Miami Real Estate Attorney Blog

The Ongoing Foreclosure Crisis is Impacting the Pool of Applicants Applying for Mortgages Today and Making it Harder for Many to Qualify for Mortgages in Miami

The mortgage crisis has thrown an enormous amount of homes on the market. The supply of homes certainly surpasses the demand at the moment. As a result, home prices continue to drop throughout South Florida even though some areas are experiencing a rise in the sale of existing homes and condos. In this depressed market, interests rates are low. However, few Americans are able to take advantage of these historically low interest rates.

The ongoing foreclosure crisis has made lenders behave more conservatively. Consequently, people are finding it difficult to qualify for a mortgage. Even those with relatively good credit scores are having a hard time qualifying for a mortgage.

According to news reports, an analysis of more than 25,000 loan quotes and purchase quotes shows that about one-third of Americans are unlikely to qualify for a mortgage because of their credit scores.

For example, someone with a credit score below 620 who requested quotes on a 30-year, fixed-rate mortgage were unlikely to receive even one quote, even if they were able to make a down payment of 15 percent to 20 percent. On the other hand, mortgage borrowers with excellent credit scores (720 or higher) were able to get the lowest interest rates, which was usually around 4.3 percent for a 30-year, fixed rate mortgage.

On the bright side, borrowers with credit scores between 620 to 719 can save a substantial amount in interest by improving their credit scores. For each 20-point credit score increase, the average low APR drops 0.12 percent. Over time this may represent a good amount of savings. For instance, on a $300,000 home with a 20 percent down payment, this decline equates to a savings of $6,400 over the life of a 30-year loan.

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.

Florida Foreclosures Being Pushed Through by a Crowded Court System Lead to Errors and Problems in Miami and Statewide

The New York Times recently published an article on how the State of Florida is dealing with the record amount of foreclosure actions. More importantly though, the article points a few reasons why its important to hire an experienced foreclosure defense attorney when facing a foreclosure.

Florida set aside nearly $10 million to organize foreclosure-only courts across the state. These courts are run by retired judges. While these courts have certainly helped speed up the foreclosure process and freed up dockets for other types of civil cases, foreclosure defense lawyers have expressed some concerns about how these judges run their court rooms.

Foreclosure defense attorneys, including the attorneys at our firm, argue that many of these judges are so intent on cutting down the foreclosure caseload that they may be unfairly siding with lenders at the expense of homeowners. Many of these judges simply ignore contradictory evidence and allow lenders to foreclose on properties that they have yet to prove they own.

Another major issue with foreclosures is that its often difficult to prove who owns the note on a mortgage because of the amount of paperwork and transfers that resulted when banks sold these mortgages as if they were shares in a company. Judges are overlooking this and lender attorneys may be easily committing fraud due to how difficult it is to track ownership of some notes.

The Florida Attorney General’s Office has received many complaints regarding the alleged improper actions of lender attorneys. Some bank friendly foreclosure firms are even falsifying or improperly notarizing documents. Some are reporting incidents where papers supposedly drafted by the same person have extremely different signatures. Additionally, and as in the case involving GMAC, as reported in our blog, there are even bank representatives that are signing, and notarizing, papers in a wholly fraudulent and deceptive manner.

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.

Florida GMAC Foreclosures are Put on Hold as a Result of Potential Perjury and other Irregularities here in Miami and Statewide

GMAC mortgage will need to take corrective action in connection with many Florida foreclosures, including many filed in Miami. GMAC has suspended evictions, cash-for-keys transactions and lockouts, regardless of occupant type, effective immediately. GMAC will also suspend sales of properties on which it had already foreclosed.

The reason behind GMAC’s unusual move to halt all foreclosures in Miami, and statewide, stems from serious concerns surrounding affidavits GMAC submitted in support of its foreclosures.

It turns out that Jeffrey Stephan, a GMAC foreclosure team leader, admitted under oath that he signed tens of thousands of affidavits verifying mortgage note ownership and amounts, even though he never saw original documents in those cases. This is a violation of Florida’s Rules of Civil Procedure, bolsters the defense of many of GMAC foreclosures, and could lead to possible perjury charges. Additionally, many affidavits filed in support of GMAC foreclosures were also signed without a notary public present. This is a violation of Florida’s notary rules and laws.

These irregularities can lead to the successful defense of a foreclosure. Our firm has a proven track record in defending foreclosure cases. We have been successful in defending many foreclosure cases when given an opportunity to develop a plan to properly defend the foreclosure. The Miami lawyers at Alvarez & Barbara, LLP, are on your side. We are experienced trial attorneys who will help you understand your rights and options under Florida and federal foreclosure laws.

Prominent South Florida Foreclosure Law Firm Profits from the Foreclosure Crises Despite Allegations of Fraud

Unfortunately, many South Floridians are familiar with the name David J. Stern. Some South Floridians cringe at the sight of his name. Foreclosure attorney David J. Stern operates one of the largest law firms representing lenders and servicers throughout the foreclosure process.

While the average American has cut their expenses and boosted savings due to slower economic times, the Law Offices of David J. Stern has experienced massive growth cashing in on the housing crisis. Started in 1994, the Law Offices of David J. Stern posted $199 million in revenues in 2008 and $260.3 million in 2009.

Recently, Stern found a new way to cash in on the housing crisis. He sold the firm’s foreclosure processing arm, which makes the court documents needed in foreclosure proceedings, to a publicly traded company. The operation was sold for a total of $146 million to DJSP Enterprises which started trading on the NASDAQ in January. Stern is the chairman and CEO of this new company that has his law firm as its only client.

Although the cash may be flowing in, everything is not well for Mr. Stern. The law firm is facing an inquiry by the Florida Attorney General’s Office for allegedly falsifying documents on behalf of lenders and a RICO law suit claiming attorneys filed fraudulent pleadings.

Practitioners in the foreclosure defense bar worry that DJSP will give greater priority to profits, rather than ethics. As many critics have pointed out: This is a profession, not a fast-food joint. Lawyers have a larger responsibility not to be expedient but to do quality work, to do good for society as a whole. We cannot lose sight of that.

We have been successful in defending many foreclosure cases when given an opportunity to develop a plan to properly defend the foreclosure. The Miami lawyers at Alvarez & Barbara, LLP, are on your side. We are experienced trial attorneys who will help you understand your rights and options under Florida and federal foreclosure laws.

Consider Your Options. Contact Us.

For a free consultation with a Miami lawyer familiar with the local real estate market, contact Alvarez & Barbara, LLP, today. We represent clients in Miami, Homestead, Hialeah, Coral Gables, and throughout South Florida.

Florida Ranks 2nd in the Nation for Foreclosures While Banks Carefully Manage the Real Estate Inventory

Although Florida foreclosure activity has decreased, year-over-year, for the fifth straight month in August, the foreclosure rate in Florida still remained one of the highest in the country. Seventeen percent (17%) of all foreclosures in the United States are right here in the Sunshine State. This ranks Florida second among all the states for foreclosures.

Specifically, 1 in every 155 Florida homes were in receipt of a foreclosure filing in August. That is 2.5 times the national average. That equals to 56,877 properties receiving a foreclosure filing in August. That is up 10% from July, but down 9% for the same time last year.

Recent figures, however, demonstrates that default notices are being sent out less frequently. In August, banks sent out 46% less default notices as compared with the amount of default notices that were sent out in August of 2009. However, and as compared with July of this year, August saw an increase of 2% in default notices being sent out.

As reported in the USA Today, it is becoming apparent that the housing supply being accumulated by banks by way of repossessions after foreclosures are filed is being carefully managed on both ends by lenders and servicers. Simply stated, on the front end, delinquent loans are falling into foreclosure at a slower rate. On the back end, the backed-up inventory of properties already in foreclosure are moving to bank ownership at a steady pace. This is most like being done to prevent a further drop in home prices.

Consider Your Options. Contact Us.

Real Estate Inventory Continues to Increase as the Foreclosure and Real Estate Crises Continues to Impact the Miami Real Estate Market

According to news reports, the downturn slide in home prices may continue for another three years. Homes in default, or foreclosure, that may be offered for sale are preventing the market from bottoming out after a significant plunge in real estate values over the past few years. These properties, called shadow inventory, are in addition to homes that are vacant or that may soon be put on the market by owners.

The issue right now appears to be that there is more supply than demand. And much of this supply may actually be homes that are “underwater”, thereby necessitating the need for a short sale. Short sales are seeing a strong rebound as banks are increasingly trying to work with borrowers to approve short sales, and new federal programs are also encouraging more short sales.

Nonetheless, the continued rise in supply is a threat to all efforts attempting to boost the housing market while potential home buyers await better deals. Since more price declines are required for a legitimate rebound, it may take three years before we can actually expect a rise in home values.

It is expected that once prices bottom out, prices will increase at a rate of 1 to 3 percent per year. This means it may take more than 10 years for the market to return to its peak. Regardless, it appears as though we can look forward to the recovery, in the real estate market, to begin some time in 2014.

The Miami lawyers at Alvarez & Barbara, LLP, are on your side. We are experienced trial attorneys who will help you understand your rights and options under Florida and federal foreclosure laws. Contact our law firm today for a free consultation and case evaluation.
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Light at the End of the Tunnel – South Florida’s Foreclosure Crises May be Improving, but Foreclosures Continue to Mount

It appears that the South Florida real estate market may have entered a new phase. According to news reports, banks are repossessing foreclosed homes at a faster rate, but fewer homes are falling into delinquency.

In August, the rate of bank repossessions increased 96.7 percent compared to the same time last year. Meanwhile, foreclosure filings have dropped 52 percent. This means that additional inventory is still going up for sale, which means there is still downward pressure on prices and home values. Moreover, some areas are actually seeing prices rise for the first time in years. Specifically, the Brickell real estate market is seeing slight increases in values currently.

This mixture of good and bad news makes it difficult to determine exactly what state the current real estate market is actually in. It could possibly mean that the first stage of the foreclosure crises has reached a peak. Year after year, foreclosure activity across South Florida has declined. Nevertheless, the foreclosure problem is still in the way of any substantial region wide recovery. South Florida is currently experiencing one foreclosure filing for every 111 homes, the fifth highest ratio in the country.

Many experts believe that we are hovering somewhere near the bottom. We only hope that this is true as many don’t expect the overall market to bottom out for another three years.
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Consider Your Options. Contact Us.

For a free consultation with a Miami lawyer familiar with deeds in lieu of foreclosure, contact Alvarez & Barbara, LLP, today. We represent clients in Miami, Homestead, Hialeah, Coral Gables, and throughout South Florida.

Miami Foreclosure Defense Tips: Deed in Lieu of Foreclosure

Do you face foreclosure? Would you like to dispose of your home? There are many alternatives that should be explored to help avoid a foreclosure. A deed in lieu of foreclosure is one of the alternatives that you should consider.

What Is a Deed in Lieu of Foreclosure?

A deed in lieu of foreclosure is a legal instrument that allows you to voluntarily give your house or condo back to the bank in exchange for cancellation of your mortgage. In other words, your deed is transferred from you to the bank in an effort to shorten the lengthy and costly process of foreclosing on your home.

In many cases, banks may reserve the right to bring a deficiency action against debtors to collect the difference between the amount they receive from sale of the home and the amount owed on the mortgage. Therefore, take time to talk with a lawyer experienced in Florida real estate law before choosing this option.

Selling Your Home to Escape Foreclosure

A deed in lieu of foreclosure is an option to consider when you would like to stop foreclosure and be released from the debt you owe. It does not affect your credit as significantly as foreclosure and may even lead to a better, negotiated settlement than you could obtain through foreclosure.

In order for you to sign over the deed to your home in lieu of the bank foreclosing on your loan, your mortgage company must voluntarily agree to it. In some cases, banks will only accept a deed if your mortgage debt is more than the current value of the property. However, a deed in lieu of foreclosure is almost always a better option for lenders because it allows them to avoid the expensive and time-consuming foreclosure process.

Our attorneys will help you initiate the process by sending a letter to your lender. Then, we will negotiate an agreement with your mortgage company that meets your current financial needs.
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Miami Foreclosure News: More People are Falling Behind on their Mortgage Payments as Personal Bankruptcy Filings Increase BASENAME: miami_foreclosure_news_more_pe

The number of people falling behind on their mortgages for the first time is on the rise, according to CNNMoney.com. Additionally, personal bankruptcies are on the rise in Miami Dade County.

Specifically, 3.51% of borrowers were 30 days late in their own payments in the second quarter, up from 3.31% at the end of last year. The shift is a stark reversal from the steady decline in short-term delinquencies during 2009. Moreover, personal bankruptcy filings rose 74%, year over year, to 1,788 cases opened, and 5% over July. Bankruptcy filings are at the highest levels since Congress overhauled the bankruptcy laws in 2005.

These grim statistics serve as a sad reminder of our reeling economy. And the high rate of delinquencies and bankruptcies leave many experts wondering whether a new round of foreclosures is on the horizon.

Alvarez & Barbara, LLP, is a team of experienced and aggressive foreclosure defense attorneys. We use the legal system to help people save their homes — and we can stand up for you.

Many people wait too long before getting legal help. They delay in the hope that they can turn their financial situation around. If you are behind on your mortgage payments or are having trouble making your monthly payments, you need to take action now. The sooner you call us, the quicker we can start working to save your home. Get help today to assert your rights in these difficult times.
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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.

Miami Foreclosure Defense Lawyers Review the Numbers Behind the Foreclosures

Double dip? Some are saying it is a foregone conclusion. Others are saying it won’t happen at all. But this much is certain. The foreclosure crises here in South Florida continues to pick up steam with no end in sight anytime soon.

South Florida has been one of the hardest hit regions in the country with respect to foreclosures. As reported in the South Florida Business Journal, the numbers are rather staggering.

For instance, more than 100,000 properties have been repossessed in the Tri-County area since the real estate market began to collapse in late 2007. That breaks out to an average of 2,300 repossessions a month. Moreover, the 100,000 mark was hit earlier this month, when 317 properties were repossessed in the tri-county area.

To understand these numbers in greater context, lenders have repossessed an average of 75 properties per day since January of 2007. Approximately 40% of all South Florida properties have been repossessed, by the banks, as a result of a foreclosure filing.

And it does not seem to be getting better. Consider a recent USA Today article discussing how 1 in 10 American households with a mortgage was at risk of foreclosure this year. About 9.9% of homeowners had missed at least one mortgage payment as of June 30th.

In a worrisome sign, the number of homeowners starting to experience problems with their mortgage rose after trending downward last year. The number of Americans missing payments and falling into foreclosure has followed the upward trend in unemployment, which has shown no sign of easing anytime soon.
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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.