Bankruptcy and Foreclosure Attorney Blog

According to USA Today, as part of the recent $25 billion settlement, the Office of the Comptroller of Currency is trying to contact millions of borrowers who may have had their home wrongfully foreclosed on in 2009 and 2010. The report goes on to state that only about 4% of the people contacted have applied to have their mortgage foreclosure reviewed by the Comptroller's office. The borrower is eligible but not necessarily guaranteed review if they meet the following criteria:
1) If the property was foreclosed on in 2009 or 2010;
2) if the property was the debtor's primary residence; 3)
and if one of the 14 services involved in the billion dollar settlement serviced the loan.

One of the main reasons consumers are hesitant in submitting their application or replying is because there is so much fraudulent activity associated with foreclosures and third party groups trying to make money off of these foreclosures. In the consumer's mind, the possible reward does not outweigh the risks of divulging personal information and sending it back by mail.

If you are a borrower who has been foreclosed on and meet the above criteria, your may want to reconsider responding to mail that you received about your foreclosures, especially if it is from a group called independent foreclosure review. A portion of the $25 billion settlement is sitting in a trust fund specifically designed to compensate wrongfully foreclosed victims. The Comptroller's Office will be trying another attempt to contact potential victims, but the deadline to submit an application is the end of July, 2012. Some victims are getting monetary reimbursements depending the level of fraud committed in the borrower's case. Again, this is not a guarantee that everyone who meets the above criteria will be reimbursed. That is what the independent review is for and to determine what is fairly owed.

Continue reading "Borrowers Foregoing Posible Settlement Opportunities on Prior Foreclosed Homes " »

Many homeowners in foreclosure have or will most likely face a summary judgment motion from the bank's attorney. But what does that mean to the every day person? If that has been filed, will I lose my case? The answer depends on many things. Does the homeowner have an attorney? If not, does the homeowner plan to attend the hearing? If so, what arguments can be made why the bank should not be allowed to continue to foreclose on the home? The standard the courts must abide by is the "genuine issues of material fact." Are there any?

What does this mean? If the facts of the case are undisputed by all parties, then there is no reason to continue litigating. Whatever side the law falls on based on the facts is the party who is going to win. If there is an issue with that, then the motion should be denied. Summary judgment motions are heard in almost every type of civil law area. The procedure is available to both Plaintiffs and Defendants. However, if the motion is made frivolously or without merit, the Court can award the party who prevails attorney fees and costs.

Why would a court deny the banks' attorneys' motion? Sometimes there are discovery requests that have not been fulfilled even though a defendant or defendant's attorney has requested documents or an opportunity to depose representatives, etc. If the defendant can show that they have done everything possible to be in compliance, it should be noted and the banks failure to respond to requests should be detrimental to the bank. Furthermore, if the defendant can show legitimate issues with the case and that there are "genuine issues of material fact" then the motion should be denied.

What if the motion is denied? What happens next? The case should then be set for trial. The odds of defeating the bank increase slightly for the homeowner because defeating the summary judgment stage is a win in and of itself in most cases. At trial, witnesses and evidence can be introduced and the Court will take it all into consideration before making a ruling.

Continue reading "What is a Motion for Summary Judgment in a Florida Foreclosure case? " »

Many homeowners look for alternatives to foreclosure before the actual case is filed or even during the pending case. The banks typically will require the homeowner to fill out a financial packet before they agree to any alternatives to foreclosure or loan modification.

The paperwork can be exhaustive and comprehensive. Furthermore, the homeowner will be divulging personal, financial information, in addition, to asset information. This can be risky considering the bank may look for a deficiency judgment against the borrower. If the bank discovers several unencumbered assets, it may tempt the bank to pursue the deficiency aggressively.

If a borrower short sales his or her primary residence, then the borrower should not be responsible for the tax liability (on the difference). If the borrower short sales an investment property, the borrower will most likely receive a tax bill for the difference, if any. Typically, the bank releases borrowers from personal liability on any deficiencies, but the tax liability probably will remain.

For more on alternatives to foreclosure, you should contact an experienced attorney.

Continue reading "Can I be taxed for the difference if I short sale my Florida home?" »

This question comes up all the time and the banks and their attorneys violate this rule more often than they should. What rule you ask? Florida law provides once an attorney or a party has learned that the opposing party has hired an attorney, all correspondence should go through the attorney and all communication should cease with the attorney's client. What kind of proof can one provide to show that the opposing party received notice? Well, it would be nice to have phone logs or return receipts for certified mail. But, many times an affidavit by the attorney or the client may be sufficient to put the other side on notice. What if that does not work and the bank or attorney continue to contact the client being represented by counsel.

There may be a Florida Fair Debt Collection Practices violation. If there is a potential claim, generally, it should be brought in small claims court unless you believe the value of the claim is worth more than $5,000.00. This figure is not inclusive of costs or attorneys fees. Only when there are actual damages, is it easier to show an actual figure one is shooting for. Many times, the banks will try and work out a settlement and avoid a judgment. Many times, packages and information/materials are sent to the borrower unbeknownest to the borrower's attorney. This should not go unnoticed.

Continue reading "Can the Bank Contact me During My Pending Florida Foreclosure case if I Have Hired an Attorney?" »

This question comes up quite frequently in the foreclosure arena. The answer really depends on a number of factors. As a practicing Florida foreclosure attorney in Jacksonville, I have this question come up quite often. Although the bank is willing to offer loss mitigation packages to borrowers, it may not be in the borrower's best interests to accept some of these alternative to a foreclosure. Borrowers assume that because a foreclosure has been filed, there is nothing that can be done to either save the home or mitigate the damage. However, many lenders will offer borrowers alternatives such as short selling the property or having the borrower sign the deed over in lieu instead of continuing the foreclosure. The bank has to approve the short sale offer (price, buyer, etc) and this can be difficult at times, especially in Florida's market. Assuming the property is the borrowers primary residence and a short sale goes through, the seller should not have to worry about deficiencies or tax liability. That is not always the case when investment property is involved.

There may be tax liabilities for agreeing to these foreclosure alternatives on investment properties. Does the borrower have multiple loans/mortgages on the property? Assuming the lien with priority is filing for foreclosure, those next in line do not have to agree to the short sale or deed in lieu. Therefore, these 2nd lien lenders may choose to sue directly on the note. They would be permitted to do so if the borrower is in default on that note. Because properties have little to no equity in most cases, the 2nd and third lienholders have no desire to foreclose on the property because the proceeds would go directly to the first lienholder. There are too many costs and fees involved to do something like this. So, what recourse do they have? They can sue directly on the note.

This is a big decision to give away or short sell a home. You should really consult with an experienced attorney before making any big decisions. You need to be fully informed of all consequences and expectations.

Continue reading "Can I Short sale or deed in lieu my Property to the Bank after a Florida Foreclosure has been filed? " »

This question is coming up more and more often especially with all of the Florida foreclosures and schemers trying to beat the system. As a practicing bankruptcy and foreclosure attorney, it is important to know the law in these types of situations. Although it may seem unfair, unless there is a specific clause saying otherwise, a landlord doe not owe the tenant an obligation to use the rent payments towards the mortgage payments. Depending on the verbage in the lease, the tenant may have some recourse against the landlord, but a tenant will probably not be justified in stopping rent payments just because the landlord is applying the rent payments to something other than mortgage payments or because the property is in foreclosure. Remember, in Florida, title remains in the owner's name until the bank or whoever actually forecloses on it in court. Therefore, this allows the owner or whoever has possession rights to the property to remain on the property for an extended period of time. Just because a property goes into foreclosure and the mortgagor is in default of the mortgage, does not stop the tenant's obligation from paying rent. Courts are not going to allow people to live somewhere for free, especially in instances like this. If the tenant stops paying rent, then more than likely the landlord will be justified in evicting the tenant.

What if the property is leased to the tenant while the property is already in foreclosure and the landlord failed to disclose this material issue? Again, it depends on the terms of the lease and whether or not the landlord breached any of those terms. Arguably, by failing to disclose that the property was in foreclosure and depending on the duration of the lease, the landlord may be acting in bad faith and unfair dealings with the tenant.

If my landlord is in default of the lease, should I pursue legal claims against the landlord? This answer really depends on the circumstances of each case. If the landlord's property is in foreclosure, then there is a strong chance that the landlord may have no assets to pursue. That does not necessarily mean that should deter you from getting a judgment against the landlord, but keep in mind it may take a very long time before you receive any benefit from the judgment. It may cost you a large amount of money in the short term on something that may or may not come into fruition in the future. Then again, the landlord may have assets or wages that can help satisfy a judgment. Even if someone has a slam dunk case, it is not always in the best interests of the client to pursue a lawsuit. Keep in mind there is a statute of limitations on every cause of action and if the action is not brought within that applicable time period, it is forever barred. Therefore, if the potential defendant is able to obtain assets and wealth in the future, without a valid judgment, you are most likely not going to be able to collect.

Continue reading "Do I have to Pay Rent if My Landlord is Not Paying the Mortgage?" »

Many homeowners who have defaulted on their mortgage payments debate over whether to sell their home through foreclosure or short sale. Foreclosure may allow the seller to remain in the home for a longer period of time and is not as disruptive to the seller's home-life as a short sale. However, these facts alone are not indicators that foreclosure is the best option for a defaulting homeowner.

Short Sale:
A short sale is where a lender agrees to accept a value less than the actual amount owed against the home because there is not enough equity to sell the home and pay all costs from the proceeds of the sale. Not all lenders are willing to negotiate a short sale. This is why a lawyer can be very helpful. An attorney can contact the lender's loss mitigation department and know what questions to ask and find out whether or not the lender is willing to negotiate a short sale.

Credit:
Many experts say that the impact each procedure has on a homeowner's credit score are not monumentally different. Essentially, it is the difference between getting hit by a bus or a train, there really is no difference. However, from experience, attorneys say the impact on a homeowner's credit score varies from person-to-person.

The decision between a short sale or foreclosure is critical and can be costly. It is wise to seek the advice of a Bankruptcy & Foreclosure Attorney. An attorney can go over your options and realistically lay out the consequences each procedure would have on you. Contact Wood, Atter & Wolf, P.A., to speak with a Bankruptcy & Foreclosure Attorney.

Close to a $26 billion dollar settlement was reached recently with the 5 largest banks in the country. Bank of America, Wells Fargo, Citigroup, Ally, and JP Morgan Chase were among the five that settled with the Federal Government for mortgage fraud and abuse. For whatever reason the settlement included only the 5 largest banks yet many more have engaged in the same type of practices and behavior. With this settlement, the banks have monetary incentives to give principal reductions and modifications, whereas before, these types of incentives were not offered. Investors of the securitized trusts are not happy about it as they feel they will be out their investments. They may still have the courts at their disposal if they feel they were duped or misinformed about the risks involved prior to making these investments, but only time will tell if the banks will be forced into paying back these investors in the form of a lawsuit/judgment.

We can only hope that this type of settlement will deter future fraud and corporate malfeasance. Again, only the 5 banks mentioned above are part of the settlement, but more than likely, many other banks were engaged in this type of misconduct and illegal practices. I am hearing of cases where homeowners are getting principal reductions and modifications without even applying for them due to the recent settlement incentives. Before the settlement, the banks would require (and in most cases they will still require) all kinds of paperwork before they approve OR deny a loan modification request. They would frequently ask the borrower to send over the same documents over and over. Why would hey request the same documents? Because to be considered for the Making Homes Affordable Program, the bank must have the most recent 3 months worth of information before the request can be approved. So, instead of the bank being diligent and completing the request the first time the docs are sent, they sit on the file and get around to it at a later date, but at that time they need additional or updated information.

I am hearing more efforts being made by the major banks to setup conferences in large cities in auditorium like environments. The purpose behind these conferences is to allow struggling homeowners to come down and meet with a loan representative from the bank and attempt to offer assistance. There are mixed reviews on these outings, but if there is a chance you may be able to save your home, its worth a shot.

Continue reading "Large Settlement with 5 Biggest Banks" »

There are numerous reports in circulation that Florida's economy, for the most part, is spiraling forward. However, one of the major facets of the economy is still holding us back: the ever declining home values and foreclosures. There is no doubt that properties in neighborhoods with foreclosures negatively effect the value of non foreclosed homes. Many bigger subdivisions have homeowner's associations and or other types of neighborhood groups to help prevent some of the properties from being vandalized or appear vacant. Some will service the yard and other noticeable defects on the outside of the property. However, many properties do not have these types of associations and there are a lot of abandoned properties where the grass is overgrown or things need to be pressure washed and maintained.

If the bank forecloses on a property and takes title, the bank now owns the property and is therefore responsible for these costs and expenses. The banks can be fined or assessed by homeowner's associations for failure to maintain the property. There is a lot of psychology behind how we can increase home values. Many believe if jobs are considered more stable and secure, the American workforce would have more confidence in investing in a home. However, if the workforce does not feel their jobs are safe and secure, they may be hesitant in making such a large investment with such a blurry future. Many people have taken pay reductions or lost jobs altogether and can no longer afford their homes. Many have been forced to file for bankruptcy relief because of the job loss or reduction and it is not something they ever want to go through again and that makes them hesitant to invest. Another theory behind what it will take to revitalize the economy are home values going up and banks having less authority or rights to take someones house from them. The idea is if home values go up and people believe they will be making a smart investment, one which allows the chance of gaining equity again, more people would make more purchases. Then its a ripple effect. If more people buy/build more homes, then contractors and other blue collar workers have jobs which allows them to make more purchases which in turn stimulates the economy.

Florida is one of the most effected states for home values declining. In fact, many reports reflect that Florida is the second hardest hit state behind Nevada. Before the real estate collapse, my guess is Florida was one of the top states for being able to "flip" and have a higher return on a real estate investment. Hopefully we can continue making strides towards restoring Florida's economy and the housing market.

Continue reading "Florida Economoy Moving in Right Direction But Home Values and Foreclosures Prohibit Full Recovery" »

A new bill has been introduced that would allow Florida courts and banks to move faster on foreclosing on "abandoned" properties. As a practicing foreclosure defense Jacksonville attorney, the new bill will have Constitutional implications, especially as we come closer to trying to define the term "abandoned." Also, the new bill shortens the time for banks to pursue deficiency judgments.

Currently, the banks have 5 years from the date of sale of the property to pursue a deficiency against the borrower. The new bill will require banks to bring these claims within 1 year of the sale date meaning once that time passes, the bank is forever barred from bringing this claim. This will restore confidence in those who have been foreclosed to purchasing another property and alleviate their concerns of not being financially capable or prepared to take on a deficiency judgment. If the bank does decide to pursue the judgment (assuming there are no legitimate defenses to the debt) the borrower could always elect to file bankruptcy to discharge the debt.

There is no doubt that properties currently in foreclosure are bringing down the values of those surrounding them, but does that negate the fact that people's homes are being stripped out from underneath them and in some cases in a most unconstitutional fashion. Society should be concerned that people re losing their homes because of corruption and fraud because it could easily happen to anyone. Most people know someone who has been or is in foreclosure. It is that prevalent. Before you allow your home to be taken over and foreclosed, you should speak with an attorney who deals in foreclosure defense.

Continue reading "New Florida Bill being Introduced to Move Some Foreclosures on much Faster" »

Different studies have different results but many are showing that approximately 5% of all Florida foreclosures are being contested. Therefore, approximately 95% are being uncontested. With these types of statistics, the banks and creditor law firms will continue to be sloppy and ignorant in their filings because they know only 1 out of 15 homeowners are actually going to fight the case. If that number increased, then more than likely the banks and law firms would tighten up their procedures and policies before filing. In most cases, that still will not change the fact that some cases cannot be cured because the note has been destroyed or lost and the rightful owner may never be determined. Those that do not fight, will most likely have their case expedited and closed much faster because the homeowner has failed to respond to the Complaint.

Typically, the homeowner (Defendant) has 20 days to respond from the date the paperwork was served on the defendant. There are a variety of issues when it comes to what constitutes valid service, but that will be saved for a separate blog. Assuming service is valid, defendant may be able to request additional time to respond to the Complaint but the defendant needs to either call up the request for hearing or get consent from the bank's attorney (Plaintiff) to ensure the request is granted. The filing of the extension does not automatically give you more time.

Assuming either a motion to dismiss or an answer with affirmative defenses is filed, both parties are entitled to discovery. All this really means is both parties can ask the other for certain documents, ask each other questions, etc. There are limitations on what can be requested or asked from one another, but that too is also meant for a separate blog. After discovery is concluded, both parties can file motions for summary judgment if no genuine issue of material fact exists. If there is a material issue of fact, the judge must deny the motion and set the case for trial. If the case is set for trial, both parties can present evidence and witnesses.

Continue reading "How many Foreclosures in Florida are Actually Being Contested?" »

Many Florida homeowners are surprised to hear that their homeowners or condo association can put a lien on the property and foreclose on that lien. As a Florida foreclosure defense attorney, it can be difficult to fight a homeowner or condo association if they have their "ducks in a row." However, many times the Association can be caught overreaching or overcharging. When a homeowner signs to buy a property where there is an association, the buyer must purchase with the understanding that he or she is doing so under the covenants and restrictions set forth by the Association. Failure to pay assessments that come due is a breach of those covenants and an allowable remedy under Florida law is for that entity to file a lien against the property and if that lien is not satisfied, then to foreclose on the property.

Can a homeowner or condo association require me to pay attorneys fees and foreclosure costs to release or satisfy the lien? The answer is yes as long as it is reasonable. Many times the Association will have a small or minimal assessment but the attorney's fee will be 3 or maybe even 4x that fee. This could be deemed as reasonable based on the case circumstances but it could also be deemed outrageous. However, attorneys fees and costs are not supposed to be added on to the "lien" being filed, only past due assessments. Florida statute 720 governs homeowner's associations and their ability or inability to charge certain fees.

What happens if foreclosure is filed? If the bank files the foreclosure, the homeowner will still want to stay current on assessments that come due. If not, the association can file the lien and look to foreclose if the bank is drawing the time out. If the association is the party filing suit, then they will typically suspend the foreclosure case if the homeowner agrees to workout a payment arrangement. Some will suspend interest during the payback period and some will charge "attorney monitoring" fees which seem a bit outrageous. It just depends on each association.

Continue reading "Can a Homeowner's Association Foreclose on my Florida Home?" »

A Missouri grand jury indicted DocX a former subsidiary of Jacksonville's Lender Processing Services. The indictment lists 136 counts of forgery and DocX president has also been indicted. The grand jury report states that mortgage documents were being signed by individuals who the bank claims worked as assistant vice presidents when no such person worked in those roles. Accusations of forgery and fabrication were mentioned throughout the report. This is very troubling but has been going on for quite some time.

"Robo signers" have been called out all over the country and notably in Florida. Major banks have been and continue to be investigated heavily for mortgage fraud because the volume of these cases reaches into the hundreds of thousands. What does this mean for homeowners? It could mean several different things. If the homeowner was damaged from the fraud, there may be possible counterclaims and the dismissal of the foreclosure action. It could mean the mortgage was a fraud and should not be allowed to continue encumbering the property. At this point, the homeowner can file a quiet title action to have the particular lien removed if it has not been already. This could result in a free house! In addition, the homeowner may be entitled to monetary damages. Courts can be and should be extremely harsh on creditors who try and perpetrate a fraud on the court.

Dismissing a case with prejudice is one of the most penalizing consequences the judge could impose. If a case is dismissed with prejudice, that means that particular Plaintiff is barred and cannot bring the foreclosure action ever again. If a case is dismissed without prejudice, the Plaintiff can still bring the action as long as it is within the statute of limitations. Attorneys fees, sanctions, and other court imposed penalties may be imposed but these are the most common.

Continue reading "Former Jacksonville Based Company Indicted for Mortgage Fraud" »

There are many rumors going around that President Obama will be or plans to implement a new home relief program in the upcoming months. Whether it is a ploy to gain political gain or if the program will have teeth, only time will tell. The jist of the plan looks to allow struggling homeowner's the opportunity to refinance the home at lower interest rates. This will in turn lower mortgage payments. The specifics of the policy have not been released, but its anyone's guess how the program will be funded and carried out. Surely, the program will have limitations and qualifications before anyone could participate in such a program. The major banks have yet to comment on the program and how it will affect their "bottom line."

What is the difference between a "refinance" and a "loan modification?" A refinance allows the homeowner through either the current lender or through a separate lender to basically have the prior loan bought out and a new loan issued. Typically the new loan is more than the old loan but it could be at a lower interest rate which in turn may reduce the payments significantly. However, typically there are closing costs and fees associated with a refinance just as if you were buying the home for the first time. You need to make sure that the long term benefits outweigh the costs. Many times the homeowner/borrower still loses money even if the interest rate is better. Refinancing requires new Truth in Lending Act (TILA) disclosures of how fees and assessments are calculated. A three day notice of rescission is also required to be provided.

What is a loan modification? Many times homeowners fall behind on their mortgages and need relief. Loan modifications are a common method to get such relief. However, loan modifications are very difficult to come by and usually require several attempts of providing certain information before the bank decides to approve or deny the request. A modification can allow the homeowner a better interest rate, it can take the arrears and add them to the back of the loan, it may involve a temporary reduced payment such as a trial period, it may involve an overall principal reduction. Loan modifications should be recorded in the public records but do not typically require TILA disclosures.

Continue reading "Obama's New Home Mortgage Relief Plan" »

One of the many duties of a foreclosure lawyer practicing in Northeast Florida is the responsibility of performing discovery. Discovery request can come in many types of forms. Requests for production, interrogatories, and depositions are three of the most common forms of discovery. When a lawyer is conducting "discovery" he or she is asking to learn information about the opposing party. All good lawyers do a general request for production when he or she becomes retained by the client. The type of case will determine the type of documents needed to request. The requests must be relevant and must reasonably lead to evidence. If not, the opposing party may object to the requests as long as the objections are timely. The timeliness factor may be different from jurisdiction to jurisdiction but generally it is about 30 days from receipt of the request. Some requests may be answered and provided while some may be objected to. In addition, each court/jurisdiction has their own rules. Criminal procedure is much different than civil or family law procedure.

What is a deposition? A deposition is an opportunity for one party to ask the opposing party (or party's representative) questions. The deposition is under oath and is considered sworn testimony. What does that mean? It means you can be prosecuted for perjury if you live under oath. There are rules that apply to the setting of deposition, who and who cannot be deposed, and what questions that can and cannot be asked during the deposition. Attorneys use the answers to these questions to have a better understanding of the facts so when they put legal arguments together, it all flows and makes sense. Depositions can be expensive and usually the party moving forward with the deposition has to bear the cost. Failure to appear for a deposition after someone has been duly noticed can pose problems for the party who failed to show. Sanctions may be imposed and costs awarded to the opposing party.

What is an interrogatory? An interrogatory is a question that must be answered by the party for which the question is directed to and it too is under oath.The questions are generally filed with the court. The questions must be answered in a timely manner. If an opposing party fails to answer timely, the moving party can ask the court to compel the noncooperating party to answer the questions. If that doesn't work, more sanctions and costs can be assessed. Requests for admissions are another popular channel for discovery. A request for admission basically speaks for itself but generally requires the responding party to admit to a fact. These two are also deemed under oath and sanctions can be imposed for failing to timely respond.

Continue reading "What is Discovery in a Florida Foreclosure Case?" »

As a Jacksonville bankruptcy and foreclosure defense attorney, I get questions all the time about the availability of different government programs for those who recently lost their job and who are struggling to make their mortgage payment. One of the programs that the Obama administration created was the ability for homeowners who recently became unemployed to essentially suspend their home loan accounts with Freddie Mac.

Before the new policy, Freddie would allow its servicers to forbear or reduce payment amounts to recent unemployed homeowners for a period of about 3 months with a maximum of 6 months. Usually, that required the servicer to get Freddie's permission before the action could be taken. The response often took much longer than needed and homeowners continued to fall further and further behind until they were finally denied for the program. Now, the period of time has been extended to 12 months and servicers have much more discretion and are on a lighter leash than before with Freddie to approve or reject these applications. At the very least, this should speed up response time and let the homeowner know where he or she stands before leading them on for month after month. Fannie has indicated it plans to begin a similar program.

Unfortunately, many of the government programs designed to help struggling homeowners have failed and failed miserably. The policies look good on paper but just have not panned out the way lawmakers hope they would. For example, just before 2011 ended, the Florida mandatory foreclosure mediation program was discontinued because of the ineffectiveness of the program. The program was designed to help alleviate some of the backlog on court dockets, but in reality, very few modifications or settlements were reached. Time, expense and effort were exhausted to no avail. Does that mean banks are not willing to participate in any type of mediation? The answer in most cases is no. The banks will setup a type of informal mediation called a "conciliation." However, the homeowner must beware of certain bank gimmicks and tricks. Many times the banks will set these appointments up unilaterally without coordination with the homeowner or the homeowner's attorney. If the appointment is set on a date and time that is not convenient for the homeowner or the homeowner's attorney, then the appointment is missed. Then, the banks will claim to the Court that they acted in good faith all along and tried to resolve the issues when in reality it was a ploy to make it appear the bank was acting in "good faith."

In time, we have to be optimistic that our lawmakers will come up with a program that makes sense on paper and in its practicality. It is going to take a program that punishes banks for failing to cooperate and negotiate in good faith.

Continue reading "Freddie Mac to Extend Aid To Unemployed Homeowners " »

As a practicing foreclosure defense attorney in Jacksonville, Florida, I have many clients who ask "if the banks are committing so much mortgage fraud, what is the homeowner's recourse against them? Can I sue the bank?" To be honest, it can be very difficult to sue national banks for mortgage fraud. I am not saying it cannot be done, but it normally takes State Attorney Generals to get involved. Banks receive a lot of protection against "unfair practices" claims and are immune from many causes of action that the homeowner looks to bring. However, when banks are acting in a "servicer" capacity they lose some of that immunity.

As more and more mortgage fraud is being uncovered, the state attorney generals are stepping in and filing actions against the banks. Many claims are being brought as class actions which allow homeowners to become part of the class and receive a pro rata portion of any settlement proceeds. Some attorney generals are suing to for equitable and injunctive relief to prevent banks from doing certain things moving forward when handling mortgage loans and applications. Because national banks do business all over, the matter can be brought in federal court.

Much of the recourse for banks committing mortgage fraud may result in banks having their foreclosure cases booted out of court. If a case is a dismissed with prejudice that party is longer able to bring that type of action against the homeowner. Most cases are dismissed without prejudice unless happens more than once. To get a case dismissed the first time with prejudice is very difficult and punitive in nature. There would have to be an extremely egregious act to warrant a case being dismissed with prejudice. If a case is filed after the statute of limitations has been filed, then the case can be dismissed most likely with prejudice. So, what does that mean to the homeowner? That means the homeowner may get a mortgage free house. Yes, that is correct.

It is possible to receive a house for free if a case is dismissed with prejudice. Again, these are few and far between but it is happening more and more. The homeowner can then file a quiet title action to make sure the county records reflect that the mortgage is longer on the property. Now, if there is a second mortgage or a home equity line encumbering the home, it is still attached to the property. The homeowner will want to keep that debt current. If the first lien is extinguished, the second lienholder has more of an incentive to foreclose because it now becomes the senior lien holder (assuming property taxes are current).

Continue reading "Foreclosure Fraud? Where is the Recourse? " »

Foreclosures are still on the rise. As a Jacksonville foreclosure defense attorney, more people than ever need assistance in defending their homes. The numbers for 2011 reflect an abrupt increase in the number of loans currently in default and 2012 doesn’t see much relief. It is estimated that, in the United States, some 6,452,000 homeowners are not paying their mortgage. The chief legal officer, and secretary of American Home Mortgage Servicing, Inc., believes without changes, the volume of foreclosures will continue to outpace the number of loan modifications.

Since the housing market came crashing down in 2008, approximately 3 million loans have been foreclosed, and it is predicted that another 5 million to 7 million more foreclosures will happen by the end of 2012!

The really depressing news… of all those foreclosures, only about 634,000 homeowners have been helped by modifications through HAMP. Talk to a Florida Foreclosure Attorney who can advise you about the Modification programs.

The executive also believes that hundreds of thousands of homeowners could potentially be helped with affordable loan modifications if they included responsible principal reduction components.

Time and time again, as a Florida Foreclosure Attorney, we hear stories of borrowers who are working directly with their lenders but are not getting any relief. The Courts have grown wise to these processes and in an effort to help borrowers the Supreme Court implemented managed Mediation. However, that program has come to an end. Chief Justice Canady made the announcement this past month and lawmakers are going back the drawing boards for other housing relief and programs. Mediation was intended to assist the homeowner, but the intentions never made its way to reality and were not practical. Few homeowners have had any real success at Mediation. Most banks were only offering modifications on a temporary modification “if you qualified.”

Do not always take for granted that one department of the bank is leading you on to a modification and that foreclosure will not be filed. In fact, that is far from the truth. Many banks will continue the foreclosure process even if the modification department is “considering” you under one of its programs. Nothing prevent the homeowner from working out a modification or reinstating a loan after foreclosure has been filed, but it may be expensive because once foreclosure is filed, the bank has incurred substantial costs in filing the case.

Did you know it is reasonable to fight foreclosure in Florida? Talk to an experienced Florida Foreclosure Attorney at Wood, Atter & Wolf, P.A., who understands that your needs are immediate and knows how to deal with the banks. We will evaluate your situation and provide you with valuable insight and legal advice so you can make and informed decision. The consultation is free, so you have nothing to lose. At Wood, Atter & Wolf, P.A., we are on your side, at your side. Don’t lose your home because you weren’t informed.

Continue reading "More Foreclosures Expected in 2012" »

Florida is a lien theory state. As opposed to titled theory states, the borrower is transferred the deed and considered the owner of the property at the time of closing. In title theory states, the borrower is not transferred the deed until all payments on the mortgage are paid. When a borrower defaults on his or her mortgage payments, the lender has the right to file a complaint in the appropriate circuit court to initiate a judicial foreclosure proceeding. The borrower must be given 90 days notice before the foreclosure proceeding is held. During this 90-day period, a borrower has the opportunity to come in a "cure" the default by paying the defaulted amount to the lender. If the borrower is unable to cure, the home will be auctioned off at a foreclosure sale. A typical uncontested foreclosure can take up to 180-200 days. However, this process can be significantly longer if the borrower contest the foreclosure, seeks delays or files for bankruptcy.

Florida does have a statutory right of redemption. This statutory right permits the borrower to retain the home after it is sold at foreclosure if the borrower can make a payment in full of the sum of the unpaid loan plus costs. Note however, that there is a time limitation on how long the borrower has this statutory right of redemption, it is not perpetual.

Foreclosures are timely and costly. If you have defaulted on your mortgage payments and risk having your home foreclosed upon you should contact a Florida Foreclosure Attorney. An attorney can provide counsel and aid during such a difficult time. Contact Wood, Atter & Wolf, P.A., to speak with a Florida Foreclosure Attorney.

The Florida foreclosure mediation program is no more, for now. The program lasted just 18 months before chief Justice Canady terminated the program yesterday. Those cases which are currently in the "mediation" program may continue with the program until the case ends. As a foreclosure defense attorney, the move is not real surprising. The program did not meet legislature expectations and is being shut down for ineffectiveness. The legislature and other elected officials will continue to work and devise policies and procedures to help aid the ever growing foreclosure crisis.

In Florida, if your primary residence was being foreclosed on, you were entitled to participate in the mediation program. If the property being foreclosed was not your primary residence, the mediation program was not available. Although this program seemed logical and beneficial on paper, it never worked out the way the policy visionaries had hoped in a practical sense. Modifications and settlements were very rare to come by and the program became expensive as more and more cases were being filed.

Many times, homeowners/defendants would prepare and attend mediation looking to workout a temporary or permanent modification. However, a common practice among the banks (more so the bigger lending institutions) was to show up unprepared or send a representative that had no settlement authority. Both parties, including mediators, expended a large amount of time and effort but to no avail. The homeowner typically left these meetings upset and discouraged while the bank representative received all of the homeowner's financial information. If the homeowner appeared to make too much money or had substantial assets, then the bank most often would deny modifications. Furthermore, this disclosure allowed the banks to determine whether or not they would pursue a deficiency judgment in the event the property sold for less than what was owed.

Therefore, as a Northeast Foreclosure Defense Attorney, I made it a common practice to advise my clients to forgo the formal mediation (unless my client was adamant about going) and continue efforts to workout something through informal mediation. I just felt it was not in the best interests of my client to prepare for these meetings and gain a sense of false hope. Many attorneys will agree with this common practice and many may not. My job is to make the client aware of every nuance of the mediation and give them an opportunity to make an informed decision as to whether or not they wish to attend.

Continue reading "Florida Foreclosure Mediation Program Coming to an End" »

The answer to this question really depends. Most of it depends on whether the homeowner hires an attorney to defend the lawsuit. After the foreclosure case is filed (assuming in Florida), the Plaintiff (bank) usually has 120 days to serve the complaint and the summons on the homeowner or tenant residing on the property. There are strict rules for service of process and many times there are issues with the service itself. Assuming service is valid, the defendant(s) has 20 days to file a response to the Complaint or else the Plaintiff may look to get a clerk's default.

If a default is entered by the clerk, it acts as a final order. The order can be set aside for good cause, but it is best to avoid having to set these aside. If you are able to file an answer or an extension of time with Plaintiff's consent (or by filing the motion, getting it set for hearing, and getting the judge's permission for more time) then so be it. The response can either come in the form of a motion to dismiss or an answer. Failure to raise certain defenses in either response could result in your waiving those defenses. Motions to dismiss are very difficult to win on, but it is possible. Pleadings must be filed in good faith and cannot be filed for the purpose of delay or hinder.

The court could sanction the attorney or the entity filing the motion if it is not on a good faith basis. During the response stage, both sides may choose to request certain documents from one another. In many instances, depositions may be taken and interrogatories sent. If the documents are not provided in a timely manner, the opposing party may ask the court to force the party to produce the documents. If the other side fails to comply after a court order has been entered making them comply, the moving party can seek attorneys fees, sanctions, and possible dismissal of the case.

After all discovery takes place, the bank may file a motion for summary judgment. This allows the bank to win the case without going to trial. It essentially says when everything is taken as true for both sides, there is no material issues left to litigate or argue. There are many ways to defeat a motion for summary judgment. If the motion is defeated then the parties set the case for trial or resolve the matter before it reaches trial.

Continue reading "What is the Normal Process of a Florida Foreclosure? " »

Many times landlords fall behind on mortgage payments where tenants reside or conduct business. In the event a foreclosure is filed, can the landlord continue to accept rent? If so, what if the tenant fails to make the payments? Florida law provides that the landlord can continue to accept rent even though the property is in foreclosure and the bank is no longer accepting payments.

In fact, if the tenant refuses to continue to pay because the property is in foreclosure, the landlord can give proper notice and evict the tenant. If the tenant is not paying because of a defect in the property, that prohibits the tenant from residing or operating the business in a habitable manner, the tenant may be able to vacate the premises and terminate the lease.

From a moral perspective, it may be best to inform a potential tenant that foreclosure has been filed if the tenant has not yet entered into the lease. The notification should be made in writing in the event the tenant tries to claim that the landlord failed to disclose or notify of the property's true status.

Continue reading "Can I Continue to Accept Rent if the Property is in Foreclosure?" »

Consider this situation: Homeowner has taken out a mortgage, made payments on time, until a few months ago. Now, Homeowner has defaulted on the mortgage payments and is served with a foreclosure action. Given the current housing market this scenario is very typical. Pursuant to Florida Foreclosure Law, Homeowner must be served notice of the foreclosure action against Homeowner's residence. Foreclosure cases are usually long, drawn-out proceedings, unlike a Landlord-Tenant eviction proceeding. Typically, a homeowner must be given 90 days notice before the action goes to court. Note the proceeding can go to court earlier than the 90-day period, however it is usually impossible to force the auction of the home sooner than 65 days from the date the foreclosure proceeding was filed. Once the foreclosure action does go to court the judge typically rules on a motion for summary judgment. If the bank wins the hearing on this motion, the Final Summary Judgment states two important things: (1) the judgment states the total remaining balance owed to the bank from Homeowner, and attorney's fees; and (2) schedules a date and time for the home to be auctioned of. If at any time after the judgment Homeowner can pay the balance owed before the auction, Homeowner can retain possession of his home - this is highly unlikely.

Continue reading "Do I have to go to court for my Florida Foreclosure Case?" »

During these tough economic times many consumers are increasingly delinquent on their debts, including mortgage payments. Thus, many consumers are faced with the fear of their home going into foreclosure. Foreclosure has many negative impacts, especially on a consumer’s credit. Foreclosures, deeds in lieu, and short sales can all be reported on one's credit report for up to seven years. However that can be negotiated.
Deed in Lieu
A deed in lieu of foreclosure is an alternative routes given to those individuals who have default on their mortgage payments. In a deed in lieu of foreclosure, the property owner voluntarily transfers the deed to the possible forecloses property to the lender. In exchange for the deed, the lender cancels the loan, promises not to initiate foreclosure proceedings against the property owner and terminate any foreclosure proceedings if already underway. As for the deficiency balance, the lender has the option to agree or not agree to forgive the deficiency balance that results from the sale of the property.

Short Sale
Another alternative is for the property owner and lender to agree to do a short sale on the home. In a short sale, the lender agrees to sale the home for an amount less than the amount due on the mortgage. Unlike a deed in lieu of foreclosure, the ownership of the property remains with the property owner, not transferred to the lender. Lenders prefer short sales where the property is distressed and the lender does not want to go through a foreclosure proceeding, which are timely and costly. Typically, any deficiency amount in a short sale is forgiven. However, some lenders have been asking borrows to assume responsibility for any deficiency amount.

The lesson here - it all comes to the terms of the agreement you signed with your lender, especially regarding forgiveness of any deficiency amount. If you are faced with a potential foreclosure proceeding it is wise to seek the advice of an bankruptcy attorney. Contact Wood, Atter & Wolf, P.A. to speak with a Bankruptcy Attorney who can help you better understand the options available to your for resolving your mortgage debt and potential foreclosure.

Continue reading "Can I short sale or sign over the deed to my property if it is in a Florida Foreclosure?" »

What happens if I do not hire an attorney to Fight my Florida foreclosure? The bank will get a swift and easy judgment and you will be out of your home within a few short months. If you hire an attorney, chances are, you can stay on the property for an extended period of time. Even if you are having to pay for an attorney to fight the case, you are still able to save and stay in a place where you and your family are comfortable living.

You may even be able to work out a loan modification, principal reduction, deed in lieu or short sale. In some cases, it can take years for a foreclosure case to end. In the meantime, you are able to save your money (because you are not making a mortgage payment) for a possible lump sum offer with the lender to reinstate the loan, or for a new place, or for other bills.

Continue reading "What happens if I do not hire an attorney to Fight my Florida foreclosure? " »

Borrowers defaulting on their mortgages is rising. There are several explanations for why this trend continues to move in the wrong direction. Because unemployment rates have stayed steady and have not increased significantly, many homeowners are questioning whether or not they want to continue paying on a home that is completely underwater. The theory is called "strategic default."

Many homeowners cannot justify to themselves paying substantial amounts for a property that will never see equity again. Another factor to contributing mortgage delinquencies could have to do with the adjustable rates that were so popular during the bubble burst. These rates are low for a period of time but then shoot up, making their payments go up. If the homeowner does not properly budget for this increase, it could cause them to get behind on the mortgage.

Continue reading "Mortgage Delinquencies Continue to Rise" »

Florida Bankruptcy and Foreclosure attorneys still see Florida as one of the highest foreclosure rates in the County. The Federal Government has recently sued Allied Home Mortgage, one of the largest privately held mortgage brokers in the County, over its fraudulent business practices.

m Allied Home Mortgage has had operations in Florida since 2003. The US District Court lawsuit alleges that Allied Home Mortgage has engaged in fraudulent lending practices for over a decade. Many unsuspecting homeowners, who borrowed funds from Allied, were ultimately unable to fulfill the terms of the loan and have faced or are now facing foreclosure. Nearly 32% of the home-loans originated by Allied Home Mortgage since 2001 have defaulted. Many of these loans were insured by the U.S. Department of Housing and Urban Development, more commonly known as HUD.

The culture of corruption in mortgage lending has gone unregulated for years, contributing to the biggest economic crisis in our country since the Great Depression. It is alleged that Allied Home Mortgage intimidated and threatened employees and even instructed some of its employees to sign certifications indicating that its branches met federal requirements used to originate mortgage loans insured by HUD. As a result, HUD has paid more than $834 million in insurance claims due to Allied’s alleged fraudulent practices.

Homeowners continue to be the biggest losers in this heavyweight battle. Tens of thousands of homeowners whose loans were originated by Allied Home Mortgage have faced foreclosure. Only time will tell if the Government will allow any recourse to deceived borrowers who borrowed from Allied.

Continue reading "Federal Government Sues Allied Home Mortgage" »

Many commercial tenants are caught in a tough situation if the landlord is getting foreclosed on. Although the landlord may be being foreclosed on, the tenant must continue to pay the rent or else could be considered in breach of the lease.

Breaching the lease can result in the Tenant being evicted. It is a highly debated topic whether or not commercial tenants enjoy or should enjoy the same rights as residential tenants. When a bank or a third party takes title and an existing lease was in place between the former borrrower and the tenant, the new owner must honor the lease or give the tenant at least 90 days to vacate the premises.

Whether or not commercial enjoy that same courtesy is not real clear. Most of the time, new property owners want viable, paying tenants and would be more than happy to let the tenant continue to occupy the premises

Continue reading "Commercial Tenants and Florida Foreclosure" »

Before the real estate collapse in 2006, many homeowners took out 2nd mortgages or home equity lines of credit on their homes. Basically, if a homeonwer has equity in real property, lenders may be willing to give a line of credit based on that equity. However, that line of credit is secured by the property and in the event of a default, the lender can foreclose on the property.

Now, is it always in the best interests for the lender to do so? Nowadays no, but they can. It is not in their best interests to foreclose on property now, because homes are so upside down.

If the 2nd lender forecloses on the property that is underwater, the first lien holder gets the sale proceeds first in order to satisfy that lien. Many times, the 2nd lender is left with nothing bit has incurred the costs of moving forward with a foreclosure.

Continue reading "Can a HELOC or 2nd mortgage foreclose on my Property?" »

In today’s economic climate, Floridians should be aware of their options if they are threatened with a foreclosure. RMFMP stands for the Residential Mortgage Foreclosure Mediation Program. The program was created by an Order of the Florida Supreme Court and its purpose is to provide an opportunity for borrowers and lenders to come up with an agreement that allows the homeowner to remain in the home.

The process involves a trained mediator, who is a third party with no stake in the outcome of the situation and whose only purpose is to facilitate effective communication and mutually agreeable solutions. The RMFMP is a beneficial option for many homeowners because it completely free of charge and its goal is to keep the family in the home.

However, there are some requirements to be eligible to participate in the program:
1) The home must be the party’s primary residence
2) The home must have a current homestead exemption
3) The loan that the party used to purchase the home must be subject to the Federal Truth in Lending Act

If you meet these requirements, you may choose to participate in the program. The process works like this: After you receive the Summons and Complaint, or Notice of Foreclosure, you must file a written Response within 20 calendar days from the date you were served. If you elect to participate in the RMFMP, your case will be assigned to an approved credit counseling agency who will contact you to talk about your financial situation. After the counseling session, your case will be scheduled for mediation, where the mediator will try to facilitate a solution that avoids your home being foreclosed upon.

A mediation session does not guarantee that the lender won’t proceed with the foreclosure action, but it does provide a non-adversarial setting in which the lender and borrower may be able to reach a fair solution that keeps the family in the home.

Continue reading "What is the RMFM Program in Florida?" »

There is new foreclosure legislation pending that cost Florida homeowners the right to defend their home in a foreclosure action by their lender. The legislation is called the Fair Foreclosure Act and it essentially would convert Florida from a judicial to a non judicial state. Do not let the name mislead you.

The legislation is a result of backed up foreclosure courts and an underfunded budget. Governor Scott recently omitted special funding to help support the foreclosure courts. Therefore, the courts are running low on resources and are asking for its elected leaders for a resolution. What does this mean for Fllorida foreclosure defense attorneys? It is uncertain but the horizon does not look well. If there is no court venue to fight the case, homeowners may lose their right to defend.

The requirements a bank would adhere to would be less stringent and less burdensome than what they are required to do now. It is ironic that will we have less regulation on the banks even in the midst of the biggest litigation scandal in decades exposed last fall.

Continue reading "New Foreclosure legislation in Florida?" »

If you are looking to purchase or refinance a home, now may be the best time ever to do so. Mortgage interest rates have reached an all time low by falling below 4% for the first time ever! In January of last year, if a borrower took out $250k on a home loan, the average interest rate was just over 5%.

Even with the record low rates, the housing market is sluggish because borrowers are skeptical of job security and have other existing debt. However, the federal government may be stepping in and reducing rates even lower for several reasons that may or may not be politically charges.

Those who choose or thinking of refinancing should run the numbers to make sure it makes sense to refinance. By refinancing, you should get a lower rate than you currently are at. You will want to see the closing costs involved to do a refinance and make sure you are still coming out on top. Furthermore, it can be difficult to find a lender willing to refinance if there is no equity in the home.

Continue reading "Mortgage Interest Rates Reach All Time Lows" »

This is a very common, but valid concern. A foreclosure can stay on one's credit report for up to 7 years. This can be negotiated with the lender and is not automatic. You would want to make sure you get these type of agreements in writing. Also, make sure you do not get a 1099 for any kind of tax liability if you are successful in negotiating a short sale or other type of debt reduction.

If you choose to fight the foreclosure, you can report to your credit bureaus that the debt is disputed and that is how it should appear on your report. What are some of the effects of having a foreclosure, short sale, or deed in lieu on yoour credit report? It can become tougher to get financing for larger purchase items.

However, if you have a good job and a stable income, you may be able to rebuild your credit and become more attractive to creditors looking to extend credit.

Continue reading "How Long Does a Florida Foreclosure stay on My Credit Report? " »

It is difficult to work something out with a lender especially if they have already filed for foreclosure. However, sometimes it does help to have an attorney represent you and negotiate with opposing counsel. Many times a workout can be accomplished without having to file for formal mediation.

Sometimes, the bank is stubborn and will not work anything out. Therefore, it is imperative to have an attorney fight for your rights and defend action. Many times clients ask if the bank will consider a deed in lieu or short sale while the bankruptcy is pending.

The answer is typically, no. However, it does not hurt to ask and if there are hurdles and roadblocks in the foreclosure suit, that may give you the leverage you need to accomplish this goal.

Continue reading "Will my Lender work with Me after Filing a Florida Foreclosure?" »

The answer is no. In Florida, the foreclosure must go through and title transferred out of your name before you have to leave the premises. This is important because it allows the homeowner to save money while the foreclosure case is pending. How are you able to save money?

Well, you do not have to make a mortgage payment while the foreclosure is pending because the bank will not and cannot accept it if they wish to pursue the action. The foreclosure case could take months, even years, if the your defend the action, before you have to move off the property.

However, if you have a 2nd lien or Home Equity Line of Credit (HELOC) on the property, those would still need be to be kept current in order to avoid a foreclosure by that entity.

Continue reading "Do I have to Move out of My House when it is in Foreclosure? " »

Many times clients ask if they should or have to make mortgage payments while they are in foreclosure. The answer is the bank (that is suing for foreclosure) will not accept payment while the case is pending. However, if you have a 2nd lien or a home equity line of credit, it is probably wise to go ahead and continue making those payments.

For example, if the foreclosure action is dismissed because you were able to work out some type of modification with the bank, and you are in default to your 2nd lien holder, that entity could foreclose on the property. When you took out the 2nd mortgage or the home equity line of credit, you used your home to secure or collateralize that debt.

When you miss payments, they could legally look to foreclose on that collateral. It may not be in heir best interest to foreclose (because they incur filing fees and other costs) because the 1st lien holder is the party that gets paid off first. In this economy, its rare to have equity after your first loan is paid off.

Continue reading "Do I have to make mortgage payments while my house is in Foreclosure?" »

For the most part, the answer to this question is no. Banks are not required to give struggling customers loan modifications. Many economic experts attribute much of the US economic recession to the banks unwillingness to cooperate and work with homeowners who are struggling with mortgage payments.

There are federal programs that require banks to "consider" customers for modifications but there are very few government programs that force banks to give modifications. This is a major problem at this point especially when the country is trying to recover from one of its deepest recessions ever.

Continue reading "Are Banks Required to Give Me a Loan Modification on my Florida Home? " »

A qualified written request (QWR) is a a request that seeks general information about the life of an account or loan. Federal Law defines "Qualified written request" as:

a qualified written request shall be a written correspondence, other than notice on a payment coupon or other payment medium supplied by the servicer, that—

(i) includes, or otherwise enables the servicer to identify, the name and account of the borrower; and

(ii) includes a statement of the reasons for the belief of the borrower, to the extent applicable, that the account is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.

The lender must respond to the QWR request within a certain period of time or else it could be held liable for failing to respond.

Many times, lenders send QWR responses back that differ from the documents that are actually filed in foreclosure cases.

Continue reading "What is a QWR? What is the Purpose for a QWR?" »

Forged foreclosure paperwork has not only affected homeowners, but the discovery of the potential fraud has also slowed foreclosure filings. Florida Courts now seem to be at the mercy of the banks due to the loss of revenue foreclosure filing fees generated. At one point in time, Foreclosures were more than 50 percent of the court system’s funding.

The Florida Legislature has recently approved a $54 million dollar loan to help the Courts through the fiscal year 2011-2012. The state is estimating an upturn in foreclosure filings toward the end of this year.

If you anticipate a foreclosure, or if foreclosure has already been filed, contact a Florida Foreclosure attorney to determine if your case involves faulty paperwork. Don’t overlook the obvious.

Continue reading "Florida Foreclosure Courts and Funding" »

Without getting into too much detail, the short answer is no. Financial institutions that received bailout money are only required to "consider" customers for modifications. Current law does not force banks to enter into modifications with struggling homeowners. Very few customers actually are put in a permanent modification.

Some loans are modified by rolling the arrears to the back of the loan but the banks are not extending the length of the loan. Therefore, in many cases, homeowners are approved for the modification but their monthly payment goes up! In some instances, customers are put on short term or trial modifications. In some cases, if the customer makes it through this trial period, then they will be put on a permanent modification.

However, in many instances, the customer is not rewarded by completing the trial period and is denied permanent modification. The loan modification process can be very frustrating and time demanding. Because the program is voluntary, its almost become a complete waste of time.

Continue reading "Are Banks Required to give Florida Homeowner's Modifications?" »

What happens if I lose my foreclosure case?

The property will be set for sale. Once the sale occurs and title transfers you will be required to leave the premises. If you fight the foreclsoure, the idea is you should have saved enough money to put something down on a new place.

Whether or not the bank will pursue a deficiency judgment or write off the debt and send you a 1099 is a different matter. There are two ways a bank can bring the deficiency judgment against you.

First, if they reserve jurisdiction in the court which the foreclosure case is brought, the bank can file a motion after the sale date for any type of deficiency against the homeowner.

The second way a bank can bring a deficiency action is by filing a separate case against the borrower. If you fear that is an option, you can always look to filing a bankruptcy or work with the IRS on paying back any tax liability.

Continue reading "What happens if I lose my foreclosure case?" »

If the party suing me for foreclosure is not the right party, can the true owner file a foreclosure against me?

Many times cases are dismissed because the wrong party is bringing the lawsuit. Does this mean that the nightmare is all over? I get a free house? The answer is probably not. Judges will usually give the foreclosing Plaintiff at least one more chance to amend the court filings and file documents that support ownership of the note and mortgage.

However, if a fraud was committed upon the court, the Plaintiff may be banned from brining another foreclosure lawsuit against that particular homeowner/defendant and a free home is more optimistic. Again, if the rightful owner brings the foreclosure action within five years of default on the loan, then the courts will most likely allow that party to continue with the lawsuit.

Continue reading "If the party suing me for foreclosure is not the right party, can the true owner file a foreclosure against me? " »

Bank of America is being sued by its investors and were close to reaching a $8.5 billion settlement. Although that number seems high, its miniscule compared to the $220 billion actually invested for these mortgage backed securities.

Deleware's state attorney general is stepping in and wants to intervew in the case because he feels the settlement offer is too low and wants to make sure investor rights are being protected. If the judge allows the state attorney general to intervene, the AG claims he will investigate further for criminal liability. He vows he will work hand in hand with the Securities and Exchange Commission.

The lawsuit was initially brought in New York because that is where a majority of these trusts were being handled by Bank of America. However, BOA is accused of misleading investors into purchasing these mortgage backed securities and perpetrating an assortment of fraud. BOA was acting as Trustee for these trusts.

Deleware's AG feels the state should be allowed to intervene because a few of these trustes were located in Deleware.

If you want to learn more about this article, please visit Beau Biden, Delaware AG, Moves To Join Bank Of America Mortgage Deal, Signaling Concerns.

Continue reading "Deleware Attorney General Stepping in Settlement Talks Between BOA and Investors" »

If the party suing me for foreclosure is not the right party, can the true owner file a foreclosure against me?
Many times cases are dismissed because the wrong party is bringing the lawsuit. Does this mean that the nightmare is all over? I get a free house? The answer is probably not.

Judges will usually give the foreclosing Plaintiff at least one more chance to amend the court filings and file documents that support ownership of the note and mortgage. However, if a fraud was acted upon on the court, the Plaintiff may be banned from brining another foreclosure lawsuit against that particular homeowner/defendant and a free home is more optimistic.

Again, if the rightful owner brings the foreclosure action within five years of default on the loan, then the courts will most likely allow that party to continue with the lawsuit.

Continue reading "If the party suing me for foreclosure is not the right party, can the true owner file a foreclosure against me? " »

Why does the Florida foreclosure process take so long?

Florida is a judicial state when it comes to foreclosing on real property. What does this mean? It means that the lender must go through the state court system and get a judgment in order to sell your home. Many states, including Georgia, are non-judicial states. Lenders do not have to use the courts to foreclose on property. They simply have to abide newspaper notice requirements and so forth to execute the sale.

Because Florida is a judicial state and Plaintiffs must use the courts to move forward with a foreclosure, there are a lot of cases backed up and just sitting on court dockets. Many of the Florida foreclosure courts have lost much of their state funding and now are trying to figure out how to handle thousands of pending foreclosure cases with limited resources. The next six months of foreclosures will be very interesting especially with the cutbacks and the high volume of case filings.

Continue reading "Florida is a judicial state when it comes to foreclosing on real property. What does this mean?" »

The Mortgage Electronic Registering Systems, Inc. (MERS) is a mortgage tracking system which was developed about 10 years ago. Until just recent, MERS used to be heavily involved in foreclosure litigation and bankruptcy disputes. MERS would actually claim to hold mortgage interests and thus had legal "standing" to sue.

How or why MERS thought it had an equitable interest in these mortgages is still puzzling, but nevertheless, courts allowed them to do it. MERS also claimed it had the right to transfer or assign mortgages. A recent case in New York seems to dispell that notion and that any puported mortgage transfer by MERS was invalid and not enforeceable. This is a defense to a foreclosure lawsuit. There are many undetected issues in foreclosure cases that only experienced attorneys can discover.

Continue reading "MERS is Withdrawing from Bankruptcies and Foreclosures" »

If you are a homeowner and are behind on your payments, how do you know when the lender will attempt to foreclose? Usually, the lender will send what is called a "notice of acceleration" even though they may not label it in that particular manner.

This notice provides the homeowner/borrower that the lender has accelerated the loan and or the total arrears. Now, the lender considers you to be in default and the only to reinstate the loan is to pay the full amount in arrears or pay the full value of the loan.

Most people cannot afford this type of payment and are forced into foreclosure. The foreclosure process can drag out and take months even years to complete. Meanwhile, the borrower/homeowner is able to save for a downpayment on a new place. If the bank never sent you a notice of acceleration and your house is being foreclosed on, you have at least one defense in your case.

Continue reading "What is a notice of Acceleration?" »

Lender Processing Services (LPS) has reported that mortgage delinquency rates through the end of June increased sharply. However, the overall number of delinquencies is lower than it was at this time last year. LPS reports that there are a total of about 6,452,000 mortgages that are gong unpaid in the United States. 2,167,000 of these are actually in foreclosure while the remaining 4,285,000 are past due but have not yet been referred to a foreclosure attorney.

Continue reading "Mortgage Delinquency Numbers Rise in Florida" »

With the rash increase in foreclosures brought on by the collapsed housing market over the last few years, the banks have found themselves in possession of an increasing inventory of foreclosed homes. Getting these houses off of the banks books and back into homeowner's hands is an essential part of the housing market recovery process. With so many of these houses on the market, the low prices fetched at bank owned sales is bringing down the property values of surrounding homes. RealtyTrac reports that these homes are generally sold at 35% less than homes that are not in foreclosure.

Miami and Phoenix are the two markets that have the highest percentage of bank owned properties in the U.S. Until this inventory is diminished home values will likely remain stagnant. A still unrealized side effect of the rampant foreclosure fraud allegations prevalent in places like Florida may be potential clouds on title that could scare buyers off or otherwise complicate sales of bank owned homes. It is hard to say what type of impact this could have on the market, but if the banks do not do a better job with their paperwork, this could prove to be another bump in the road for the real estate industry.

Continue reading "Bank Owned Sales Weighing Down Property Values" »

When homeowners have a loan amount that is higher than their house value it is called negative equity. Negative equity is often referred to as being "underwater". For a lot of borrowers in this position it can become the rationale to cease making loan payments to the lender. When this happens the lender has to make a choice to either lower the loan amount (principal reduction), charge off the forgiven loan amount, and possibly issue the borrower a 1099 for the forgiven debt or to foreclose on the property and possibly sue the borrower for the balance of the loan.

Borrowers who voluntarily stop making mortgage payments on an underwater home who have the ability to make payments, are said to have "strategically defaulted" on their loans. The reasoning behind it is that the house is not going to regain value equal to what the loan amount is and therefore the borrower feels they are just throwing good money after bad. So they stop paying the mortgage, live in the house as long as possible until the bank forecloses and sells the property, and use the money they have saved to get another property or rent.

Traditionally so called "always performing loans" or loans that usually remain current tend to be concentrated in markets that have held their value above the national average. However, since the values of these homes have been falling over the last year, their loan to value ratios (LTV) have begun to surpass the average LTVs for loans that have defaulted. Moody's believes this dynamic increases the likelihood of strategic defaults.

Moody's analysts expect home prices to continue to decrease through the first quarter of 2012, further exacerbating a climate in which strategic defaults may become prevalent.

Continue reading "Moody's Analysts Predict More Strategic Foreclosures" »

According to Hope Now's (an industry-created alliance of mortgage servicers, investors, counselors, and other professionals) monthly mortgage data, foreclosure sales have declined for a second month in a row. Foreclosure sales nationwide decreased by 7 percent from 73,000 in April to 68,000 in May. However, foreclosure filings have increased 8 percent from 163,000 in April to 176,000 in May.

Hope Now has also reported that sixty plus day delinquencies have increased slightly at a rate of one percent to a total of 2.67 million for the month of May. Modifications completed under Home Affordable Modification Program (HAMP) increased in May by twelve percent from the previous month.

With the current state of the economy and unemployment rates over nine percent, it's hard to imagine the real estate market bouncing back any time soon. If you are in a house that is underwater (fair market value is less than the outstanding loan amount) your options may be limited. It will be almost impossible to sell the home without incurring a personal obligation to pay the remainder of the loan amount. However, some banks are offering principal reductions in some cases.

Continue reading "Foreclosure Sales Have Declined For Two Months In A Row" »

President Obama recnetly announced that he is extending the forebearance period for those unemployed homeowners that qualify for the program. Initially, the period was only to last for 3 months, but because of the continued housing crisis and high unemployment rates, the program is extended to 12 months.

However, in order to qualify the homeowner must be looking for work AND a partial payment is required during the forbearance period.

With all of this being said, the programs are voluntarily entered into by the banks and they still have the full discretion to determine whether or not a particular homeowner is a candidate.

To learn more about this article, please visit Obama to extend help for unemployed homeowners to 12 months.

Continue reading "Obama Extends Mortgage Forbearance Program for Unemployed Homeowners" »

“The continuing decline in the housing market is something that hasn’t bottomed out as quickly as we expected…”, a recent twitter quote from President Obama.

The government is now pressuring banks to modify loans “more quickly”. Why has it taken so long to pressure the banks? So many homeowners across this county have already lost their homes. The Home Affordable Modification Program has been in existence for sometime now and we have all heard the statistics of the Programs success – or lack thereof.

The Home Affordable Modification Program begins with the borrower providing all financial information to bank, including checking account and income information. Borrowers willingly provide this information on the pretext and hopes that a modification will be forthcoming. Once the initial information is provided, the process begins. Borrowers are advised to make a series of monthly payments “Trial Plan Payments” while their permanent modification is being processed. The “trial modification” is supposed to last 3 months but is more likely to last 6 months or more. Meanwhile, late fees and penalties continue to accrue.

At the end of the day, more people have been permanently denied for a “Home Affordable Modification”, than have been approved. No wonder the government is now “pressuring banks to modify loans “more quickly”. The banks have now had years to try to get the process done “more quickly”, yet stories continue to be told of borrowers submitting paperwork to the bank 1, 2, 3, 4, 5, and 6 times – OR MORE!

Continue reading "Federal Government to Put More Pressure on Banks to Approve or Deny Modifications Quicker" »

Wells Fargo is facing a substantial lawsuit from investors who invested in mortgage backed securities issued by Wells Fargo. Typically, when a mortgage and note are taken out, that debt is typically sold to other entities. Many times that entity is in the form of a trust or other investment tool.

The investors of the trust make their investment into the trust and purchase these loans based on the information provided by the originator of the loan. Based on that information, investors decide if they wish to take on those types of risks by purchasing the loan.

Wells Fargo has been accused of misstating some of these risks and investors have lost a substantial amount of money as a result. Therefore, this lawsuit has been brought and alleges that several loans orginiated between 2005-2006 were fraudulently made.

To learn more about this article, please visit, Wells Fargo Agrees To Pay $125 Million To Investors In Mortgage Lawsuit.

Continue reading "Wells Fargo to Pay Investors $125 million to Settle Lawsuit " »

A recent audit shows that nearly 75% of assigned mortgages are invalid. Another 9% are considered "questionable." What does that mean? It means that most entities that claim they own the mortgage and the note are not the true owners.

That becomes important in foeclosure cases. In order for a Plaintiff to bring a lawsuit, such as a foreclosure, the Plaintiff must have standing. Standing refers just refers to an interest in the matter. If a party does not own something that it is trying to enforce, there is no interest in that item. Most mortgages and notes are transferred or assigned to a new entity. The same note and mortgage could be transferred on multiple occasions.

Therefore, it is imperative for these lenders to maintain adequate records of each transaction. However, for the most part, the banks are not keeping adequate records and are filing false pleadings in court.

To learn more about this article, please Southern Essex Registry of Deeds Audit Reveals That 75% of Assignments of Mortgage Are Invalid; O’Brien Says Banks Responsible for an Epidemic of Fraud.

Continue reading "Statistics Show that Almost 2/3 of Mortgage Assignments are Invalid " »

This depends on several factors. First, was the case dismissed with or without prejudice? If the case was dismissed with prejudice, then that action cannot be filed by the plaintiff against the defendant again. If the case is dismissed without prejudice, the Plaintiff may be able to file it again assuming the statute of limitations has not run.

If the case is dismissed with prejudice and the statute of limitations for notice of acceleration has run, then there is a interesting issue that will be seen over the months and years to come.

Can the homeowner get the home free and clear excluding insurance and property taxes? The answer is we shall see. This is the million dollar question that keeps coming up.

Continue reading "What happens if my Florida foreclosure action is dismissed? " »

Most mortgages and notes are held by different servicers and investors from whoever originated the note. Borrowers who are being sued for foreclosure are being sued by entities they had never seen nor heard of.

There should be valid assignments attached to the complaint for the Plaintiff to have standing to sue. Was the assignment executed by someone authorized to endorse such an agreement? Is the notary actually commissioned with the secretary of state? Was the assignment assigned after their was a default by the borrower?

If so, how can the assignee claim the Plaintiff was in default towards them? These are a just a few issues that have come up in the world of foreclosure defense. Because of the foreclosure crisis last fall, foreclosure defense attorneys are picking these pleadings apart. As a consumer, you are entitled to certain rights on debt collection activities. If you feel your rights have been violated, contact an experienced foreclosure attorney.

Continue reading "I Have Never Seen nor Heard of the Party suing me for Foreclosure!!" »

l Recently, in Naples, Florida, a retired police officer and his wife were served with foreclosure papers from Bank of America for allegedly being behind on their mortgage. The only problem is they were not behind on anything because they paid cash for their home outright several years before.

l So, as expected, they were extremely shocked when they were served with the papers. They hired an attorney and the bank abandoned the matter. The homeowners requested attorneys fees form the bank on several occasions but never got a response.

l The attorney then went to the local branch with two sheriff deputies demanded they start opening up drawers and droors. The bank manager called soon after handed over a check in the amount of $5,300.00 to satisfy the costs associated with the debacle.

To learn more about this article, please visitHomeowner Forecloses on Bank of America.

Continue reading "Bank of America Sued by Homewners For Wrongful Foreclosure" »

In Florida banks and mortgage companies will soon be requesting more and more pre-foreclosure mediations. While on the face of things, it may appear that Florida banks and mortgage companies are seeking to work with homeowners as to loan revisions, mortgage modifications and other relief. Florida consumer advocates are concerned that homeowners will unknowingly and in advertently waive important legal rights during the mediation process and sign documents that, in turn, make the defense of a subsequent foreclosure action more difficult for the homeowner. While pre-foreclosure mediation can be helpful in some instances, it is important for the homeowner to understand his or her legal rights and have legal representation at such proceedings. Florida Banks and mortgage companies have their own attorney and homeowners should be adequately represented in pre foreclosure mediation matters as well. Homeowners have a right to representation and should protect their rights of homeowership accordingly. For more on this topic see pre-foreclosure mediation.

Many times, clients come in and want to defend a foreclosure suit adamantly. However, I always ask them to take a step back and look at the big picture. In some instances, a client is hundreds of thousands of dollars underwater on their home because they have multiple mortgages or home equity lines of credit. Some clients have a deep emotional attachment to a home, some do not and are more willing to walk away.

At the end of the day, if you are successful in defending a foreclosure suit, you are still on the hook for the loan. Your mortgage is just brought current and reinstated.

There may be an opportunity to recover attorneys fees if the suit was filed under false pretenses, but for the most part you will not be reimbursed for paying attorney's fees.

Continue reading "Facing Foreclosure: What is your goal? " »

Last year, the state court system was alotted around $6 million specifically for the foreclosure volume crisis. The money was applied towards additional resources to help combat the volume of foreclosure actions being filed.

However, the Florida legislature claims it was a one year allocation and that that line item was omitted from the budget for upcoming year. The state of Florida fiscal year begins and ends in July. This could bode major problems to the state court system. The courts are already overwhelmed with the volume of actions being filed and that are still pending. This struggle exists even with the additional monetary allocations that were handed down by the Florida legislature over the past few years.

To learn more about this article, please visit, Florida Legislators Pull Funding for Foreclosure Courts.

Continue reading "Foreclosure Courts Must Find Seek Alternate Funding Source" »

The Third District Court of Appeals for the state of Florida handed down its opinion in Dawson v. Wachovia this past week. Mr. Dawson and his business defaulted on a mortgage secured by commercial property in April of 2008. A foreclosure suit was filed by Wachovia against Dawson and his business and the litigation roller coaster began.

Wachovia brought suit as the noteholder but used a different company to service the loan. The company that serviced the loan used to own the note but assigned it to Wachovia following the sale to Mr. Dawson and his business.

Dawson tried all types of tactics to delay the sale and get the case dismissed but was ultimately unsuccessful. However, he nor his business made a payment on the note for over 2 1/2 years and was able to stay on the property. The Third District ultimately affirmed the order of the sale of the property and the judgment was not set aside.

Continue reading "Foreclosure Stalled for over 2 years but ultimately Defendant Loses the Property" »

Moody's downgraded Bank of America's mortgage service ratings from "strong" to "above average." The recent downgrade is due in large part to the number of lawsuits against BOA for fraud and deceptive trade practices against borrrowers during the housing boom.

Allegedly, BOA is being investigated by state attorney generals, the Federal Reserve and other governmental agencies as to whether its mortgage representatives pushed through foreclosure cases without thoroughly looking at the documents. Reps were allegedly signing affidavits and swearing that they had thoroughly looked through documents before actually moving forward with the foreclosure, when in fact, they had not.

To learn more about this article, please visit Moody's cuts BofA's mortgage servicing ratings.

Continue reading "Bank of America Service Ratings Take a Hit " »

Lender Processing Services (LPS) Ben-Ezra & Katz law firm, and LPS Default Solutions, Inc. are being sued in the Florida Northern District Federal Court. The complaint alleges, among other things, that these entities defrauded bankruptcy courts and breached the federal bankruptcy code by misrepresenting what was owed for attorney's fees.

There are several other plaintiffs looking to file similar complaints, therefore, the action may class actionable in the near future.

The above mentioned law firm allegedly split fees with the LPS subsidiary and classify attorneys fees as administrative fees as to the amount that was owed. In addition, the law firm is based out of Ft. Lauderdale but is one of many who alledgely defrauded bankruptcy courts.

Representatives from LPS failed to comment on the litigation, but made note that these types of actions have been attempted before, but never have succeeded.

To learn more about this article, please visit, Mortgage foreclosure mill sued in alleged kick-back scheme.

Continue reading "Foreclosure Mill being Sued in Florida District Court " »

In a recent post, we mentioned the closing of the David J. Stern office. They were a powerhouse foreclosure firm that represented creditor rights nationwide. With the announcement of their closure, there are over 9,000 cases in limbo throughout the state of Florida.

Case management officials are trying to distribute the cases to those wishing to take them, but it is anticipated that many of these cases will be dismissed. Although they may be dismissed, that will not preclude the banks from refiling these foreclosure suits.

However, it will give homeowners an extra few months to stay in their homes before having to surrender and vacate them. To learn more about this article, please visit South Florida law firm's demise puts 9,000 foreclosures in limbo.

Continue reading "Stern's closure leaves thousands of Foreclosure cases Pending " »

The Florida court system announced a deficit of over $72 million because of a shortfall in foreclosure filing fees. In former posts last fall, we discussed how former Attorney General, Bill McCollum, was probed into investigating the "mill" firms that were filing these foreclosure suits.

There were several allegations against large foreclosure law firms for "robo-signing." The allegations accused account executives of signing affidavits that stating the account executive had done everything in its power to avoid foreclosures, when in reality, they had not.

Now, through the abundance of foreclosure filingsover the last year, the Florida court system is experiencing a huge deficit and is asking Governor Scott for extra funding. In a recent post, we mentioned David J. Sterns foreclosure group is shutting down operations at the end of this month.

To learn more about this article, please visit Florida Court System Facing $72.3 Million Deficit Due to Shortfall in Foreclosure Filing Fees.

Continue reading "Florida Courts Facing Deficit Due to Foreclosure Filing Fees" »

Many Floridians have had to face the dreadful experience of a foreclosure. Just when they they thought it could not get any worse, they get a letter from the IRS stating that the debt forgiven will be considered income to you.

Financial institutions that write off more than $600 are supposed to send the IRS and the defaulting borrower a 1099-c statement. If the property foreclosed upon was your primary residence, the "income" or "deb forgiven" is exluded as income (up to $2 million).

To learn more about this article, please visit http://www.news-leader.com/article/20110313/BUSINESS/103130322/Forgiven-debt-can-trigger-tax-bill?odyssey=mod%7Cnewswell%7Ctext%7CSpecial%20Reports%7Cs.

Continue reading "My house was foreclosed on: Is the forgiven debt "income" to me? " »

The law offices of David J. Stern will be ceasing operations on March 31, 2011. The announcement was communicated with the Securities Exchange Commission recently.

Mr. Stern's offices focused primarily on foreclosure filings and was heavily criticized in recent months. Former Florida State Attorney General, Bill McCollum, took the lead in investigating several law firms last fall who allegedly participated in the practice of "robo-signing." Stern's firm was arguably the largest foreclosure law firm in the state of Florida.

In fact, it is reported that over 750 cases in St. John's County were released by the firm.

To learn more about this article, please visit Foreclosure lawyer Stern to shutter firm.

Continue reading "Foreclosure Powerhouse David J. Stern is Closing Down" »

Many Floridians are having their homes foreclosed on, but most citizens are unaware of when they actally have to vacate the property. When must a debtor/homeowner vacate?

Although a sale date is set for the home, the tenant may still occupy the property until the lender sues the debtor individually and gets a judgment against the debtor. Only then will the debtor be legally obligated to leave the property. Florida law sets out this procedure and iit s unique to many other state jurisdictions. Debtors in Florida have the opportunity to stay in their homes longer than most debtors from other states.

Continue reading "My House is Scheduled for Foreclosure: Do I have to leave the property?" »

Until recent, high foreclosure rates were attributed mostly to bad loans and overvalued property prices. However, the unemployment rates and job reductions are said to be the biggest causes for recent spikes in foreclosures. Everyone has been impacted in some way or the other with the recent economic decline.

The housing market has been impacted tremendously. However, there are alternatives to foreclosure. Borrowers can try applying for loan modifications. There are different types of modifications available, but the lender does not have to approve the new terms. If catching up on mortgage is unlikely, you can apply for a dee in lieu.

A deed in lieu entails the borrower signing over the deed to the lender and the lender in return, releases the borrrower from liability. Another alternative to a foreclosure is asking the bank to approve a short sale. In a short sale, the bank agrees to allow the borrower to sell the home for less than the value of the loan and the lender will release the borrower from liability if short sale offer is accepted by a buyer. Deed in lieu and short sales can stay on your credit report for up to seven years.

To learn more about this article, please visit Foreclosure activity up across most US metro areas.

Continue reading "High Foreclosure Activity Continues to rise Nationwide" »

The high rate of Jacksonville foreclosures succeeded in vaulting the city to a #17 ranking on the list of cities nationwide with the highest foreclosure rates in May, up 23 positions from its #40 ranking just one month earlier.

RealtyTrac reported the jump, with one analyst saying that while Florida’s markets are generally more volatile due to the state’s judicial foreclosure system, it is unusual to see such a marked change in one month.

May was the first month that Jacksonville was in RealtyTrac’s Top 20 U.S. cities with the highest rates of foreclosure. In May, the Jacksonville metro area jumped 57 percent from April, and 42 percent from May of 2009.

Jacksonville had 2,805 foreclosure filings in March, and the foreclosure rate dipped to 2,415 filings in April. Jacksonville foreclosure filings in May jumped to 3,789, the highest by far in 2010.

In addition, recent data from the Real Estate Strategy Center of North Florida shows that 95 percent of the homes sold in Jacksonville went for less than their purchase price.

Jacksonville homeowners facing foreclosure can learn more about the Florida foreclosure process and their legal options in avoiding foreclosure by consulting with a Jacksonville foreclosure lawyer.

The Northeast Florida Association of Realtors (NEFAR) released their report on residential sales statistics for June. Covering single-family residential and condo sales, the statistics show that closed and pending sales are up, prices are down and there is plenty of foreclosure property sales activity in Northeast Florida.

According to the NEFAR June numbers, pending sales went from 1,386 in June 2009 to 1,663 in June 2010, an increase of 20 percent. Closed sales were 1,370 in June 2009 and 1,613 in June 2010, an 18 percent jump.

NEFAR numbers for median and average home sales price were both down; in June 2009, the media home price in Northeast Florida was $160,000 and in June 2010 the median price fell 10.6 percent, to $143,090. Average home sale prices fell 6.5 percent, from $184,555 in June 2009 to $172,481 in June 2010.

NEFAR said that it was worth noting that while prices decreased for both traditional and lender-mediated sales, the amount of the decrease was significantly different. Traditional sales prices dropped by 5.4 percent, while lender-mediated prices fell 15.2 percent, year-over-year.

In a press release, NEFAR president Carol Hill said, “Northeast Florida's housing sales have been on the same track for 16 months now; we're seeing more sales at very buyer-friendly prices."

Online foreclosure property marketer RealtyTrac released statistics last week that showed the number of Jacksonville foreclosure notices in June declined by 14 percent from the previous month, but still remained high at 3,242.

The May 2010 number of foreclosures in Jacksonville was the highest since last August, reaching a total of 3,640 for the month. The June decline was most noticeable in Nassau and Duval counties, which experienced 47 percent and 20 percent declines, respectively.

RealtyTrac also reported that approximately 2.6 percent of Jacksonville area homes received foreclosure notices in the first six months of 2010. The Jacksonville metropolitan area includes five counties: Duval, Baker, Clay, Nassau and St. Johns. RealtyTrac says that one of every 39 homes in the Jacksonville metro area received a foreclosure notice during the first half of the year.

Foreclosure notices increased from May to June in three Jacksonville metro counties, including Baker County, which saw a 30 percent increase in foreclosure notices sent to homeowners in June. The rate of foreclosure notices in St. Johns County rose by 9.4 percent in June, and by .5 percent in Clay County.

Florida continued to rank third in the nation for foreclosure notices in the first half of 2010, and three Florida metro areas were in the Top 10, including Cape Coral-Fort Myers (#2), Orlando-Kissimmee (#8) and Miami-Ft. Lauderdale-Pompano Beach (#10).

Relying on data from Jacksonville-based Lender Processing Services of the percentage of homeowners who were more than three months late on their mortgage payments as of the end of May, Forbes magazine has compiled its list of the Top 10 Riskiest Cities for Homeowners:

1. Las Vegas, NV
2. Riverside, CA
3. Stockton, CA
4. Modesto, CA
5. Bakersfield, CA
6. Vallejo, CA
7. Orlando, FL
8. Memphis TN
9. Miami, FL
10. Fresno, CA

Two Florida metropolitan areas – Orlando and Miami – made the Top 10 list. Orlando was ranked #7 with 7.18 percent of loans more than 90 days delinquent and 11.24 percent of homes in foreclosure. Miami ranked #9 with 7.05 percent of loans more than 90 days delinquent and 15.28 percent of homes in foreclosure.

However, the two Florida cities are the only ones in the top 10 whose percentage of homes in foreclosure is lower than that of homes with severely delinquent loans. The Forbes article chalks this up to efforts by loan servicers and the federal government to modify loans and find other ways to keep homeowners in their homes.

Compared with the 4.4 percent national average for 90-day delinquent loans, all ten cities have significantly higher average delinquency rates – more than seven percent – than the nation’s 100 largest metropolitan areas.

The U.S. Department of Housing and Urban Development (HUD) is providing underwater homeowners with a new mortgage refinancing program through the Federal Housing Administration to fend off a new round of foreclosures.

Approximately $14 billion in TARP funds have been allocated to the program, which is targeted to homeowners in a negative equity position as of the end of June, 2010. Through the enhanced FHA Short Refinance option, borrowers who are current on their existing non-FHA mortgage now have the opportunity to refinance into a new FHA insured loan if their existing lenders agree to write off at least 10 percent of the unpaid principal balance on the first mortgage.

To be eligible for the new loan, a homeowner must:

• Owe more on their mortgage than their home is worth;
• Be current on their existing mortgage payments;
• Qualify for the new loan under the standard FHA underwriting requirements;
• Must be refinancing a primary residence;
• Have the agreement of the first lien holder to write off at least 10 percent of the unpaid principal balance.

The Treasury will also provide incentives to secondary lien holders who agree to full or partial extinguishment of those liens.

If you are a Florida homeowner facing foreclosure, contact our Jacksonville foreclosure defense law firm.

• Has the value of your home dropped to 75% or less of what you currently owe?


• Do you have to raid your retirement accounts to pay your mortgage?


• Can you pay your mortgage and still take care of your other financial obligations?


• How long will it take for the home price market to come back where you live?


• Can you deal with the hit your credit score will take?

• Your home must be an owner-occupied, single family home.


• Your home must be a primary residence.


• Your home must be occupied, not vacant or condemned.


• Your primary mortgage must be less than $729,750 to qualify for federal loan modification assistance.


• You have a monthly housing expense-to-income ratio greater than 31 percent of your gross monthly income.

Starting July 19, homeowners who live in Flagler, St. Johns, Volusia and Putnam counties in Florida and are facing foreclosure will be referred to mandatory mediation.

Last December, the Florida Supreme Court ordered all Florida counties to institute mortgage foreclosure mediation programs in an effort to help unclog the Florida foreclosure courts, which currently face up to a three-year backlog of cases statewide for nine foreclosure judges.

They also hoped that a mandatory mortgage mediation program would help Florida homeowners facing foreclosure stay in their homes.

In 2009, there were 16,419 foreclosure filings in the four-county area. A Daytona Beach mediation group – Upchurch White and Max Mediation Group -- has been selected as the foreclosure mediation manager for the four counties that are represented by the 7th Judicial Circuit.

Residential foreclosure filings made on or after July 19 will be referred to the mediation management group; homeowners who filed prior to July 19 can request that their case be placed in mandatory mediation by contacting the Upchurch White and Max Mediation Group in Daytona Beach.

Homeowners who participate in the mandatory mortgage foreclosure mediation process will participate in comprehensive financial and debt management counseling as well as meetings with their lenders to review their personal financial and mortgage information. They will then meet with a mediator who has been trained in foreclosure mediation to finalize the disposition of their case.

• Guarantees to stop the foreclosure process – no matter what your circumstances


• Instructs you not to contact your lender, lawyer, or credit or housing counselor


• Collects a fee before providing you with any services


• Accepts payment only by cashier’s check or wire transfer


• Encourages you to lease your home so you can buy it back over time


• Tells you to make your mortgage payments directly to it, rather than your lender


• Tells you to transfer your property deed or title to it


• Offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale


• Offers to fill out paperwork for you


• Pressures you to sign paperwork you haven’t had a chance to read thoroughly or that you don’t understand.

Strategic defaulters – those who walk away from their homes – are the new target of Fannie Mae, the mortgage giant that says it will pursue deficiency judgments against any borrower it can prove strategically defaulted on a home loan.

According to recent statistics, nearly one-third of all mortgage defaults are strategic.

Fannie Mae says it has instructed its servicers to monitor all delinquent loans on the verge of foreclosure, and recommend cases for pursuit of deficiency judgments where allowed by law. A deficiency is the amount between what the borrower owes and what the lender is able to get for the property in foreclosure.

In Florida, creditors are allowed to pursue a deficiency judgment for one year following a foreclosure. If a deficiency judgment is not requested as part of a foreclosure proceeding, then the creditor has up to five years to file a new deficiency action.

Fannie Mae said it would base its assessment of strategic defaults by examining a borrower’s household income, credit report and documentation on prior loans. If a borrower is found to be a strategic defaulter, Fannie Mae will pursue a deficiency judgment and tack on any additional costs for repairing or renovating the abandoned home.

In addition, strategic defaulters will not be allowed to secure a Fannie Mae loan for seven years following the foreclosure.

The Federal Home Loan Mortgage Corporation – commonly known as Freddie Mac – said in its September economic outlook that existing home sales will decline more than 20 percent in the third quarter compared with the same period one year ago.

Freddie Mac said that continued high delinquencies, foreclosures and falling home sales have all contributed to a lack of confidence in a housing recovery, and that the main issue for the housing market outlook is how much of declining sales can be blamed on home sales that were pulled forward by the federal homebuyer tax credit that expired in June.

In its September outlook, Freddie considered two scenarios for how the market might respond following the end of the government stimulus. The first scenario assumes that about 600,000 homes were pulled forward because of the tax credits, and that these will be paid back over a gradual recovery.

The second scenario supposes that only 300,000 homes were pulled forward and the rest were sales that would not have happened without the tax credit. Under this scenario, sales would recover must faster, maybe even by the end of October.

Freddie also predicted that the 30-year fixed-rate mortgage rate would increase gradually over the next six months, passing 5 percent in the last quarter of next year, and that unemployment would decrease to 8.6 percent by the end of 2011.

If you are a Florida homeowner who is interested in learning more about how to avoid foreclosure, contact our Jacksonville foreclosure defense law firm.

The Better Business Bureau has issued a warning to consumers that while the housing market may not be thriving, the foreclosure rescue scam business is booming.

In a press release, the Bureau quoted statistics from U.S. Government Accountability Office (GAO) and Federal Trade Commission reports about foreclosure rescue and loan modification scams that primarily consist of two main types: the advance-fee loan modification scheme and the sales-leaseback scheme.

In the advance-fee scheme, scammers promise that they can get a homeowner’s loan modified to avoid foreclosure if the homeowner pays an upfront fee, usually around $3,000. The scammer takes the money and does nothing.

In the sales-leaseback scheme, the scammer persuades the homeowner to sign the deed over to them by offering to pay the mortgage while charging the homeowner a lower rent. They promise to sell the property back eventually, but they often take another loan out on the home or even sell it out from under the original owner.

The Bureau advises consumers to look out for these red flags and avoid any business that:
• Guarantees to stop the foreclosure process
• Tells homeowners not to contact their lender, attorney or credit counselor
• Collects an upfront fee before doing any work
• Instructs homeowners to make mortgage payments to them instead of their lender
• Encourages homeowners to lease their homes and buy back over time
• Asks homeowners to transfer their deeds to them
• Pressures homeowners to sign paperwork they do not understand

If you are a Florida homeowner who is interested in learning more about how to avoid foreclosure, contact our Jacksonville foreclosure defense law firm.

The Northeast Florida Association of Realtors reports that over 51 percent of the 1,316 existing home sales in Jacksonville were distressed properties – homes that are in foreclosure, bank-owned or included in a short sale.

As a result, the median price of existing homes sold fell 13.3 percent in August from the same month one year ago in the Jacksonville metro area, which includes Clay, Duval, Putnam and parts of Nassau and St. Johns counties.

The association also reported that Jacksonville metro area pending sales – which is an indicator of future sales activity – rose in August, with 16.6 percent more homes under contract and waiting closing than during the same period last year.

The Orlando Regional Realtor Association reports that while home sales in the Orlando area rose almost 11 percent in August compared to the same month one year ago, short sales and foreclosures continue to dominate the market and contributed to a decline in sale prices of almost 22 percent.

According to the association, bank-owned foreclosure properties and short sales made up over 71 percent of August 2010 sales in the Orlando metro area, which includes Orange, Seminole, Osceola and Lake counties.

The median existing home sale price dropped from $128,000 in August 2009 and $108,700 in July 2010 to $99,900 in August of this year.

The rising supply of homes for sale – including a “shadow inventory” of homes being sold as a result of homeowners who are in default or foreclosure – may continue to negatively affect U.S. home prices for another three years, according to a Bloomberg report.

Analysts from Moody’s Analytics, Fannie Mae, Morgan Stanley and Barclays agree that shadow inventory is preventing prices from bottoming out. Median home prices have dropped 28 percent since 2006 in the U.S.

Experts say that once prices bottom out, it will take three or four years for prices to consistently rise one to two percent a year – making a full equity recovery for many homeowners more than a decade away.

On Sept. 15, Fannie Mae lowered its 2010 forecast for home sales, and is now projecting a seven percent decline from 2009. A senior analyst from Moody’s estimates that approximately two million homes will be seized by lenders via foreclosure by the end of 2010, and predicts that this additional inventory will result in a price reduction of another five percent.

Fannie Mae reported earlier this month that seven million U.S. homes are vacant or in the foreclosure process. Florida is the second highest state in the nation for foreclosure filings.

Some homeowner’s associations in Florida are lining up behind lenders to file foreclosures on homes that are behind in their assessment and dues payments, according to a story recently in the Bradenton Herald.

The story noted that one Manatee HOA, frustrated by a number of unsuccessful attempts to persuade a homeowner to pay his past due assessments, reluctantly took the step of foreclosing on his home. And, according to the article, this tactic is coming into use more frequently with the number of homeowners past due on their HOA payments growing every day due to continued high unemployment and the ongoing economic slump.

In Manatee County alone, there were 192 foreclosures filed by HOAs in 2009, compared to only 83 filed in 2008. As of June 30, there were 80 foreclosures filed by HOAs in Manatee County so far for 2010.

Under state law, Florida foreclosures must be handled through the courts, so many HOAs remain skeptical about being able to recoup delinquencies when legal fees might eclipse what they can collect. In addition, in Florida, HOAs take a back seat to lenders in lien priority, so if a bank has already filed a lien on a home, it makes little sense to attempt to collect HOA debts through foreclosure.

A more affordable version of the Home Equity Conversion Mortgage (HECM) has been announced by the Federal Housing Administration in an effort to help struggling seniors access the equity in their homes to pay living and healthcare expenses.

The new HECM Saver has lower upfront closing costs for homeowners who want to borrow a lesser amount than what is available through the standard HECM loan. The option will become available on Oct. 4, 2010.

FHA Commissioner David H. Stevens said that the agency designed the new reverse mortgage loan product because many seniors have found the HECM fees to be too expensive. HECM Saver significantly lowers the upfront Mortgage Insurance Premium that is required for a standard HECM loan.

HECM Saver will carry an upfront premium of 0.01 percent of the property’s value, as opposed to the two percent premium that was required for a standard HECM loan. The monthly Mortgage Insurance Premium will be charged at an annual rate of 1.25 percent of the outstanding loan balance.

The FHA said they could offer the lower fees because the risk is less when homeowners are borrowing less. Those who opt for the HECM Saver will get 10 to 18 percent less than they would receive under a standard HECM loan.

If you are a Florida homeowner who is interested in learning more about how to prevent foreclosure, contact our Jacksonville foreclosure defense law firm.

Bank repossessions were up 25 percent in August from the same month one year ago, according to RealtyTrac, a foreclosure online marketplace. Home repossessions were at the highest level last month since the beginning of the mortgage crisis three years ago.

RealtyTrac said that more than 2.3 million American homes have been repossessed since December of 2007, and estimates another one million homes will be lost to foreclosure this year.

Data shows that lenders repossessed more than 95,000 homes in August, which is a three percent increase from July and a 25 percent increase from August of 2009. August was the ninth consecutive month for year-over-year increases in foreclosure rates.

Banks have increased repossession activity in an effort to shrink their bad loan backlog, but are reluctant to saturate the market with repossessed properties for fear of further decreasing median home prices. It is estimated that fewer than one-third of bank repossessions are currently on the market.

Lenders are also delaying the initiation of foreclosure proceedings against delinquent borrowers, which is allowing homeowners to stay in their homes longer. Initial defaults fell in August by 30 percent over August 2009, and have declined on an annual basis for the past seven months.

The Mortgage Bankers Association reports that refinancing and home mortgage applications both declined for the third straight week for the week ending September 17, an indication that home sales are stalling even more following the expiration of the federal homebuyer tax credit.

Even with interest rates at near-record lows, refinancing applications were down one percent for the third straight week, and home purchases fell 3.3 percent for the week. According to the MBA, the combined four-week moving average fell 2.3 percent. Currently, over 81 percent of mortgage application activity is for refinancing.

Credit continued high unemployment and weak economic conditions for keeping homeowners in their current home, and discouraging others from a purchase. Experts say that without more hiring, a housing market recovery is unlikely, since people need income to qualify for mortgages.

Florida’s unemployment rate rose to 11.7 percent in August from 11.5 percent one month earlier and 10.7 percent in August 2009. Florida currently has the fifth highest unemployment rate in the country, after Nevada (14.4 percent), Michigan (13.1 percent), California (12.4 percent) and Rhode Island (11.8 percent). Some areas of the state fare worse than others – Duval County unemployment was at 12.7 percent in August, up .02 percent from July and 1.2 percent from August 2009.

If you are a Florida homeowner who is interested in learning more about how to prevent foreclosure, contact our Jacksonville foreclosure defense law firm.

The authors of a new Princeton University study said that the U.S. foreclosure crisis has racial dimensions, and that racial discrimination played in key role in the large number of minority homeowners who defaulted on their mortgage loans.

According to the study, African-Americans were more likely to be given sub-prime loans than whites, even when financial backgrounds were similar. From 1993 to 2000, the study found that the number of minority sub-prime loans increased from two percent to 18 percent, and that residential segregation created a pool of minority borrowers that lenders targeted with more risky sub-prime loans.

The Princeton study, published in the October issue of the American Sociological Review, was authored by two Woodrow Wilson School of Public & International Affairs scholars. Their findings showed that racial segregation in housing is a powerful predictor of foreclosure rates. Minority neighborhoods are usually underserved by leading financial institutions, making them more vulnerable to predatory lending practices.

The authors compared borrower financial data and residential location for white and minority homeowners in 100 U. S. metropolitan areas for the study. They concluded that the government needs to take action to remove discrimination from lending practices by amending the Civil Rights Act and sanctioning those lenders that discriminate.

Real estate data and analytics firm Radar Logic analysts say that delaying foreclosures could “simply push the economic reckoning further into the future, and any relief in the short term will be offset by pain in the middle- or long-term, with no net benefit to housing markets or the national economy."

The current foreclosure moratorium by some of the nation’s largest lenders have economists scrambling to determine what kind of impact action may have on the housing market. Radar Logic says that although halting foreclosures for a time may give borrowers an opportunity to catch up on their delinquent payments, analysts believe it is unlikely that they will do so.

Radar Logic said that their data indicated the fewer homes taken back by a lender in the foreclosure process could temporarily reduce what it calls “motivated sales”, which can lead to a price increase. The company said that currently, motivated sales represent the largest pool of real estate transactions in the top 25 U.S. metro areas that the firm tracks.

Radar Logic noted that the foreclosure halt could lead to positive impacts as well. If borrowers were able to restructure loans or get caught up on payments, this would limit the pool of lower priced homes for sale, which would in turn stabilize home prices at a higher level.

All of Florida’s major metropolitan areas, including Jacksonville, were listed in the Forbes Top Ten Cities with the Highest Foreclosure rates. Jacksonville made it on the foreclosure list as the result of its seven percent foreclosure rate and 13 percent rate of mortgages that are 90 days or more past due.

Other cities on the Forbes Top Ten foreclosure list of metro areas of 100,000 homes or more included:

• Miami, FL – 18 percent foreclosure rate and 27 percent rate for mortgages 90 days past due
• Las Vegas, NV – Nine percent foreclosure rate, 20 percent rate for mortgages 90 days past due
• Newark, NJ -- Six percent foreclosure rate, 10 percent rate for mortgages 90 days past due
• Chicago, IL -- Five percent foreclosure rate, 10 percent rate for mortgages 90 days past due
• Riverside, CA -- Five percent foreclosure rate, 16 percent rate for mortgages 90 days past due
• Camden, NJ -- Five percent foreclosure rate, nine percent rate for mortgages 90 days past due
• Nassau-Suffolk, NY -- Four percent foreclosure rate, 10 percent rate for mortgages 90 days past due
• Phoenix, AZ -- Four percent foreclosure rate, 13 percent rate for mortgages 90 days past due
• Detroit, MI -- Four percent foreclosure rate, 14 percent rate for mortgages 90 days past due

Palm Beach County Judge Jack S. Cox has ruled that Florida Attorney General Bill McCollum lacks standing to file a subpoena against one of the law firms targeted in the state’s “foreclosure mill” investigation, which effectively blocks the investigation of that firm’s foreclosure practices.

McCollum has alleged that Boca Raton law firm Shapiro & Fishman was one of four Florida law firms that may have used fraudulent documents to speed the processing of foreclosure cases on behalf of lenders.

McCollum had subpoenaed documents, emails and contracts from the firm’s last five years of transactions on behalf of lenders. In his ruling, Cox found that the Attorney General lacked standing under the Florida constitution and separation of powers doctrine to regulate attorneys, which he said only the Florida Bar or the state Supreme Court can do.

Legal experts said that Cox’s ruling could halt the state’s foreclosure mill investigation entirely, although McCollum’s office said it was still exploring its options for proceeding or appealing the judge’s ruling.

Florida leads the country in foreclosure filings, with over 400,000 to date in 2010. The four law firms that are currently being investigated are involved in approximately 80 percent of those cases, according to media reports.

According to real estate analysis firm RealtyTrac, short sales – where lenders accept less than what is owed on a property -- accounted for one-fifth of all Florida home sales in the second quarter of 2010, an indication that lenders may be more willing to work with distressed homeowners.

Nationally, short sales were less than half that of Florida’s rate, at 9.5 percent. During the second quarter, 34 percent of all Florida home sales were foreclosures, which includes short sales and sales of bank-owned homes.

RealtyTrac also reported that foreclosure activity in the U.S. was up by four percent in August compared with the previous month, but down by five percent compared with foreclosure activity in August 2009. Last month, one in every 381 U.S. homes received a foreclosure filing.

In August, Florida foreclosures decreased on a year-over-year basis for the fifth straight month, but Florida continues to be the second highest-ranking state for foreclosures in the country behind Nevada. During August, one in 155 Florida homes received a foreclosure filing, which is 2.5 times the national average.

Florida accounts for almost 17 percent of the national foreclosure total, with almost 57,000 properties receiving a foreclosure filing in August – a 10 percent increase from July 2010 but a nine percent decrease from August 2009.

A new bill has been introduced in the U.S. House of Representatives by Rep. Dennis Cardoza (D-CA) that would allow homeowners with mortgages either held or backed by Fannie Mae or Freddie Mac to refinance with historically low locked-in rates.

Up to 30 million American homeowners may be eligible for the program if the bill passes. They would be able to refinance without penalty regardless of credit history, income level or loan-to-value ratio, according to Cardoza. The legislation would make it possible to refinance a government-backed loan with a new 30-year, fixed-rate mortgage at the prevailing market rate, which is currently around 4.3 percent.

The Cardoza plan would not provide for writedowns of principal balances for homeowners who are underwater on their mortgages, but it would allow them to refinance to obtain a lower monthly payment. Cardoza said he introduced the bill to help stop foreclosures.

Cardoza’s plan is a revamp of an earlier bill he introduced in January of 2009. He said that historically low mortgage interest rates now make the plan more viable. The plan calls for Fannie Mae and Freddie Mac to issue new mortgage-backed securities to fund the refinancing program, using the proceeds to pay off existing mortgages.

However, the bill is expected to face an uphill battle in Congress, and no action is expected on it until after the November elections.

If you are a Florida homeowner who is interested in learning more about how to avoid foreclosure, contact a Jacksonville foreclosure defense lawyer.

JPMorgan Chase said that it is putting a temporary halt to open foreclosure cases while it verifies that foreclosure documents filed in court were reviewed properly.

Earlier this month, GMAC Mortgage stopped its foreclosure proceedings when it was revealed that employees signed foreclosure affidavits without reviewing the loan files. Chase said that it has discovered a similar situation in one of its loan offices, but believes the affidavits filed in foreclosure cases it is involved in are accurate and not affected by whether or not the signer knew loan file details. Chase has engaged outside counsel to review the preparation of its affidavits to ensure they are satisfying court requirements.

A Chase spokesman said the review is expected to take several weeks, and that the company has asked that no judgments be entered in pending court cases. Chase is the third largest home loan servicer in the nation, with over $1.3 trillion in mortgages.

Florida’s court system has been deluged with a record number of foreclosures over the past few years, and Florida foreclosure defense attorneys say that the courts have generally accepted problematic documents, especially in those cases involving homeowners who have no legal representation or who fail to show up in court to argue their case.

Data provided by foreclosure online marketplace RealtyTrac shows that Jacksonville foreclosure filings rose by almost 20 percent in August from the previous month, but were down over 17 percent from the same time last year.

Foreclosure filings for the Jacksonville metro area – which includes Duval, Baker, Clay, St. Johns and Nassau counties – totaled 3,201 in August. That means that nearly one in every 185 homes in the Jacksonville metro area was in some stage of the foreclosure process, ranking Jacksonville 25th in the nation for foreclosures.

Overall, Florida foreclosure activity was down in August, but the state still ranks second only to Nevada for foreclosures with 17 percent of the national total – a 10 percent increase over July, but down nine percent from one year ago. Approximately one in every 155 Florida homes received a foreclosure notice last month, which is 2.5 times the national average.

Nationally, foreclosure filings in August were up four percent from July 2010 but down five percent from August 2009. Currently, one in every 381 American homes is in some stage of the foreclosure process. Five states – California, Florida, Michigan, Illinois and Arizona -- now account for over half of the national total of foreclosures.

If you are a Florida homeowner who is interested in learning more about how to avoid foreclosure, contact our Jacksonville foreclosure defense law firm.

Florida Congressman Alan Grayson has asked the Florida Supreme Court to halt all foreclosures involving three “foreclosure mill” law firms currently under investigation for document fraud by the Florida Attorney General’s office until that investigation is complete.

In a Sept. 20 letter to Florida Supreme Court Justice Charles Canady, Grayson wrote, “Taking someone’s home should not be done lightly. And it should certainly be done in accordance with the law.” The letter also made reference to a Jacksonville foreclosure case that was dismissed with prejudice for document fraud. In that case, Chase had attempted to foreclose on a Jacksonville home when the mortgage note was actually owned by Fannie Mae.

The “foreclosure mills” currently under investigation account for approximately 80 percent of all foreclosure proceedings in Florida. Grayson’s staff has reportedly spoken with a number of Florida foreclosure defense attorneys and foreclosure specialists, prompting the Congressman to write, “If the reports I am hearing are true, the illegal foreclosures taking place represent the largest seizure of private property ever attempted by banks and government entities. This is lawlessness.”

A week after receiving the letter, the Florida Supreme Court said it could not halt foreclosures in Florida because it has no authority under the state’s constitution or court rules to intervene in pending cases on the basis of fraud or wrongdoing. The Court referred Grayson to The Florida Bar, which handles attorney misconduct complaints.

The federal Financial Crisis Inquiry Commission, formed by Congress last year to investigate the financial crisis, said in a hearing in Miami that Florida led the nation in mortgage fraud, which is responsible for trillions of dollars in bad loans and a major contributor to the financial collapse of the housing market.

The Commission met in Miami to conduct a hearing on predatory mortgage practices, and concluded that the financial impact of mortgage fraud was more serious than most experts had estimated. In addition, because of Florida’s statue of limitations, fraudulent loans issued more than three years ago are no longer subject to prosecution.

A panel of local and national experts spent five hours testifying before the Commission. They said that inadequate regulation and unregulated financial incentives contributed to the loss of more than $1 trillion between 2005 and 2007. One risk mitigation expert said that as many as 70 percent of mortgages now in foreclosure were the result of some element of fraud.

The Mortgage Asset Research Institute has ranked Florida as #1 in the nation for mortgage fraud every year since 2006.

The Commission is scheduled to provide its comprehensive financial crisis report to President Obama by December 15. The report is being developed to help lawmakers have a better understanding of the regulatory and market forces that led to the mortgage fraud crisis.

If you are a Florida homeowner facing foreclosure and feel you may be a victim of mortgage fraud, contact a Jacksonville foreclosure defense attorney.

A South Florida GMAC Mortgage foreclosure specialist admitted in a sworn deposition that he did not verify the foreclosure documents he signed – nearly 10,000 each month – which has led GMAC to suspend sales of foreclosed homes and evictions temporarily as it reviews its procedures for note ownership verification.

In Florida and other states that have judicial foreclosure laws, lenders must provide documentation verifying that they own the mortgage note on the property being foreclosed upon. Jeffrey Stephan, foreclosure specialist with GMAC Mortgage, admitted that he signed Florida foreclosure affidavits without personally verifying that GMAC did own the mortgage note. He said he did not know what was in each file other than the homeowner’s name, that he had not inspected the contents as he should have, and that the notary who was supposed to witness his signatures was not there when he signed the affidavits.

Florida foreclosure defense attorneys say that the Florida judicial foreclosure process is being short-circuited by lenders’ flawed verification processes. Earlier this year, Pinellas County Judge Anthony Rondolino vacated a summary judgment he had granted in January in favor of GMAC Mortgage after a foreclosure defense lawyer challenged the documentation.

GMAC Mortgage said that its review of its procedures may take a few weeks or until the end of the year, and that the delay will not affect newly defaulted loans. The company did not know how many homeowners might be affected.

President Barack Obama said he will not sign the Interstate of Notarizations Act because it can make it more difficult for homeowners to challenge their foreclosures.

The White House announced that the president was sending the bill back to the House of Representatives for more discussion about how the legislation would affect the foreclosure crisis because of concerns about both the intended and unintended consequences the bill may have on consumer protections.

The bill, which the White House said would have shielded bank and mortgage processors from liability if foreclosure documents were improperly prepared, originally passed the House in April and passed the Senate with no public debate in early October. It would require state courts to accept all out-of-state notarizations as valid, including those stamped by computer – a practice that some say has been used to expedite foreclosure orders improperly.

Three major lenders have recently announced a moratorium on foreclosures due to improperly prepared documentation. Florida’s Attorney General is currently investigating four “foreclosure mill” law firms for impropriety, and a number of states’ attorneys general have filed suit to halt all foreclosures in their states until the documentation mess is straightened out.

In addition, the U.S. Justice Department announced that it was opening an investigation into whether the nation’s leading mortgage lenders improperly evicted borrowers from their homes.

According to the Mortgage Bankers Association, the number of seriously delinquent loans – including those in foreclosure – fell by the largest amount since the housing crisis began in 2006.

For the second quarter of 2010, seriously delinquent loans – those more than 90 days in arrears – fell to 9.1 percent, a .4 percent drop from the previous quarter.

Analysts credited the improvement to the now-expired federal tax credit on new home purchases and an increase in the number of mortgage modifications that lenders were able to extend to troubled borrowers, helping them avoid foreclosure.

However, analysts said that the number of newly delinquent homeowners increased somewhat during the second quarter, which could reverse recent improvements if the trend continues. The percentage of loans one payment behind was at 3.5 percent at the end of the second quarter, up from 3.3 percent at the end of 2009. According to the MBA, new delinquencies are tied to first-time claims for unemployment, which also rose in the second quarter.

Florida had the highest rate of loans in foreclosure at 14 percent, followed by Nevada with just over 10 percent, New Jersey with 6.3 percent and Illinois with six percent.

If you are a Florida homeowner who wants to avoid foreclosure, contact our Jacksonville Florida foreclosure defense law firm.

JPMorgan Chase has announced that it has offered over 900,000 mortgage modifications to delinquent borrowers since the beginning of 2009, and that 23 percent of those modifications resulted in a permanent change to the borrower’s mortgage.

Chase said that it offered over 263,000 modifications through the Home Affordable Modification Program (HAMP), of which 73,000 were approved and 58,500 of those approved resulted in a permanent modification to the homeowner’s mortgage.

The bank said that its own mortgage modification programs were offered to almost 347,000 homeowners, of which more than one-third were approved for a permanent modification. Chase also offered more than 304,000 modifications through Fannie Mae and Freddie Mac, but only 20 percent were approved through these programs and just 15 percent received a permanent modification.

Chase says that it has added more than 8,000 loan counselors over the past 18 months, and has counseled over 140,000 delinquent borrowers. It has 11 Homeownership Centers throughout Florida that are focused exclusively on helping homeowners avoid foreclosure. For a complete list, go here.

If you are a Florida homeowner who wants to avoid foreclosure, contact our Jacksonville Florida foreclosure defense law firm.

The State Foreclosure Prevention Working Group (SFPWG), consisting of Attorneys General representatives from 12 states (including Florida), three bank regulators and the Conference of State Bank Supervisors, has released a report that shows the number of foreclosures since October 2007 has outpaced mortgage modifications by three to one.

The study examined delinquency and loss mitigation data from the largest subprime mortgage services in the nation, which showed that servicers completed 2.3 million foreclosures since October of 2007 and 760,000 mortgage loan modifications.

The study also showed that nearly 60 percent of homeowners who are more than two months’ behind on their mortgage payments have still not participated in any loss mitigation activity like loan modifications.

However, the study also said that the predicted wave of re-defaulters has not materialized, and that those borrowers who have received a mortgage modification are less likely than expected to default again.

For those receiving mortgage modifications during 2009, the data showed that 40-50 percent are less likely to be seriously delinquent with their payments six months after the modification. More recent modifications are performing better than earlier modifications, and those modifications that reduced the capital balance of the loan significantly have one of the lowest rates of default.

If you are underwater on your mortgage and want to avoid foreclosure, contact our Jacksonville Florida foreclosure defense law firm.

While sales of existing condos were up in July by 11 percent, prices for those units dropped 20 percent and results for single family homes were even worse: both sales and prices dropped by 14 percent and seven percent respectively, according to the National Association of Realtors.

In Jacksonville, July home sales were down five percent and prices down nine percent, from $156,800 in July 2009 to $143,400 in July 2010. By contrast, condo sales in Jacksonville rose 20 percent while the median sales price plummeted by almost 40 percent, from $119,500 in July 2009 to $73,100 in July 2010.

Experts say that the expiration of the homebuyer tax credit caused a double dip in Florida’s already perilous housing market, and that the market’s eventual recovery is dependent on improvement in the state’s labor market. As more jobs become available, home sales should increase and foreclosures should decrease.

According to a real estate tracking firm – CondoVultures – there have been over 100,000 properties in south Florida that have been repossessed since the foreclosure crisis began three years ago.

In addition, the Deepwater Horizon Gulf Oil Spill is estimated to have had some negative impact on Florida’s housing market, which will not be truly known for months or even years, some coastal real estate experts say.

If you are a Florida homeowner who wants to avoid foreclosure, contact our Jacksonville Florida foreclosure defense law firm.

Several members of Bravo TV’s Real Housewives reality series have come face-to-face with the reality of a foreclosure in recent months, according to a story in the San Francisco Chronicle.

Not surprisingly, three of them are in the hard-hit California foreclosure market and star in the Real Housewives of Orange County. However, unlike many distressed homeowners currently facing foreclosure, all three of these OC housewives have a happy ending to their foreclosure stories:

Jeana Keough, who owns a 7-bedroom mansion in Orange County, got a loan modification through Chase that has helped her avoid foreclosure. She said that she is “happy to report that the system works” and that she is glad not to have to deal any more with the “crazy people coming out of the woodwork to buy my $4.5 million home for $1.3 million.”

Tamra Barney, who is in the midst of a divorce from her OC hubby, participated in a short sale of their home for $1.12 million.

Alexis Bellino also received a mortgage modification from Chase on her $4.56 million Newport Beach home, which was at the auction stage when the modification came through.

On the east coast, New Jersey housewife Teresa Guidice and her husband have filed for bankruptcy and, according to the article, the contents of their 10,000 sq. ft. New Jersey mansion will be auctioned off in October. However, she insists the home itself is safe for now, from both the bankruptcy court and foreclosure.

If you are a Florida homeowner and need more information on how to avoid foreclosure, contact our Jacksonville foreclosure defense law firm.

Local Market Monitor, a company that tracks real estate data in over 300 U.S. metropolitan areas, says that five metros in Florida could experience another ten percent drop in home prices over the next year.

The company predicts the largest fall in home prices will occur in Lakeland, where it expects to see an additional drop of 15 percent. The Orlando-Kissimmee area was next on the list, with analysts predicting a 14 percent drop over the next 12 months. Home sale prices in Orlando have dropped 37 percent since the housing crisis began in 2007.

Three other Florida metros are also predicted to experience double-digit drops in home prices over the next year. Panama City home prices are expected to drop another 13 percent, Daytona Beach prices another 12 percent and Sarasota home prices could fall another 11 percent, according to Local Market Monitor analysts.

One of the largest contributors to falling home prices in Florida has been the record number of foreclosures, which have hurt home values but have also helped to attract investors hungry for housing bargains in Florida. One Orlando Fannie Mae REO broker noted that July was his best sales month in a long time, saying that it is not only investors but also owner-occupant homebuyers who are involved in the bargain hunting.

If you are underwater on your mortgage and want to avoid foreclosure, contact our Jacksonville Florida foreclosure defense law firm.

A number of celebrities from the entertainment, sports and business worlds have not been immune from the foreclosure crisis of recent years, including:

Ed McMahon – the Johnny Carson sidekick and celebrity spokesman for American Family Publishers defaulted on a $4.8 million mortgage on his Beverly Hills mansion in 2008. A private buyer, who remains anonymous to this day, eventually rescued McMahon, who died in June 2009.

Nicholas Cage – Two Academy Awards could not stop the foreclosure process for Cage, who at one time owned a total of 15 homes. The IRS foreclosed on four of his homes and sold them to pay off $14 million in back taxes. Cage sued his former business manager, accusing the manager of “leading him down the path toward financial ruin.”

Jose Canseco – The baseball star walked away from his $2.5 million home, saying it did not make financial sense for him to keep paying the mortgage while the value continued to drop.

Veronica Hearst – The publishing heiress had to give up her 28,000 sq. ft. Florida estate after she fell $45 million into debt and was unable to keep up with the mortgage.

Victoria Gotti – The daughter of mob boss John Gotti was able to rescue her Long Island mansion from foreclosure by obtaining permission from the feds to sell other properties to pay off her loans.

If you are a Florida homeowner and need more information on how to avoid foreclosure, contact our Jacksonville foreclosure defense law firm.

As midterm elections near, election officials are becoming more concerned that the number of foreclosures around the country will have homeowners and renters facing complications at the polls, according to a story in the New York Times.

Voter eligibility is tied to a home address, and with three million foreclosures looming for 2010, that is a lot of potential voters confused about where or even if they can vote. The Fair Elections Legal Network has released a report on the voting challenges faced by victims of foreclosure and the processes necessary to avoid disenfranchisement. In Florida, you can vote using a new address if you fill out a form swearing to that new address on the day of the election.

Advocacy groups who work hard to get out the vote are concerned that foreclosure victims will not make voting a priority come November. Political parties have also been accused of using foreclosure lists to challenge voters – in 2008, the Obama campaign filed a lawsuit in federal court to prohibit the Michigan Republican Party from doing just that.

A Fair Elections Legal Network spokesman said that the issue has not been well publicized, and that most victims of foreclosure probably do not know their rights when it comes to voting. Some states have already said they planned to launch informational campaigns to educate voters and poll workers.

If you are a Florida homeowner and need more information on how to avoid foreclosure, contact our Jacksonville foreclosure defense law firm.

The U.S. Department of Housing and Urban Development (HUD) has announced an “unprecedented” agreement with top lenders to offer selected state and local governments as well as nonprofits a “first look” at purchasing foreclosed homes before those properties are offered to private investors.

According to the HUD announcement, the National First Look Program is designed to give communities participating in HUD’s Neighborhood Stabilization Program an exclusive opportunity to purchase bank-owned properties so the homes can be rehabilitated to be resold or rented, or in some cases demolished.

Communities hard-hit by foreclosures that received funds from the Neighborhood Stabilization Program to purchase homes have found themselves in stiff competition with private investors for bank-owned properties, which have hampered their ability to stabilize neighborhoods. Lending giants Fannie Mae and Freddie Mac will standardize the acquisition process for NSP participating communities that provides them with an exclusive opportunity to purchase foreclosed homes.

Many private lenders – including Bank of America, Chase, Citi, Wells fargo, U.S. Bank and others – are also participating in the new program, which will also provide NSP participants with the opportunity to purchase bank-owned property at a discount. NPS grantees can use NSP funds for these purchases.

If you are a Florida homeowner and need more information on how to avoid foreclosure, contact our Jacksonville foreclosure defense law firm.

At a Federal Reserve conference in Washington, D.C., Federal Reserve Governor Elizabeth Duke said that she is in favor of financial institutions promoting the rental of homes undergoing foreclosure to help stabilize communities hit hard by the housing crisis.

According to a Bloomberg report, Duke said that “It is not sufficient to do things the way we have always done them” given current economic conditions, and that a rental option makes sense, particularly at a time of high unemployment.

Duke said that the redevelopment strategies for high foreclosure rate neighborhoods should include lease-purchase as well as converting owners to renters in order to avoid vacancies. She noted that while the housing crisis was rooted in bad loans, a slow economic recovery and high unemployment is hindering a housing recovery and lenders must pursue opportunities to keep homes occupied until the housing market starts to recover.

Last month, the Mortgage Bankers Association reported that early mortgage loan delinquencies rose in the second quarter for the first time in almost a year, even though the inventory of homes in foreclosure and seriously delinquent mortgages declined slightly.

If you are a Florida homeowner and need more information on how to avoid foreclosure, contact our Jacksonville foreclosure defense law firm.

A major feature story in the New York Times on Sept. 4 provides a telling insight into the mess that is the Florida foreclosure process, and is a true testament to the necessity of having a Florida foreclosure defense attorney involved from the beginning of any homeowner’s foreclosure proceeding.

The gist of the article is this: Since all foreclosure proceedings must go through the Florida courts, the housing crisis that hit the state so hard has resulted in an enormous backlog of cases. To streamline the process, the Florida courts created foreclosure divisions throughout the state, bringing on retired judges to wade through the backlog.

While well intentioned, this has resulted in many cases getting short shrift in terms of lenders providing proof that they truly own the loan for which they are trying to foreclose – which, under Florida law, they must do. Horror stories ensue of homeowners and their foreclosure attorneys who had documentation to prove that the lender trying to foreclose did not own the note, only to have the judge still allow the foreclosure to go through.

Florida’s Attorney General is currently investigating three lender law firms that he believes are “foreclosure mills”, which have falsified documentation in order to speed the foreclosure process. When combined with a judicial apparatus that exists only to speed the foreclosure process, the potential for homeowner abuse is enormous – and there is much anecdotal evidence to indicate that this is what is happening.

If you are a Florida homeowner facing foreclosure, do not allow your rights to be trampled. Contact our Jacksonville Florida foreclosure defense law firm for help.

A growing number of housing market and economic analysts are calling on lawmakers to stop trying to prop up the housing market and “let the free market do its thing,” according to a Sept. 5 article in the New York Times.

Since 2008, a number of programs designed to help homeowners avoid foreclosure and buttress the ailing housing market have failed to do either. The homebuyer tax credit briefly stimulated sales, but existing home sales fell into the dumper after the tax credit expired in June. July home sales were down 30 percent – and it now takes a year on average to sell a home.

Some economists are arguing that letting the housing market crash will further depress home prices, which will attract an influx of buyers. However, there is a lot of pain still to be felt by one group if this were to happen: existing homeowners, who have already seen the value of their homes decline by an average of 30 percent.

And, some argue, the more pain that homeowners feel, the less likely they are to spend – and any economic recovery is dependent on consumer spending.

With the federal government now on the hook for guaranteeing the majority of American mortgages through Fannie Mae and Freddie Mac, the likelihood of “doing nothing” is probably less than free marketers are hoping for.

The U.S. Department of Housing and Urban Development (HUD) has sent another $208 million to Florida as part of a third round of funding for its Neighborhood Stabilization Program (NSP) to help city and county officials purchase and renovate abandoned houses and offer financial assistance to low and middle income homebuyers.

Florida has received more HUD NSP funds than any other state. The latest round of funding includes $11.5 million for Orange County, $7.1 million for Duval County, $4 million for Seminole and $3 million each for Brevard, Lake and Osceola counties and the city of Orlando.

HUD said the funds are targeted to communities with high foreclosure activity to combat abandonment and blight in those communities. The funding was made available through the Dodd-Frank Wall Street Reform and Consumer Protection Act that was passed by Congress and signed into law by President Obama earlier this summer.

State and local governments can use NSP funds to acquire land and property, demolish or rehabilitate abandoned properties. NSP funds can also be used to provide down payment and closing cost assistance to low- to moderate-income homebuyers.

In addition, cities and counties can use NSP funds to create “land banks” to assemble, temporarily manage, and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re-use or redevelopment of urban property.

Duval County is currently slated to receive more than $10.6 million of the $317 million the Florida Housing Finance Corp. is making available to Florida cities to help fight foreclosure.

Florida Housing ranked each Florida county in three tiers; Duval County is a Tier 1 county, which means that it has more than two percent of the weighted share of seriously delinquent loans in Florida.

There are a total of 16 counties on the Tier 1 list, including Miami-Dade, Broward, Palm Beach, Orange, Lee, Hillsborough, Pinellas, Saint Lucie, Duval, Brevard, Volusia, Sarasota, Osceola, Collier, Polk and Pasco. These counties will share a pot totaling $285,602,580 for programs that help homeowners avoid foreclosure.

In late June, the U.S. Department of Treasury approved Florida Housing’s HFA Hardest-Hit Fund Mortgage Intervention Strategy to help unemployed and underemployed homeowners keep their homes. Florida Housing has issued a RFQ for Housing Counseling Agencies to implement the strategy, which can be found here.

Treasury also required Florida Housing to choose a pilot site for the Mortgage Intervention Strategy before the entire program could be rolled out statewide. The pilot site will be Lee County, which is considered the state’s foreclosure crisis epicenter. The pilot is expected to begin in mid-to-late August and continue for 60-90 days prior to full implementation of the program statewide.

• Lender must evaluate a borrower’s loan modification eligibility under HAMP and make the determination that the borrower is ineligible before going to foreclosure;


• If foreclosure is already underway, a foreclosure sale cannot occur until the lender has determined that a borrower is ineligible under HAMP;


• Lender must give a borrower 30 days to respond to HAMP “non-approval” before conducting a foreclosure sale;


• Lender must provide a borrower’s foreclosure attorney certification in writing that the borrower is ineligible for HAMP before proceeding with a foreclosure sale.

Data from the Miami Association of Realtors shows that, contrary to national trends, pending home sales in Broward County rose by 17 percent in August compared with the same month one year ago.

A pending sale is when a contract has been signed but the transaction has not yet closed. Pending home sales figures included single family homes and condominiums.

According to REO Insider, South Florida market conditions are strengthening as the rest of the nation continues to struggle, primarily due to the large concentration of international buyers in the Miami and Ft. Lauderdale areas. According to the Miami Association of Realtors, an estimated 60 percent of sales in August involved a foreign buyer.

Condominium sales in Broward County were higher than single family home pending sales in August, where there were 4,350 units pending sales compared with 3,495 single family homes. Pending condominium sales in Broward were more than 27 percent higher in August of this year than they were at the same time last year.

Nationally, pending home sales have been impacted significantly by the expiration of the homebuyer tax credit. The National Association of Realtors said that its pending home sale index declined in June by 30 percent and in July by 19 percent compared with the same periods one year ago.

If you are a Florida homeowner and need more information on how to avoid foreclosure, contact our Jacksonville foreclosure defense law firm.

According to data from mortgage analytics firm CoreLogic, almost 40 percent of American subprime mortgages are delinquent by at least 60 days – of that number, 35 percent are over 90 days past due, 13 percent are in foreclosure and nearly four percent are bank-owned.

CoreLogic reported to HousingWire.com that almost 2.4 million subprime mortgages are still actively delinquent, which is down 12.5 percent from one year ago.

However, what may be of more concern is the data showing that almost 6.5 million prime mortgages are also 60 days delinquent, and are showing no significant decline. In addition, foreclosures on prime mortgages are growing, and are now over two percent of the total.

While subprime mortgages got the lion’s share of attention in the past few years, they represent only 5.4 percent of the total active loan market. Prime loans are the dominant loan type at more than 40 million. In terms of sheer numbers when it comes to delinquent mortgage loans, there are 6.4 million delinquent prime loans as compared with only 950,000 delinquent subprime loans.

This has led CoreLogic senior economist Mark Fleming to say that when it comes to economic policy regarding decreasing delinquent mortgages, lawmakers should be looking at what kinds of loans people have – and focusing law toward the prime space.

The U.S. Treasury Department has added $2 billion to double the size of its Hardest Hit Fund in an effort to help unemployed homeowners avoid foreclosure.

According to a story in the New York Times, the Department of Housing and Urban Development will be drawing on $1 billion provided to it by the new financial overhaul legislation to work with local aid groups to provide interest-free bridge loans to distressed borrowers.

The Obama administration, acknowledging that the foreclosure crisis is far from over, said the new funds are needed to supplement existing programs that are already helping homeowners avoid foreclosure.

Government officials noted that while the housing market usually helps lead the U.S. out of a recession, it is holding the recovery back this time. While interest rates are at historic lows, unemployment remains high and unemployed homeowners are being squeezed out of their homes by falling values and an inability to keep up with mortgage debt.

Florida will receive an additional $235 million in federal aid and was one of the first states to benefit from the Hardest Hit Fund when it distributed over $1.5 billion to the five states hit hardest by the foreclosure crisis.

A recent feature story in the Florida Times-Union details how the jump in distressed home sales has adversely impacted the Jacksonville housing market, dragging down property values while also helping some homeowners avoid foreclosure.

According to the Northeast Florida Association of Realtors, distressed home sales are more than 40 percent of all closings. Historically, distressed sales have accounted for less than 10 percent of the market.

Distressed sales include short sales, foreclosures and bank-owned, or REO, sales.

This leap has dragged down median selling prices for the entire First Coast area, which includes Clay, Duval Putnam, Nassau and St. Johns counties, where the distressed sale median price dropped by almost 30 percent in the last two years.

One local housing expert says that until home values recover, the market will not return to normal. Even though sales are up in the past few months, those sales are largely to investors who are taking advantage of a depressed market to buy cheap real estate.

If you are a First Coast resident who is facing foreclosure, there are options available to you. To learn more about foreclosure defenses, contact our Jacksonville foreclosure law firm.

The July Foreclosure Report from RealtyTrac is out, and Florida still has the third highest foreclosure rate in the nation, with one of ever 171 Florida homes receiving a foreclosure filing notice in July 2010.

Foreclosure filings include default notices, scheduled auctions and bank repossessions. Nationwide, these rose four percent over the previous month but declined ten percent from one year ago.

Florida accounted for 16 percent of the nation’s foreclosure filing total, with 51,557 properties listed. The top 10 Florida counties and their foreclosure filing totals for July are:

1. Miami-Dade – 7,107
2. Broward – 6,471
3. Lee – 3,958
4. Palm Beach – 3,759
5. Orange – 3,628
6. Hillsborough – 2,804
7. Duval – 1,839
8. Polk – 1,687
9. Pinellas – 1,670
10. Brevard – 1,512

In addition, the Cape Coral-Fort Myers metro area suffered one of the largest monthly increases in Florida foreclosure filings, which were up 21 percent there from the previous month.

July also marked the 17th consecutive month that foreclosures in the U.S. exceeded 300,000. New default notices declined for the sixth straight month, but were offset by a near-record level of bank repossessions during the month.

If you are a Florida homeowner facing possible foreclosure, contact our Jacksonville, Florida foreclosure law firm.

A CNNMoney.com report says that a number of U.S. condo markets, including Florida, are experiencing units priced “lower than a Toyota Corolla”, selling at or even below $25,000.

And while median home prices have fallen over 20 percent nationwide in the past four years, condo prices have fallen even more. According to the National Association of Realtors (NAR), condominium prices have declined almost 25 percent since 2007.

NAR reports that in Miami, condo prices have plummeted by 65% from where they stood in 2007. And, the article notes, prices for individual units are down even lower, like for a Deerfield Beach, Florida, unit that was recently listed for $25,000, a drop of almost 80 percent from its purchase price five years ago of $115,000.

Investors are beginning to snap up these bargains, and many of them are coming from outside the United States.

A recent Jacksonville Business Journal article noted a new flurry of purchase activity in Northeast Florida by international buyers, attracted by coastal property that is selling for sometimes as much as half of that in South Florida.

NAR says that buyers from Canada, Mexico, the United Kingdom, Hong Kong and China are the most active groups buying residential real estate in the U.S. According to their latest statistics, foreign investment in U.S. residential real estate the last year was around $907 billion.

If you are a Florida resident who is facing foreclosure, there are options available to you. To learn more about foreclosure defense, contact our Jacksonville foreclosure law firm.

Analysts for Capital Economics and Moody’s Investors Service say that both home sales and prices are still falling, and the U.S. housing market has not seen the bottom yet for both.

In its U.S. Housing Market Monthly Report, Capital Economics said that the number of pending home sales is down 32 percent following the expiration of the tax credit and that existing sales will follow this trend as soon as mortgage agreements are finalized on those tax credit home sales.

Moody’s has said that the odds are now one in four that a double-dip recession will occur, and if it does, housing prices may fall another 20 percent before stabilizing in 2012.

The Capital Economics report says that the housing market is currently experiencing excess housing inventory, and recorded a record high 11 percent homeowner and vacancy rate in the second quarter of 2010. It said that new home starts are also contributing to the excess housing supply.

Moody’s predicts that home sales and residential construction will be up slightly by the end of the year, while housing prices will depreciate “a bit more.”

If you are a Florida homeowner facing possible foreclosure, contact our Jacksonville, Florida foreclosure law firm.

Abuses of the Florida foreclosure process by so-called “foreclosure mill” law firms has led the Florida Attorney General’s Economic Crimes Division to expand its inquiry into the actions of several more law firms in Fort Lauderdale, Tampa and Plantation.

An article in the Sarasota Herald-Tribune recently outlined several examples of how the flood of foreclosure filings in Florida has led to abuses throughout the system, with many properties being unjustly taken:

A Pasco County homeowner’s attorney discovered that a court document giving possession of the mortgage to Wells Fargo had apparently been backdated, leading the judge to throw out the case and ruling that the law firm involved engaged in “an intentional effort to mislead the defendant and the court.”

Two law firms representing two different banks filed for foreclosure on the same property in Palm Beach County using the same mortgage note.

Attorneys for homeowners in Palm Beach County found numerous instances where two of the law firms being investigated by the Attorney General’s office had signed mortgage assignments that pre-dated the start of the notary’s commission, making them clearly fraudulent.

Many Florida foreclosure defense attorneys have similar stories, which is why it is important for homeowners facing foreclosure to go to court to protect their rights. For more information, contact our Jacksonville Florida foreclosure defense law firm.

According to the National Association of Realtors, condominium prices in the Jacksonville area suffered the largest drop – 42 percent -- among 61 U.S. metro areas during the second quarter of 2010, compared with the same period one year ago.

The median price for Jacksonville condos went from almost $127,000 in the second quarter of 2009 to $74,200 this year. However, the severe drop in prices also attracted bargain hunters – condo sales rose 90 percent year-over-year, according to the Florida Association of Realtors.

One realtor noted that the reason for the large drop was the increased number of foreclosures and short sales on top of a market glut of condominium units that were built during the 2005-06 real estate boom.

Comparatively, Jacksonville single family home prices are more stable, dropping by only nine percent during the second quarter, from $160,300 to $145,100. Sales volumes for single family residences rose 33 percent during the second quarter of 2010, from 3,054 in 2009 to 4,073 this year.

According to Zillow.com, a real estate data aggregator, almost half of Jacksonville condos and single family homes are underwater on their mortgages, meaning more is owed on the mortgage than what the property is worth.

If you are underwater on your mortgage and want to avoid foreclosure, contact our Jacksonville Florida foreclosure defense law firm.

Greenfield Advisors, a Seattle-based company that provides real estate valuation and advisory services, has launched a website -- www.gulfspillvaluations.com -- that allows property owners who have potentially been impacted by the Gulf oil spill to get information on the impact to their property values.

The company said that the new site allows users to identify their property and get a report immediately that shows any projected decrease in value. The report also provides information on the methodology used to determine the value. They suggest that property owners use the report to file with any claim documents they may plan to send to BP asking for compensation.

According to an article at REO Insider, it is estimated that 44 counties in the Gulf region, including Florida, Alabama, Louisiana, Mississippi and Texas, have been impacted by the Gulf oil spill.

Earlier this month, CoreLogic projected a potential loss of $3 billion in property values for residential real estate along the Gulf Coast.

Greenfield says that is uses tax assessor records to calculate a “pre-incident” valuation, and then determines the decrease in value using several proprietary techniques they have used in the past for events like Hurricane Katrina and the Exxon Valdez oil spill.

If your property value has decreased to a point where you are in danger of foreclosure, contact our Jacksonville Florida foreclosure defense law firm.

Bank of America announced that its total number of permanent mortgage loan workouts under the government’s Home Affordable Mortgage Program (HAMP) increased almost six percent in July.

HAMP was launched in March of 2009 and provides lenders with incentives to modify loans for those homeowners who are on the verge of foreclosure. Bank of America said it converted over 4,300 trial loan modifications into permanent modifications last month, and has completed another 100,000 permanent modifications via its own programs as well.

For distressed borrowers who are found to be ineligible for permanent loan modifications, either through the HAMP or its own programs, Bank of America said it is launching a new cooperative short sale program as an alternative to foreclosure.

Under the new short sale program, Bank of America will waive deficiencies for pre-screened borrowers and assign a short sale specialist to work with the homeowner and their real estate agent to market the property for up to four months.

Once the property is sold, the bank will provide the former homeowner with a $3,000 relocation fee. If the property does not sell, the bank will accept a deed-in-lieu of foreclosure to satisfy the mortgage.

Bank of America says it is targeting the new short sale program to homeowners in Florida, California, Nevada and Arizona.

An article in the St. Petersburg Times profiled Pasco-Pinellas Circuit Court Judge Wayne Cobb, who came back from retirement to help clear the backlog of foreclosure cases currently clogging Florida courts.

Judge Cobb estimated that in his 20 years on the bench prior to his 2008 retirement, he probably heard no more than a dozen foreclosure cases. Today, he clears up to 100 cases a day.

And he has a word of advice for homeowners facing foreclosure who want to keep their homes: get aggressive.

According to the article, Judge Cobb sits in a hearing room and takes each case one by one. He uses a speakerphone to talk to the bank’s lawyer. Usually the homeowner doesn’t even show up. And if that is the case, then he has no choice but to give the home back to the bank without a trial. He sets an auction date and case closed.

If a borrower does show up to object, Judge Cobb listens and while he has no authority to help homeowners get a new loan, he does usually set a sale date of 90 to 120 days out to give them more time to find a solution.

He says he always tells borrowers that they have to be aggressive in seeking a solution if they want to keep their homes: “The squeaky wheel gets the grease. I try to tell them, you really got to squeak.”

If you are a Florida homeowner who wants to avoid foreclosure, contact our Jacksonville Florida foreclosure defense law firm.

Real Estate Disposition Corp. (REDC), one of the country’s largest real estate auction companies, conducted a six-day, eight-city auction series across Florida during the first week in August, which featured 1,500 new foreclosure properties for sale.

So far in 2010, REDC has auctioned 2,550 foreclosures in Florida for a total of $125 million. According to the company, the August auction was one of the largest foreclosure auctions in history. Company officials said that the first four days of the auction generated $31.4 million in sales from events held in Orlando and Miami. The auction also visited Jacksonville, Tampa, Fort Myers, Ocala, Melbourne and Sarasota.

According to an REO Insider article, more than 50 banks, investors and financial institutions have properties included in the Florida auction. These properties included homes that were active listings as well as those selected to go straight to auction following foreclosure repossession.

In a press statement, an REDC spokesman said, “There are amazing properties that will be in these auctions — properties that just became available. They include million-dollar and half-million-dollar mansions and homes that homebuyers will be purchasing for as much as 50-60% less than the properties’ previous high value.”

Are you a Florida homeowner who is currently facing foreclosure? Contact our Jacksonville foreclosure defense law firm for help.

Lending giant Fannie Mae has launched a new website – www.KnowYourOptions.com -- to help financially distressed homeowners learn more about possible alternatives to foreclosure.

The new website is available in both English and Spanish, and features calculators to help borrowers understand different alternatives to foreclosure, including refinancing, repayment, mortgage modification and forbearance.

The website also provides information on Fannie Mae’s Deed-for Lease program, which allows homeowners to stay in their homes by becoming renters, as well as financial forms, checklists and information for borrowers on how to contact their mortgage servicer.

According to the Fannie Mae press release on the new website, key features of the site include:

• An interactive Options Finder to assist borrowers in identifying options that may be appropriate for their circumstances;
• Calculators to help borrowers understand how many of the options work;
• Videos featuring real homeowners talking about the solutions they found to help, as well as housing counselors who provide advice on foreclosure prevention;
• A virtual assistant that guides homeowners through key areas of the site; and
• Tools that help borrowers prepare for contacting their mortgage company or housing counselor.

If you are a Florida homeowner currently facing foreclosure, one of the most helpful tools is discussing your situation with a Florida foreclosure defense attorney.

A foreclosure mediation program that helps homeowners meet with their lenders face-to-face to try to work out a loan modification or other way to help prevent foreclosure is expanding in Northeast Florida, according to the Florida Times-Union.

A foreclosure mediation program is already in place for the Fourth Judicial Circuit, which includes Duval, Clay and Nassau counties, and is being administered by the Jacksonville Bar Association. According to program statistics, there are currently over 500 homeowners participating in that program.

Another foreclosure mediation program was launched in July for the Seventh Judicial Circuit, which includes St. Johns, Flagler, Volusia and Putnam counties.

Any homeowner facing the foreclosure of a primary residence is eligible to participate in the foreclosure mediation program. The first step in the program is mandatory credit counseling for the homeowner, which is being administered by Jacksonville Area Legal Aid. Homeowners meet with a counselor to go over their household budget and to ascertain if they are available for any of the federal mortgage modification programs.

Following that, homeowners then meet with their lenders and an impartial mediator to negotiate a mortgage modification, short sale, deed in lieu of foreclosure or any other options. If no compromise can be reached, foreclosure proceedings will continue, since lenders cannot be forced to accept a compromise.

A rare Superman comic book found while a family was packing up their foreclosed home is estimated to fetch up to $250,000 when it goes to auction later this month, and will save the family’s home from foreclosure.

The family, who lives in the southern U.S. and spoke to ABC News on condition of anonymity, said the home that had been in their family for over 50 years. It was in the process of being foreclosed on by their lender because of missed payments on a second mortgage they took out to start a new business, which failed in the bad economy. As they were packing their belongings, they went to their basement and began sifting through old boxes, trying to find packing boxes, when they stumbled on several comic books.

One of those turned out to be a rare Action No. 1 comic from 1938, the first to feature Superman, which originally sold for a dime. Last week, the family received a rating on the comic of 5.0 VG (very good)/Fine rating, and will auction their find on ComicConnect.com beginning Aug. 27. It is estimated to sell for up to $250,000.

A ComicConnect.com spokesman said there are estimated to be only 100 copies of Action Comics No. 1 in existence, of which only a few are in good condition. In the last 18 months, seven copies have been discovered. Earlier this year, copies sold for $1 million and $1.5 million; another copy sold for over $300,000 last year.

According to foreclosure statistics for the first six months of 2010 just released by RealtyTrac, the Jacksonville metro area ranks 26th on a list of U.S. cities with the highest number of homes in foreclosure. With one of every 39 homes in some stage of the foreclosure process from January to June, the foreclosure rate in Jacksonville is almost 13 percent higher than for the same time period one year ago.

However, the Jacksonville foreclosure rate is actually down eight percent from the end of 2009.

The #1 market for foreclosures continues to be Las Vegas, where one in every 15 homes is in foreclosure. However, Florida had a total of 12 cities in the Top 30 and continues to be second only to California in the total number of homes statewide that are in the foreclosure process.

The 12 Florida cities in the top 30 of 206 U.S. metro areas from the RealtyTrac report and their rankings were:

2. Cape Coral-Fort Myers
8. Orlando
10. Miami
13. Naples
15. Daytona
16. Port St. Lucie
17. Lakeland
18. Palm Bay-Melbourne-Titusville
20. Tampa
23. Sarasota-Bradenton-Venice
24. Ocala
26. Jacksonville

A new study has found that a federal program launched two years ago – the Neighborhood Stabilization Program (NSP) – has only used about one-quarter of the $541 million granted to the state of Florida for programs to prevent foreclosures, and the remainder must be spent by the end of September or be returned to the federal government.

The study was commissioned by the Miami Workers Center, and found that the Miami-Dade NSP has only spent a fraction of the $62 million it was given to purchase homes and provide down payment assistance to home buyers.

In fact, the study found that only $5,146 of a $3.75 million budget for down payment assistance had been spent as of the end of April, and only 29 single-family foreclosures had been purchased out of the 50 that had been identified.

Accordingly, the Miami-Dade NSP has changed its strategy from buying single-family properties to using the federal funds to purchase multi-family complexes. Its director says that the money allocated to Miami-Dade should be spent by the September deadline.

The study showed that Florida’s NSP programs have faced a number of challenges, including complex federal requirements, the lack of available credit for low income home buyers and an influx of cash investors competing for Florida foreclosure properties.

A survey of judges by the American Bar Association has found that more people are representing themselves in court and doing a pretty poor job of it, according to a story in the Washington Post about the ABA survey.

The economic downturn that has created a huge increase in foreclosure filings, bankruptcies and domestic relations disputes is also responsible for more people deciding they cannot afford legal representation.

However, almost two-thirds of the judges surveyed said that those who show up in court without a lawyer are negatively impacted. Judges said the most common errors made by the self-represented included failure to present necessary evidence, procedural mistakes, ineffective witness preparation and failure to adequately object to evidence.

In addition, most judges surveyed said that those who choose to represent themselves stress the court system and slow the legal process.

The survey also found a decrease in the availability of legal representation traditionally provided by civil legal aid programs, also believed to be a result of the economic downturn. Many programs have had their funding dry up in the past two years, leaving those who need but cannot afford legal representation high and dry.

A new study from an economist at the Massachusetts Institute of Technology and Harvard University researchers says that a foreclosure reduces the value of a house by 27 percent, on average.

The study entitled Forced Sales and House Prices by Parag Pathak, an MIT economist, and Harvard researchers John Campbell and Stefano Giglio will be published in an upcoming issue of the American Economic Review, and concluded that a foreclosure has a much larger negative impact on the value of a house than either a forced sale as the result of bankruptcy or an owner’s death.

According to Pathak, a bankruptcy sale drops the value of a home by an average of three percent, while a sale as the result of the owner’s death can reduce a home’s value by five to seven percent.

Using data on home sales in Massachusetts for the past 20 years, the study also showed that a foreclosure drops the value of neighboring homes by an average of one percent. Not surprisingly, foreclosure discounts are larger for lower priced properties in distressed neighborhoods, which the authors conclude is because the foreclosing lenders are incentivized to accept bigger discounts when they face greater fixed costs of home ownership that are probably related to vandalism.

The number of homes for sale or in jeopardy of foreclosure is so high that many economists are predicting home prices will continue to deteriorate well into next year, and it may be a decade before prices recover to their peak level of 2006.

According to the Associated Press, analysts’ predictions that home prices may have reached their low point earlier this year have proven to be untrue and they now think the bottom may be another year away.

Moody’s Analytics predicts that housing prices will drop another 10 percent in already hard hit cities like Phoenix, Las Vegas and Miami over the next 12 months, and that other major metropolitan areas – including Tampa, Los Angeles, New York, San Francisco, San Diego, Denver, Detroit, Minneapolis, Cleveland and Washington, D.C. – will see prices decline another two to eight percent over the next year.

The rising rate of foreclosures and a glut of homes already on the market are the main reasons for the predicted decline. Miami currently has the highest level of delinquent mortgages in the country with nearly 25 percent of borrowers who have missed at least three months of mortgage payments. Four other Florida cities – Cape Coral, Ft. Lauderdale, Naples and West Palm Beach – also have a high level of mortgage delinquencies, currently around 15 percent.

The Federal Trade Commission announced that it has banned eight companies and individuals from selling mortgage modification or foreclosure relief services to consumers for deceptive advertising practices.

The FTC has also ordered the eight firms and individuals to return almost $30 million in fees they had collected from clients. To date, the FTC has brought a total of 29 cases against mortgage relief servicers who falsely advertise to consumers that they can provide mortgage relief and prevent foreclosure in exchange for large, up-front fees.

The following defendants were named in the FTC settlement:

Federal Loan Modification Law Center – Steven Oscherowitz was ordered to pay a $11.5 million judgment, representing the amount he charged consumers for a so-called “federal loan modification program.”

Loss Mitigation Services dba Direct Lender or DirectLender.com – Dean Shafer, Marion Anthony “Tony” Perry and Bernadette Perry were ordered to pay a $6.2 million judgment for allegedly misrepresenting themselves as affiliates of the consumer’s lender or mortgage servicer and for falsely promising a refund if they failed to secure a mortgage modification.

Hope Now Modifications – Salvatore Puglia and Nicholas Puglia were ordered to pay a $5.3 million judgment for falsely claiming they could obtain mortgage loan modifications and for misrepresenting an affiliation with the Hope Now Alliance, a free federal homeowner assistance program.

Foreclosure homes accounted for 31 percent of all residential sales in the first three months of 2010, according to a report just released by RealtyTrac, the online marketplace for foreclosed properties.

In its first U.S. Foreclosure Sales Report, the average sale price of foreclosed properties was almost 27 percent below that of homes not in the foreclosure process.

Florida was one of eleven states where foreclosure sales accounted for at least one-third of all residential sales in the first quarter of 2010. Almost 233,000 foreclosure and bank-owned homes sold in the U.S. during the first three months of the year, down 14 percent from the previous quarter and down 33 percent from the first quarter of 2009.

The RealtyTrac report showed that foreclosure sales in the U.S. have increased a whopping 2500 percent from 2005 to 2009, when they accounted for 29 percent of all U.S. home sales. During 2009, more than 1.2 million home sales were properties in foreclosure.

According to the RealtyTrac website, there are currently over 11,500 properties in the process of foreclosure in Duval County, including 5,660 defaults, 1,575 auction properties, 3,470 bank-owned properties and 915 MLS homes for sale.

Continue reading "Foreclosure Sales At 31 Percent of All U.S. Home Sales in First Quarter of 2010" »

A recent New York Times article focused on the rising number of wealthy people choosing strategic default – walking away – as a foreclosure strategy, treating their home mortgage more like a poor investment in need of divestment.

According to an analysis done for the Times by CoreLogic, a real estate analytics firm, more than one in seven homeowners who have loans that are in excess of $1 million are seriously delinquent on their mortgages. This compares with one in 12 mortgage holders whose loans are worth less than $1 million.

The Times concludes that the rich are choosing to dump their properties like any other investment that has gone sour.

One example was Los Altos, California, where five properties with unpaid mortgages of more than $1 million are up for foreclosure auction. The usual rate used to be around one property every month.

The Times also noted that the delinquency rate on investment homes is now 23 percent on those with mortgages in excess of a million dollars. The rate is 10 percent for investment homes that have mortgage debt under one million dollars.

Continue reading "Jacksonville Foreclosure Attorney Notes More Wealthy People Choosing Strategic Default as Foreclosure Strategy" »

According to Foreclosure Deals, an online foreclosed property for sale listing service, approximately 31 percent of home sales in the first three months of 2010 were foreclosure properties.

Florida foreclosures were a little higher – 33 percent of home sales in the first quarter were foreclosures.

A total of 232,950 foreclosure properties were sold during the first three months of the year, down 33 percent from the total number of foreclosed homes sold during the same period one year ago. Analysts at Foreclosure Deals believe that the new figures reflect the shrinking supply of foreclosure homes for sale and an increase in the number of investors looking for good deals.

Investors have been attracted not only because of the large number of available foreclosure properties, but also by falling prices on those foreclosures. Foreclosure Deals reports that the price of a foreclosure was on average 27 percent lower than the price of a traditional sale home.

The website reported that 19 percent of all residential sales during the first three months of 2010 were bank-owned and REO properties, with an average discount of 34 percent below market value. Homes in default – or pre-foreclosure homes – accounted for 12 percent of sales. Nationally, the average discount on a foreclosure home has increased from 21 percent to 27 percent in the last four years.

Continue reading "Foreclosures Made Up One-Third of Home Sales in First Quarter" »

Approximately 3.15 percent of all Florida properties are in foreclosure, the third highest rate in the nation behind Nevada and Arizona, according to the latest foreclosure report from RealtyTrac, an online foreclosure marketplace.

Nationally, one in 78 homes received a foreclosure notice in the first half of 2010, up 8 percent from the same period one year ago. RealtyTrac reported that more than 1.6 million American homes received a foreclosure notice during the first six months of the year, and that at the current pace, more than three million properties will be in foreclosure by the end of the year.

For the third straight month, foreclosure filings declined in June by 3 percent, and are down 7 percent from June of 2009. Even with that decline, June was the 16th straight month of more than 300,000 foreclosure filings.

A report on U.S. foreclosures by Capital Economics, an independent macroeconomics firm, showed that a double dip in the U.S. housing market is beginning to materialize. The report noted that for every one house currently on the market, there are two waiting to be sold – reinforcing the prediction of a large “shadow inventory” of foreclosures.

Florida is second only to California in the highest number of foreclosures, with 277,000 properties in some phase of the foreclosure process statewide.

Continue reading "Florida Third Nationally in Rate of Foreclosures" »

As of July 1, unemployed homeowners who are behind on their mortgage payments and facing possible foreclosure can apply for relief from the Home Affordable Unemployment Program (HAUP).

HAUP assists homeowners with obtaining a forebearance from their lenders for monthly mortgage payments, either reducing or suspending payments temporarily – up to three months or more, depending on regulatory guidelines. Under this initiative announced in March, homeowners who qualify can have their mortgage payments reduced to 31 percent of their monthly household income or, in some cases, suspended for a period of three months or until they find a new job, whichever is shorter.

To qualify for HAUP assistance, homeowners must meet the following guidelines:

• Have a first-lien mortgage that was originated on or before Jan. 1, 2009;


• Have an unpaid principal balance on a single-family, owner-occupied residence that is equal to or less than $729,750;


• Have a mortgage that is in default or in imminent default.

If you are a Jacksonville homeowner and are unemployed and facing possible foreclosure, contact our Jacksonville, Florida foreclosure law firm.

For the second straight week in a row, mortgage rates have dropped to their lowest point in 5 decades. However, the housing market and broader economy may not benefit as much as you would think because many people still do not qualify for a new mortgage or they have already taken advantage of this year's low rates.

Mortgage company, Freddie Mac, reported the average rate on their 30-year fixed mortgage dropped to 4.57% - this is the lowest rate Freddie Mac has seen since it began tracking rates in 1971. However, these low rates do not seem to be helping the rate of home sales. Due to the expiration of federal tax credits for home buyers in April, the housing market has slowed. Most people have already taken advantage of the lower rates this year so buying a new home or refinancing might not be worth the cost. Still, millions of Americans are unable to take advantage of the low rates. Many home owners have seen the value of their home decrease drastically and have little or no equity. Many Americans also have poor credit scores or lack steady income to qualify for refinancing or a mortgage.

Although there have been some positive changes in the housing market there remains an increasing number of defaults in Northeast Florida on mortgages.

Continue reading "Jacksonville Foreclosure Attorney Discusses The Recent Decline In National Mortgage Rates" »

Federal economic recovery funds are helping the city of Jacksonville and other Florida cities buy foreclosed properties, fix them up and then put them back on the market.

Hit hard by the foreclosure crisis, Jacksonville is one of several cities benefitting from the U. S. Department of Housing and Urban Development’s Neighborhood Stabilization Program. The City of Jacksonville received over $26 million for use in Duval County.

According to a March 31, 2010 Progress Report produced by the City of Jacksonville Housing and Neighborhoods Department, the funds have already been committed to projects identified over the past two years.

Jacksonville has $10.5 million of the $26 million budgeted for the acquisition, renovation and resale of 72 single family homes, $8 million for multi-family homes (a 52-unit complex formerly known as the Renaissance Village Apartments will be purchased and renovated to house low income residents), $2.5 million for demolition and clearance, $1 million for redevelopment, $1 million for financing tied to property acquisitions, $500,000 for the establishment of a land banking entity to temporarily manage vacant land and $2.6 million for planning and administration.

According to the report, the City is no longer accepting applications for consideration as all HUD funds have been committed to projects already identified. A total of 10 lenders, 11 Jacksonville property developers and over 100 contractors are participating in the Jacksonville NSP program.

For more information on Jacksonville’s Neighborhood Stabilization Program, visit the NSP section of the city’s website.

Lending giant Fannie Mae announced in late June that homeowners who walk away from their mortgages – a process known as “strategic default” – would not only be barred from future loans for seven years from Fannie Mae and Freddie Mac, but would also be pursued for deficiency judgments.

In Florida, if a homeowner “walks away” from a delinquent mortgage, a lender is entitled to pursue a deficiency judgment against them for the amount between the mortgage total and what the home eventually sold for – so if you owe $400,000 and walk away, and the home is sold for $250,000, a lender could seek a deficiency judgment for $150,000 against you.

A new research report from Experian and consulting firm Oliver Wyman of 25 million consumer credit files showed that even people with high credit scores are choosing to strategically default on underwater mortgages. The study, which tracked 2009 strategic defaults, found that 28 percent of those with high credit scores had a strategic default as compared with 18 percent for the overall population in the sample group.

Experian estimates that approximately 19 percent of all 2009 mortgage defaults were strategic. The study confirmed that the hardest hit foreclosure states – particularly Florida and California – had a higher rate of strategic default than the national average.

If you are a Jacksonville homeowner facing possible foreclosure and need to know about all your options, contact our Jacksonville, Florida foreclosure law firm.

The Obama administration gave the green light – in the form of $418 million -- to the Florida Housing Finance Agency’s plan to assist up to 12,000 homeowners through its new Mortgage Intervention Strategy program.

The new program will help unemployed and underemployed Florida homeowners make up to nine months of mortgage payments; in addition, the agency will work with lenders to forgive up to another nine months of payments.

The funds are part of the federal government’s $1.5 billion Hardest Hit program – the state is one of five states to have repaid financial bailout money allocated to it to help stem Florida foreclosures. In the first quarter of 2010, foreclosed properties made up nearly 40 percent of Florida home sales.

In addition, Florida has a higher rate of unemployment, which adds to the distress many homeowners are feeling in trying to pay their mortgage. The May unemployment rate in Florida was 11.7 percent, which was over 17 percent higher than the national unemployment rate of 9.7 percent.

The FHFA said that some Florida homeowners might also be eligible for a $25,000 principal reduction that would help them qualify for a loan modification. The agency said it has targeted unemployed and underemployed Florida homeowners because they are at the highest risk for foreclosure.

If you are a Jacksonville homeowner facing possible foreclosure and need to know about all your options, contact our Jacksonville, Florida foreclosure law firm.

Foreclosing on your home may get you out of a deeply underwater mortgage, but there are some disadvantages. Your credit score is shot and it becomes more difficult if not impossible at times to obtain credit. It takes more than on-time bill payment to raise your FICO score and eventually purchase a new home. The way you default on your mortgage may depend on how long you must wait to purchase a new residence. Generally, it takes two to five years to purchase a new home for people who defaulted becomes of economic hardship such as job loss or divorce. However, walk-away defaulters face double the time. Jay Brinkmann, chief economist for the Mortgage Bankers Association, said it could take walk-aways well over seven or eight years before they are able to obtain a mortgage and purchase a home again. Brinkmann states that credit scores are only one component in the overall credit decision. A repaired credit score is highly unlikely to remove the blemish of a walk-away default because these credit scores are not good indicators of a person’s willingness to continue to pay their mortgage.

Strategic decisions to default will work against you, claims Bill Merrell of the National Association of Review Appraiser and Mortgage Underwriters. Banks are far more lenient on a person who defaulted because of reasons beyond his or her control. However, getting a loan is not impossible. Banks want to make interest payments so gambling with a walk-away might be worth the risk to banks. But, lenders may require more money up front—some as much as 30% or more down—and charge higher interest rates than those with similar credit scores. To read more on this topic see Walk-away defaulters seen in negative light by banks.

Defaulting on your mortgage and foreclosing your home is never an easy decision to make. The reasons for default play a critical role in your future purchases and credit line. Contact a Foreclosure and Bankruptcy Attorney to discuss your situation and the best available routes for you to pursue.

As if foreclosing on your home was not bad enough, some former homeowners are finding themselves still on the hook for their mortgage. Deficiency judgments occur when there is a difference between what former homeowners owed on their mortgage and what the bank sold the home for at auction. Most people are under the opinion that they negotiated the deficiency away. However, people can find themselves in this situation even when the bank has approved them to sell their home for less that it was worth. Because of the falling home prices and unforeseen circumstances—unemployment or job transfers—people are being forced to short sale or foreclose on their home and, as a result, are getting caught up in deficiency judgments.

Here is where the complication occurs—releasing title to a home does not necessarily end the debt. Generally, a mortgage has two-parts: a pledge of collateral, represented by the home, and a promise to pay off the loan. Foreclosing on your property may result in you giving up the collateral (your home) without releasing you from your liability to repay the debt under the promissory notes.

Whether banks can and will pursue deficiency judgments depend on a wide array of factors, including but not limited to: what state the borrower lives in and whether there is a second mortgage or other liens present. In the case of foreclosures, lenders can pursue deficiencies in more than 30 states; among these states are Florida, New York and Texas. California, for example, is a non-recourse state and does not allow deficiencies judgments. However, even in California, if the original loan was refinanced, some or all of it may be subject to claims. Another startling aspect of deficiencies is that the judgments do not have to be obtained immediately—lenders can wait until borrowers have regained financial stability and then swoop in. In Florida, the bank can wait up to five years to file. Once the court grants a judgment, the lender has 20 years to collect, with interest. To read more on this topic see Deficiency Judgments.

If you are pursuing a short sale, be sure you have legal representation. An attorney can ask the bank to release you from any further obligations. Also, if you have any doubts about the risks that are associated with borrowing seek legal advice.

HUD has announced that another $1 billion in federal funds will be made available to purchase and renovate abandoned homes in areas hardest hit by the foreclosure crisis. Most of the money is likely to go to Florida, California, Arizona and Nevada.

According to a report at the Huffington Post, HUD Secretary Shaun Donovan made the announcement at a media breakfast earlier this week:

Most of the money will go to benefit states such as Nevada, California, Florida and Arizona, which have been most affected by the housing crisis, providing them with funding to purchase and rehabilitate vacant homes.

The reallocated money could help Las Vegas more than any other single city, Donovan noted.

But there's evidence that the country has too many houses on the market already, the fallout of over-zealous construction during the boom years. In Las Vegas, for instance, there are 9,517 new homes sitting empty and in the first quarter alone 5,600 homes were repossessed by lenders, according to recent reporting in the New York Times. Donovan responded to this directly: "We have seen substantial improvements in many badly depressed markets... I wouldn't say Las Vegas is a good example of what's happening around the country."

Renovating and reselling houses is only a fraction of what officials aim to do with the incoming money. The administration will work with Congress on HUD's Neighborhood Stabilization Program, with additional dollars for foreclosure prevention counseling. In places like Cleveland and Detroit, Donovan is planning what he called a fundamental rethinking of land use.

"What was encouraging [in Detroit]," says Donovan, reflecting on his trip to the city last month, "was that Mayor Bing is thinking strategically." Outside-the-box initiatives include a commitment to building better public transportation, in particular a new streetcar line and maybe a commitment to rural farming.

If you are a Florida homeowner facing possible foreclosure, contact our Jacksonville, Florida foreclosure law firm.

The recent decline in both residential and commercial property values, spurred by the rapid rise in Jacksonville foreclosures, has led to a drop in taxable property values in Duval County, which means less money for area schools and the City of Jacksonville.

According to the Duval County Property Appraiser, Duval County taxable property values have dropped five percent in 2010 from 2009 values. The estimate for 2010 is $55.4 billion, down from $58.4 billion last year.

While the drop in property value saves taxpayers money in the short term, it leaves local governmental entities with “less to do more,” which increases the likelihood of a property tax rate hike to make up the shortfall.

Last year, the millage rate for Duval County and Jacksonville increased from 16.4954 to 17.3050, according to the Duval County Property Appraiser’s Office.

On a positive note, the Duval County Appraiser’s Office said that the county’s real estate base is more diverse than other areas of the state where the majority of the taxable property base is residential. When foreclosures ease and the market begins to rebound, Duval County is expected to see a quicker restoration to increases in its taxable property base.

If you are a Jacksonville homeowner facing possible foreclosure and need to know about all your options, contact our Jacksonville, Florida foreclosure law firm.

Home sales rose 14 percent last month, and many of those purchases can be attributed to attractive pricing on foreclosed homes.

RealtyTrac, a foreclosure property marketer, says that the best way to buy a foreclosure is from the bank that now owns it. These repossessions, called REOs (real estate owned by the bank), are usually in better shape than other foreclosures because the bank has had a financial interest in maintaining the property.

In addition, the bank may offer more favorable financing terms for those who want to purchase one of their foreclosure properties.

Purchasing a home that is in the foreclosure process through a “short sale” can be a slow and complicated process, requiring the potential buyer to negotiate a deal with both the owner and the lender.

Buying a foreclosure at auction is usually not a good idea for those who want to purchase a home for their primary residence. While prices are usually the lowest for homes sold at a sheriff’s auction, these houses are usually purchased “sight unseen,” which can potentially lead to big repair bills.

For more information on your rights as a homeowner in the Florida foreclosure process, contact our Jacksonville, Florida foreclosure law firm.

Included in the House and Senate versions of the new financial overhaul legislation are measures designed to halt the manipulative lending practices that enticed consumers into getting loans they could not afford and led to the current foreclosure crisis.

The legislation, which is scheduled to be signed by President Obama sometime this summer, has provisions that hold lenders responsible for the loans they approve, change the way loan officers are compensated, require lenders to give mortgages only to those who prove they can repay them, and limit the penalties that lenders can charge for those who pay off their mortgages early.

Analysts say the subprime mortgage crisis was largely brought about by lenders who evaluated only the borrower’s ability to make payments based on a low “teaser” rate. Once those rates ballooned, borrowers could no longer pay their mortgages and their homes fell into foreclosure. The new legislation would make it mandatory for lenders to assess a borrower’s ability to pay for the first five years of the loan term before approving a mortgage application.

In addition, the legislation outlaws the extra compensation for loan officers and mortgage brokers who were rewarded for putting borrowers into loans with a higher interest rate than they qualified for.

If you are a Florida homeowner facing possible foreclosure and need help, contact our Jacksonville, Florida foreclosure law firm.

Foreclosure analysts a RealtyTrac, a leading online marketplace for foreclosures, say that foreclosures will likely peak in 2011 based on improvements in default rates.

From Investor’s Business Daily:

Standard & Poor's this week launched S&P/Experian credit indexes that include mortgage payment lateness. They show "lower proportions of default each month," said David Blitzer, chairman of S&P's index committee. "It's telling me we're really squeezing out some of the worst that's been going on."

The index tracked an average default rate of 3.7% on first mortgages in April, down 6% vs. March and 31% vs. a year ago. The second-mortgage default rate, 2.5%, fell more.

Improvement in defaults "is the first positive sign" in a long while, said Rick Sharga, senior vice president at foreclosure watcher RealtyTrac, on a Thursday conference call.

"We're seeing loans stay in delinquency longer and longer before the first notice of default," he said.

The foreclosure backlog amounts to about 55 months of inventory, Sharga says, and 2011 is apt to be the peak year for foreclosure activity. He adds that lenders appear to be slowing foreclosures while they try to sell off homes they've repossessed.

"Then they will replenish that supply, if you will, by bringing new loans into the foreclosure process and proceeding with them," Sharga said.

If you are a Jacksonville homeowner who needs to know more about the Florida foreclosure laws, contact our Jacksonville, Florida foreclosure law firm.

If your lender has sent you a Notice of Default – the first step in the foreclosure process – you may be wondering what happens next. Will there soon be a knock on the door by someone who is going to throw you and your family out into the street?

Thankfully, the answer is no.

Actually, your lender probably doesn’t want to foreclose on your home and will usually take its time in foreclosing. This is not only because lenders now own way too many foreclosures, but it is also because they must spend money to maintain the property and a home in foreclosure continues to lose value.

This means that your lender may be more willing than they had been previously to negotiate with you for a loan modification, short sale or deed-in-lieu of foreclosure arrangement.

If not, and your home is scheduled for sale at a sheriff’s auction, you may still be able to get your home back since Florida has a right of redemption statue. This means that if you can pay in full the unpaid loan balance plus costs, you can reclaim your home. And even if you cannot, this still buys you some time before you have to vacate your home.

If you are a Florida homeowner facing possible foreclosure and need help, contact our Jacksonville, Florida foreclosure law firm.

A University of Arizona study released earlier this month says that many of the homeowners who are defaulting on their mortgages are doing so out of fear, anger or despair rather than making the decision based on their best financial interests.

From an article at wsj.com:

Though small—covering just 350 people—the study spotted a notable trend. Some of these people have stopped paying because they are anxious about their financial situation; others are furious that banks or the government won't help ease their load while other people are getting assistance. Hopelessness is a factor for others.

Brent White, an associate professor of law at the University of Arizona who ran the study, focused on "strategic defaults" in which a borrower who could afford to keep paying opted not to do so. That phenomenon is frequently described as a rational response by homeowners who are "underwater," owing far more than the current values of their homes.

But that isn't always the case. It depends on the cost of alternative housing and on future home-price movements, which are hard to predict. Also uncertain is how many years a borrower may need to repair a credit rating and whether the lender may try to collect any amount by which foreclosure-sale proceeds fall short of the loan balance.

Strategic defaults are becoming more common, various studies show—a Morgan Stanley report pegged them at 12% of all home-mortgage defaults in February, up from "insignificant levels" three years ago. Lenders fear borrowers who "walk away" will greatly increase the industry's foreclosure-related losses, which already total in the hundreds of billions of dollars.

If you are a Florida homeowner facing possible foreclosure and need to know about all your legal options, contact our Jacksonville, Florida foreclosure law firm.

One of the primary concerns for homeowners who are faced with foreclosure is what happens to their mortgage debt if the bank forgives it. This can happen in a traditional foreclosure or a short sale where the bank sells the property for less than the amount owed on the existing loan. In many cases the bank will issue the borrower a 1099 which tells the IRS that they have imputed income from the forgiveness of mortgage debt.

For those borrowers who are in serious financial debt, this can have a very detrimental effect on their situation. This is where the insolvency exception to imputed income from the cancellation of mortgage debt comes in handy. IRS Publication 908 offers debtors a way out of incurring imputed income for the forgiveness of mortgage debt if at the time the property was either foreclosed on or voluntarily returned to the lender they were financially insolvent (ie. debts exceed assets). Debtors who file for bankruptcy are presumed to be insolvent and the debtor’s responsibility for imputed income for the forgiveness of mortgage debt can be discharged in bankruptcy.

For more information regarding bankruptcy and mortgage debt forgiveness contact a Florida Bankruptcy Attorney in Jacksonville.

As part of the foreclosure process in Florida, all primary residences are automatically sent into mediation.

Florida is currently averaging over 350,000 foreclosures annually. Last December, the state Supreme Court issued an administrative order to all 20 circuit courts to implement a mandatory mediation program in hopes of keeping more foreclosures off the court’s docket.

Unfortunately, the state’s budget has not kept pace with the need for more judicial staff, and Florida foreclosure mediators are just as overburdened with casework as the circuit court judges.

However, the good thing about Florida’s foreclosure mediation mandate is that it forces lenders to the table to negotiate in good faith with borrowers. The lender must bring all the relevant documents to the mediation session, including an itemization of what must be paid to catch up and pay off the loan.

According to a recent article in USA Today, the 18^th Circuit Court in Brevard County has sent 317 cases to mediation and 59 of those have received a modified loan payment plan, thus staving off foreclosure.

If you are a Jacksonville homeowner who needs to know more about the Florida foreclosure laws, contact our Jacksonville, Florida foreclosure law firm.

The new U.S. Attorney General for the Southern District of Florida says that one of his top priorities will be fighting mortgage fraud.

U.S. Attorney Wilfredo Ferrer said, "There is rampant fraud in South Florida. I think that's unfortunate. It is embarrassing that we are known in some circles as the fraud capital of the country. I don't like that title."

From therealdeal.com:

Ferrer announced that Joan Silverstein has been named the chief of the division of economic and environmental crimes, which includes mortgage fraud cases.

"Lucky for me, we've got a great economic crimes section here to handle our fraud prosecutions. When it comes to real estate, housing discrimination, mortgage fraud cases, we're leading the nation [in prosecutions]. That's a good thing but it's also a bad thing because it shows we have a lot of fraud here."

Just last month, Homestead mortgage broker Yvette Valdes was indicted by a federal grand jury, charged with falsifying loan documents on two properties in Southwest Miami-Dade County. She faces up to 30 years in prison.

For more information on how to protect yourself against possible foreclosure, contact our Jacksonville, Florida foreclosure law firm.

The University of Florida’s Bergstrom Center for Real Estate Studies has released its Survey of Emerging Market Conditions for the first quarter of 2010 that indicates, “the real estate market in Florida has hit bottom and is in the process of stabilizing across most property types.”

The quarterly survey participants include Florida professional real estate analysts and investors representing 13 urban regions and up to 15 property types across the state.

With a heavy use of weather analogy, the survey characterizes the Florida real estate market as “still mostly cloudy with a few breaks in the clouds”. High unemployment and the lack of debt capital are mentioned as two current realities that cloud the state’s real estate outlook; however, respondents did note a rise in private capital from both foreign and domestic sources that continue to enter the state in search of good deals.

The survey also noted that, “life companies have increased their appetite for Florida real estate and newly formed or previously conservative community banks are being aggressive in providing capital.”

If you are a Florida homeowner facing possible foreclosure and need to know about all your legal options, contact our Jacksonville, Florida foreclosure law firm.

The U.S. bankruptcy reform of 2005 played an important role in the mortgage crisis and the current recession. When debtors file for bankruptcy, credit card debt and other types of debt are discharged—thus loosening debtors’ budget constraints. Homeowners in financial distress can therefore use bankruptcy to avoid losing their homes, since filing allows them to shift funds from paying other debts to paying their mortgages. But a major reform of U.S. bankruptcy law in 2005 raised the cost of filing and reduced the amount of debt that is discharged. We argue that an unintended consequence of the reform was to cause mortgage default rates to rise.

We estimate a hazard model to test whether the 2005 bankruptcy reform caused mortgage defaults to rise, using a large dataset of individual mortgages. Our major result is that prime and subprime mortgage default rates rose by 14% and 16%, respectively, after bankruptcy reform. We also use difference-in-difference to examine the effects of three provisions of bankruptcy reform that particularly harmed homeowners with high incomes and/or high assets and find that the default rates of affected homeowners rose even more. We find that bankruptcy reform caused the number of mortgage defaults to increase by around 200,000 per year even before the start of the financial crisis, suggesting that the reform increased the severity of the crisis when it came.

• Initial counseling for homeowners applying for a mortgage modification


• Counseling for customers who are current on their mortgage but are struggling


• Short-sale assistance for customers who cannot afford their home or don't want to stay in it

• Renters with a lease may occupy the property until the end of their lease unless the new owner intends to personally occupy the property.  If this is the case, 90 days’ notice must be given.


• Month-to-month tenants must be provided 90 days’ notice before they have to move.


• Tenants who live in areas with rent control “just cause” eviction protection cannot be evicted just because ownership changes.

• Foreclosure – an automatic stay will stop foreclosure proceedings temporarily.


• Eviction – if your landlord has already started legal proceedings to evict you, an automatic stay will not help.  But if he hasn’t, the automatic stay can buy you some time.


• Wage garnishment – automatic stays stop any wage garnishment action by one or more creditors.


• Disconnection of utilities – if a utility company is threatening to disconnect you because of nonpayment, an automatic stay will stop a disconnection for at least 20 days.

• Criminal proceedings


• Lawsuits over child support or alimony


• Some IRS proceedings


• Repayment of loans from a pension