, more than 2 million mortgages out of 4.5 million are currently underwater. Additionally, an almost 200,000 more were near negative equity.

The high number of loans that are “underwater” is an increasingly disturbing trend in South Florida. The reason being is that may individuals with a loan that is “underwater” have decided to “strategically default” on their loan.

What is a ‘strategic default’? It is a decision by a borrower to stop making payments on a debt despite having the financial ability to make the payment. The large financial firm, Morgan Stanley, for example, recently made the calculated decision to give up five San Francisco towers it purchased at the peak of the booming real estate market.

Many individual borrowers are also turning to the same strategy used by Morgan Stanley, and others, and are seeking solutions to the problems brought in by the unstable real estate market. And the reason ‘strategic defaults’ are becoming so popular are for a number of different reasons.

For instance, many homeowners are unable to sell their homes without bringing tens of thousands of dollars to the closing table. Consequently, many of these owners just give up and walk away. This, in turn, triggers more foreclosures and, ultimately, price declines.

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.

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.
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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.

High Unemployment Continues to Plague the Housing Recovery

A recent survey shows that Americans have a negative attitude towards the housing market recovery. More than half of Americans surveyed last month said they don’t believe a recovery will occur until at least 2013. Reports about robo-signers abusing the foreclosure process has contributed to this attitude. Another survey shows that about 70 percent of renters would wait at least two years before they would buy a property.

The 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. 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 underlying problem with today’s housing market is the continued high number of inviduals that remain unemployed. If unemployment rates stay high – like those we see in South Florida – then the housing market cannot recover. While the housing market is taking small steps toward a recovery, it will not fully rebound until unemployment is lowered.

Even those who are employed now are not buying homes. This is probably due to the fear of taking on the risk of a long-term financial commitment in a climate where people feel they could be next to lose their jobs.

A survey also demonstrated that more Americans are willing to walk away from their homes if they owe more on their homes than what it is worth. This typically referred to as a strategic default. Compared to 41 percent in May, 48 percent of homeowners with a mortgage would consider a strategic default today.
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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.

Have You Been Properly Served with that Lawsuit? Contact a Miami Foreclosure Defense Lawyer Today to Determine if You Have Been Properly Served with a Foreclosure Lawsuit and to Further Assess Your Rights and Alternatives to Foreclosure

Two recent court decisions from the Third District Court of Appeal highlight the importance of proper service of process. These two decisions are also powerful rulings that could be used to aid homeowners in defending a foreclosure if they have not been properly served with the lawsuit.

Service of process is the procedure used to give legal notice to a person (such as a defendant/homeowner in a foreclosure action) of a court’s exercise of its jurisdiction over that person so as to enable that person to respond to the proceeding before the court. Typically, notice is furnished by delivering a set of court documents (called “process”) to the person to be served. Once service of process has been properly perfected, by the Plaintiff (such as a bank filing a foreclosure action against a homeowner), over the defendant (such as a homeowner), then the Court has jurisdiction to enter orders in the case. Such court orders could include the sale of the property. But the Court cannot sell the property unless service of process has been properly perfected.

In two very favorable rulings for homeowners facing foreclosure, the Third District Court of Appeal recently concluded that the bank could not sell the property at issue because the bank had failed to properly serve the defendant homeowners with the necessary legal papers to begin the foreclosure.

In the first case, Opella vs. Bayview, the Third District Court of Appeal concluded that a foreclosure judgment needed to be reversed because the lender failed to properly notify the property owner of the legal action. The Appellate Court ruled that service of process was done improperly and that the lender could not proceed with the lawsuit given that service of process was faulty. The Third District Court of Appeal also referred the matter to the Florida Bar for further investigation to determine if the Bank’s lawyers violated any rules governing the practice of law in Florida.

The second case, Bennett vs. Christiana Bank & Trust Company, also involved allegations of improper service of process. And in that case, the Third District Court of Appeal again concluded that service of process was faulty.

In Bennett, the Third District Court of Appeal concluded that leaving lawsuit documents at a homeowner’s front door is insufficient notification and in violation of Florida’s service of process laws, and voided the final judgment.

These two cases illustrate how banks, and their lawyers, are often in a rush to commence legal proceedings to foreclose on your home. In light of all the “robo signing” allegations, and on going investigation launched by Florida’s Attorney General, it should come as no surprise that banks are also often cutting corners to perfect service of process.

However, even if you believe that the legal papers, and lawsuit, were not properly provided to you, if you fail to respond within 20 days, or otherwise act in a timely manner, you will be in a default situation where your defenses may be all waived and it will be difficult for you to assert any valid defense that you may have to defend the case. And that includes the defense that you have not been properly served with process and the legal papers.

Therefore, if you have received any papers that you feel may be a lawsuit filed against you then you need to take immediate action to protect your rights. There are many alternatives to foreclosure, and often times it just takes proper planning to properly navigate against the potential pitfalls. And one of the best ways to plan is to consult with a foreclosure defense lawyer. Help is often available to those who seek it.
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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.

Many of the Problems Associated with the Handling of Foreclosures Comes to Light During Recent Congressional Hearings Investigating Foreclosures

A recent House Subcommittee hearing brought together bankers and housing regulators to discuss the ongoing foreclosure crises. The one consensus that was reached was that the system needs to be corrected and fixed.

One of the main obstacles that many banks claim they encounter during both the foreclosure and loan modification process are investors who require that the foreclosures keep moving forward even though borrowers are trying to get a modified mortgage to lower their mortgage payments. Another problem involves what to do with the second loans because the holders of both the first and second loans must agree to the modification. Therefore, homeowners may not get payments lowered as dramatically if they have a second mortgage, and that could lead to re-defaults.

Another source of harsh rebuke was the Home Affordable Mortgage Program (HAMP). The results of the HAMP program to date reveals that it is not meeting its objective of preventing foreclosures. Indeed, the Federal Reserve predicts that there will be approximately 2.25 million foreclosure filings in 2011 and about 2 million more in 2012. Florida would again be among the nation’s leaders in the number of foreclosure filings, with South Florida leading way in the Sunshine state.

The current real estate market, and ongoing foreclosure crises, presents all sorts of issues that must be properly navigated. Our Miami foreclosure defense lawyers have assisted many parties 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.

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 real estate market remains unsettled in large part due to the continued foreclosure crises.
—–
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.

Lawlessness Running Rampant in Florida’s Court-run Foreclosure Process

“Robo-signing” has become a popular term in the ongoing foreclosure crises, especially in light of the investigation launched by Florida’s Attorney General is undertaking at many of the State’s foreclosure mills. Often, documents at these firms were being notarized with missing signatures and with the wrong dates.

Plenty of mortgage assignments have surfaced which indicate that these documents have been fraudulently notarized. A mortgage assignment is a document which helps prove a lender has the right to repossess a property. This documentation is of the utmost importance because many mortgages were securitized, sold, and transferred many times over before the recent mortgage crisis. Without this document, a lender will have to spend more money and time proving that it is the legitimate owner of a mortgage.

If you feel as though you have been victimized by fraud, don’t despair. Our lawyers will carefully evaluate the facts and legal issues in your case. If we believe that you are a fraud victim, we will aggressively represent you in your case while fighting for your rights and seeking justice in the legal system. If you are a victim of fraud, we will use our legal experience to stand up for your rights. We want to help you keep your home.

One of the foreclosure mills which is currently being investigated is the Law Offices of David J. Stern, P.A. Stern claims that the errors in these documents are isolated incidents and simply mistakes.

The Herald-Tribune, however, took a look at some of these documents which are public record in Sarasota and Manatee Counties. Their investigation seems to indicate that these alleged errors were purposeful and conducted in a systematic fashion.

Here is some of what they have found:

(1) At least 60 homeowners have lost property based on improper mortgage assignments;
(2) 1 in 10 mortgage assignments filed by Stern’s office in Sarasota County have mistakes that violate state law, and
(3) 1 in 3 have either legal violations or other irregularities which call into question their authenticity.

Despite these widespread examples of fraudulent documents, Courts have been slow to stop or reverse foreclosures based on questionable documents. Although this is mostly attributed to the fact that judges must maintain neutrality and allow borrowers to defend themselves, some judges have taken a stand. For instance, two judges out of Marion and Pasco Counties have dismissed cases where Stern’s firm misdated mortgage assignments. One of the judges called the filing a “fraud intentionally perpetrated upon the court” and said the lender could never try to foreclose on the homeowner again.

Unfortunately, we may be dealing with these fraudulent documents for years to come. A healthy real estate market depends on the legal transfer of property. Accordingly, there could be many title issues and someone who bought a home from a bank that used questionable paperwork might have trouble selling the property. Some experts “expect a flood of legal challenges based on inaccurate documents.” This could lead to previous homeowners suing to get their homes back.
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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.

New Rules Imposed in an Effort to Eliminate Fraud during the Loan Modification Process

Fraudsters often target those who find themselves in difficult financial situations. During the ongoing foreclosure crisis we have seen scammers take advantage of people by promising help with loan modifications. Now, the Federal Trade Commission is intervening to prevent the public from becoming victims in loan modification scams.

Loan modifications are currently a haven for fraud. If you feel as though you have been victimized by mortgage fraud, don’t despair. Our Miami mortgage fraud lawyers will carefully evaluate the facts and legal issues in your case. If we believe that you are a fraud victim, we are prepared to aggressively represent you in fighting for your rights and seeking justice in the legal system. If you are a victim of fraud, we will use our legal experience to stand up for your rights. We want to help you keep your home.

Loan modifications are currently a haven for fraud. Many fraudsters make every attempt to make themselves look completely legitimate. They will give themselves names that look like federal foreclosure intervention programs such as “Making Home Affordable” or “Home Affordable Modification”. Some scammers even go so far as to use photos of President Barack Obama or the seal of the United States in order to promote their scams.

However, effective January 1, 2011, the Federal Trade Commission (FTC) has adopted new rules to prevent homeowners from falling prey to loan modification scams. Under the new rules a loan mod agency cannot accept up-front payments. Further, they also must implement mandatory disclosure rules. For example, mod agencies will be required to make clear that they are not connected with a government agency or program. Also, they will have to disclose that you’re free to reject any offer from the lender without having to pay the agency a fee.

The FTC believes that fake modification agencies have stolen millions of dollars from homeowners who are severely delinquent or deeply underwater in the past two years. Sadly, as the federal government has broadened its efforts to establish legitimate foreclosure relief programs the amount of fraudulent schemes has risen. So far, the FTC has brought more than 30 cases against these operations. With these new rules, the FTC will have finally have a way to control the widespread advance-fee requirements.
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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.

Miami’s Housing Recovery Is Being Impacted by the Growing Number of Foreclosures and the Ever Increasing “Shadow Inventory”

“Shadow inventory” is beginning to have an effect on home prices. According to the Miami Herald, the prices of existing South Florida homes increased as the number of sales dropped in October. This drop in home sales comes amidst a slowdown in foreclosures by banks due to alleged irregularities in procedures.

It is believed that this trend is temporary now that foreclosures have resumed. Nevertheless, the slowdown could lead to an increase in the amount of homes that are “shadow inventory” and slow down a long-term recovery. The term “shadow inventory” describes homes which have already been repossessed by banks, but have yet to be listed for sale.

In Miami-Dade County, single family home sales were down 6.2 percent from September and down 4 percent from last year. The only year-over-year increase occurred in Miami-Dade’s condo market. Condo sales were up 17 percent from last year, but down 9.1 percent for the month.

In Miami-Dade County, the median price for a single family home sold in October was $199,100. This represents a 5.9 percent increase from September. For October condo sales prices rose 8.4 percent to $107,000.

The increase in prices can be attributed to the fact that banks have dramatically reduced the amount of properties they list for sale with an agent. As such, since less lower-priced homes are being sold, median prices increased.

The long-term effects of the foreclosure suspensions are not clear. Some experts envision a years-long waiting period before the local housing market returns to a normal level. Others believe the effects will be minimal.
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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 “Foreclosure King” Facing More Problems and Troubles

David J. Stern, the reputed “foreclosure king”, has resigned as President and CEO of DJSP Enterprises, Inc. His resignation comes amidst an ongoing investigation which is exploring whether accusations of false documentation in foreclosure cases his firm handled are true. Stern stated he is resigning in order to focus on the operations of his law firm.

David Stern’s office has been at the center of many accusations of foreclosure fraud in light of the ongoing “robo signing” revelations. If you feel as though you have been victimized by mortgage fraud, don’t despair. Our Miami mortgage fraud lawyers will carefully evaluate the facts and legal issues in your case. If we believe that you are a mortgage fraud victim, we will aggressively represent you in your case against the predatory mortgage lender — fighting for your rights and seeking justice in the legal system. If you are a victim of mortgage fraud by a bank or mortgage lender, we will use our legal experience in real estate and mortgage fraud to stand up for your rights. We want to help you keep your home.

DJSP Enterprises, a publicly traded company, provides support services and document handling to Stern’s firm, the Law Offices of David J. Stern, PA. Until recently, this was the largest foreclosure firm in the state. However, clients such as Fannie Mae and Freddie Mac have left Stern as he faces an investigation by the Florida attorney general.

Stern is being replaced by Stephen Bernstein, the company’s interim chairman. Effective November 19th, he is the permanent chairman, president, and CEO.

In January 2010, Stern made $58.7 million in cash and stock interest when DJSP Enterprises went public. The company once employed 1,000 thousand people, but the company has announced more than 500 layoffs this year.

The problems don’t stop there. DJSP Enterprises reported it had defaulted on a line of credit with Bank of America. The stock’s value has plummeted throughout the year. The stock’s 52 week high was $13.65 and its low was 33 cents. As of Tuesday evening, the shares were trading at 41 cents.

While Stern states he is resigning in order to focus on his law firm his resignation is most likely a result of the recent problems which have led to the State attorney general’s investigation. Nevertheless, Stern will have all his time to solely devote to his law practice. Its certainly possible that the alleged frauds and oversights may have occurred because he may have been stretched too thin between DJSP and the law firm.
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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 Ranks No. 1 Nationally in Mortgage Fraud

Recent figures reveal that Florida ranks first in the nation as it relates to those whose mortgages are seriously delinquent. But that is not the only dubious distinction where Florida tops the nation. Now, reports indicate that Florida can also claim first place in the number of mortgage frauds.

If you feel as though you have been victimized by mortgage fraud, don’t despair. Our Miami mortgage fraud lawyers will carefully evaluate the facts and legal issues in your case. If we believe that you are a mortgage fraud victim, we will aggressively represent you in your case against the predatory mortgage lender — fighting for your rights and seeking justice in the legal system. If you are a victim of mortgage fraud by a bank or mortgage lender, we will use our legal experience in real estate and mortgage fraud to stand up for your rights. We want to help you keep your home.

According to MortgageDaily.com, which tracks criminal and civil cases across the country, Florida has the highest third quarter score on its Mortgage Fraud Index. The website gave Florida a fraud index score of 143. This easily surpassed numbers two and three on the list. Coming in second place is California with a score of 100. New York is in third place with a score of 70. In terms of real dollars, there were $110 million in mortgage fraud accusations levied in Florida.

Many of the mortgage fraud busts have happened in South Florida, and specifically in Miami. Some of these busts were frauds which were perpetrated with false loan applications and in other cases involving straw buyers. In some of these cases both mortgage brokers and title agents were picked up in these busts, and many attorneys have even lost their ability to practice law in Florida as a result of the rampant fraud.
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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 Leads the Country in the Number of Homeowners who are Delinquent in their Mortgages

According to the latest figures, Florida still leads the nation in the percentage of homeowners who are seriously delinquent on their loans.

Down from 20.13 percent, 19.52% of borrowers were either 90 days past due or in foreclosure in the third quarter. When adding in borrowers who are 30 and 60 days late, one quarter of Floridians are behind on their home loans.

Unfortunately, Florida holds the number one spot with a sizeable margin. In Nevada, the state with the second greatest amount of homeowners who are seriously delinquent, the rate stands at 17.83%. Illinois ranks third with a 10.77% of homeowners that are seriously delinquent.

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.

For instance, the economic recovery that is currently taking place is largely a jobless one. In fact, since 2007, when the recession began, South Florida’s workforce has only recovered to about 90% of where it was before the recession began. Since South Florida’s economy was so dependent on the housing market, it will likely take some time for South Florida’s economy to recover given the ongoing real estate crisis that is impacting all of us on a daily basis here in South Florida.

Additionally, another potential problem for our local economy, an economy that is still very dependent on real estate development, is that many lenders are increasingly reluctant to make new construction loans to developers. Now that certain tax credits have expired, coupled with the increasingly sluggish real estate market, builders continue to see stormy days ahead. Indeed, increasingly high unemployment rates, coupled with stringent mortgage lending guidelines, are keeping many prospective purchasers on the sidelines.

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.