Florida Foreclosure Defense Lawyers Blog

Recently, Florida foreclosure defense attorneys have been scrutinized for not using "sophisticated" defenses against Plaintiff banks in foreclosure actions. One of the lynchpins of this foreclosure mess is that banks have been sloppy in the documentation they rely upon in order to show they have the right to foreclose. The Notes and Mortgages submitted to Courts may not be properly endorsed, if endorsed at all. Meaning Banks cannot prove they have standing to foreclose on the home in question. The Florida 4th District Court of Appeal heard the case of Robert McLean v. J.P. Morgan and Chase Bank the week of February 8th, which addressed this very issue.

The case was brought to challenge an award of Summary Judgment for Chase Bank at the trial level (Circuit Court). The 4th DCA reversed the trial court's ruling and, concluded the Court erred in entering Summary Judgment where the record lacked sufficient evidence to show Chase had standing to foreclose at the time the lawsuit was filed. The Court noted that a crucial element in any mortgage foreclosure action is that the party seeking foreclosure MUST demonstrate it has standing to foreclose. Standing may be established by either a properly endorsed Note, an Assignment of Mortgage, or an equitable (non-physical) transfer of the mortgage prior to filing of the Complaint. The Court noted that even in the absence of a valid written Assignment of Mortgage, the "mere delivery of a note and mortgage with intent to pass title will vest the equitable interest in the person whom it was delivered" so that dismissing a Bank's complaint would be error. Thus, a party must establish standing to foreclose on the mortgage prior to the complaint being filed.

In McClean, the Assignment of Mortgage was executed three days after the case was originally filed. Thus, Chase did not acquire standing to foreclose until 3 days after the suit was initiated. There are no sophisticated defenses necessary in cases such as this one where the bank fails to prove they acquired the right to enforce the Note before filing the suit. Click here to read the full opinion: McLean v. JP Morgan.pdf

This may be the exact theory your bank is using in your foreclosure case, and one a Jacksonville Foreclosure Defense Attorney's may be easily able to identify. In order to evaluate your case, it is important to seek out the help of an attorney early on; many times, these consultations are free. Contact a Jacksonville Foreclosure Defense Attorney's today.

Unfortunately, not at all! Robo-signing has now been identified in lawsuits against delinquent credit card holders. Just like in foreclosure actions where banks and lenders are required to produce original Notes and Mortgages in order to prove they have the right to foreclose, original credit agreements and accurate payment histories must be produced in order for banks to obtain judgments against delinquent credit card holders. The falsely attested-to statements by bank document custodians submitted in courts are being referred to as "robo-testimony."

As a result, judgments already entered in favor of banks may be abated. Banks could face suits from state attorney generals or investigated by the Consumer Financial Protection Bureau. As well as being charged under the Racketeer Influences and Corrupt Organizations Statutes.

This may bring some relief to debtors, but keep in mind this discovery is still very new and there remain many unanswered questions. However, this may explain why JPMorgan Chase & Co. suddenly walked away from 1,000 debt collection lawsuits in April 2011. If your pending case was suddenly dismissed by Chase, it was likely only dismissed "without prejudice," which means the case could be refilled in the future.

The Occupy Wall Street movement that has rapidly spread across the nation has seemingly found a few new streets to occupy, all streets that have foreclosed residences or residences facing imminent foreclosure. All across the US, Occupy protestors have been "reclaiming" foreclosed homes and boarded up properties in what some are calling a "tactical shift" in the movement which has targeted the inequality in the distribution of wealth in the US.

Occupy protestors have held rallies on behalf of homeowners facing foreclosure evictions in more than 25 cities within the last month. Some observers are saying the shift of the Occupy movement has resulted out of necessity, as many Occupy groups are finding it increasingly difficult to camp in public spaces.

Jeff Ordower, one of the organizers of the "Occupy Homes" movement has stated "it is clear the fight is against the banks...so occupying space that should belong to homeowners but belongs to the banks seems like the next logical step for the Occupy movement." The events have been boisterous and echo the frustrations of the national housing crisis. Signs have popped up stating things such as "foreclose on banks, not people" and in Atlanta protestors used whistles and sirens to disrupt the auctions of foreclosed homes at the count courthouse.

If you are one of the thousands of Floridians facing a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Defense Lawyer today for a complimentary case review in order to determine what foreclosure defense options may be available to you.

On December 1,the Attorney General for the State of Massachusetts, Martha Coakley, filed a lawsuit against the five largest U.S. lending banks, Bank of America, Wells Fargo JPMorgan Chase & Co., Citigroup Inc., and GMAC, for their roles in the foreclosure crisis which has plagued the country for the last several years. This suit marks the first major legal action that has been taken against major mortgage lenders since settlement negotiations began between the nation's biggest banks and the 50 state attorneys generals in Spring 2011.

The lawsuit disappointed most of the lenders named, who have pledged to continue working towards reaching a settlement agreement with the 50 states attorneys general.. Spokesman Lawrence Grayson of Bank of America stated, "We continue to believe that the collaborative resolution rather than continued litigation will most quickly heal the housing market and help drive economic recovery." GMAC on the other hand has vowed to fight the suit in court stating, "GMAC Mortgage believes it has strong legal and factual defenses against these claims and will vigorously defend its position in court."

Nevertheless, Ms. Coakley states she had no choice but to file the lawsuit as negotiations have reached a standstill. She, and many others contend the banks have not offered any meaningful compensation while continuously insisting on extensive protection from liability for the foreclosure crises.

If you are facing a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Lawyer or a Florida Foreclosure Lawyer today for a complimentary case review to determine what potential foreclosure defenses may be available to you.

The Florida Fair Foreclosure Act, a potential bill which could potentially remove many foreclosure proceedings from state courts, may have more consequences for ordinary Floridians other than its intended effect of speeding up the foreclosure process. Florida has one of the longest average foreclosure processes in the U.S., with an average foreclosure taking 638 days in contrast to an average of under 400 days for those states which do not utilize judicial foreclosure processes.

Proponents of the Act justify their support of the bill citing the need to speed up the foreclosure process in order to strengthen the overall economy by getting foreclosed homes back onto the market more quickly. Foreclosure defense advocates point to lenders and mortgage servicers as the primary reasons the judicial foreclosure process is slow. Practices such as "robo-signing" foreclosure documents, bring suit without proof of ownership of the loan are just a few of the acts perpetrated by banks which have caused much of the delay.

If the Act is passed, it may have a significant negative fiscal impact on the state court system. In the last fiscal year, over 60% of the operating budget was derived from foreclosure filing fees. Non-judicial foreclosure systems shift the costs of initiating litigation to already financially burdened homeowners, a move which could cost homeowners and the state court system dearly.

If you are facing a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Defense Lawyer today for a free consultation to determine what foreclosure defense options may be available to you.

Jeff Barnes, a California attorney who also has an office in Boca Raton, has filed a unique Florida lawsuit against JP Morgan Chase. The filing cites Florida RICO statutes in an effort to pin Chase with a widespread pattern of misconduct. Barnes is making a claim of "nationalized fraud" by Chase because they used false and fraudulent documents to foreclose on homes, and also claimed it had the right to foreclose on Washington Mutual loans, which Chase took over in 2008.

Barnes is using the Florida Civil Remedies for Criminal Practices Act, which is the civil version of the Florida Racketeer Influenced and Corrupt Organization Act. The suit has drawn much attention and Mr. Barnes is considering adding more plaintiffs, although he does not plan to solicit for any more. However, some Florida lawyer's are skeptical as to whether this statute will actually work in fighting against the banks.

Perhaps the best thing that could come from this filing is that the suit requests Chase be barred from processing foreclosures until the case ends, which could buy time for many homeowners facing Chase foreclosures. If you are currently facing a Florida Foreclosure Lawsuit or are simply having difficulty paying a mortgage, contact < Jacksonville Foreclosure Lawyer or a Florida Foreclosure Defense Lawyer today to explore your potential legal options.

A condominium association in Miami, Florida has sued JPMorgan Chase & Co. (JPMorgan) to take control of a condo unit. The suit, filed in February 2011, alleges JPMorgan stalled foreclosing on a condo unit for four years, in an effort to not pay the HOA dues. A Miami judge in June found that JPMorgan had lost its claim to the property after allowing more than four years to pass without foreclosing on the property; allowing the owner to live in the unit for free.

JPMorgan, by stalling the foreclosure, made the other unit owners pay additional homeowner association (HOA) dues in order to make up the loss of not receiving the HOA dues owed on that unit. One unit owner said, "I find it an outrage that the bank had decided to do nothing and the other owners got stuck." The unit is now for sale by the HOA who is hoping to stale bankruptcy proceeds with the sale.

Condo associations are beginning to take matters into their own hands as banks stall more and more foreclosures. Banks, by allowing delinquent homeowners to continue to live in the property for free, are also allowing HOA dues to go unpaid. Too often delinquent homeowners are also not paying their HOA dues, which is causing major financial problems for HOAs who depend on HOA dues to continue running. HOAs are beginning to pressure banks to speed up foreclosures and take over HOA monthly dues. The extreme is forcing banks to lose their rights to the property like this Miami condominium association did.

If your HOA dues continue to increase while banks stall foreclosing on other units in your complex and you are facing foreclosure, contact a Florida Foreclosure Defense Lawyer or a Jacksonville Foreclosure Lawyer today to have your case reviewed and to determine what foreclosure defenses may be available to you.

According to the latest numbers from mortgage industry tracking company RealtyTrac Inc., the number of households that received an initial default notice, which is the first step that must be taken to begin the foreclosure process, jumped an incredible 33% from July to August. The spike represents the largest percentage increase in four years and constitutes a 9 month high.

RealtyTrac senior VP, Rick Sharga, has stated that this is the first time they have seen such a increase in default notices. While it may be an aberration, Sharga said "I think its much more likely we're seeing the beginning of a trend here." New foreclosure actions were slowed down last fall as allegations of shoddy foreclosure processes by the nations largest lenders came to light.

All to,ld, 78,880 properties received a default notice in August. While August's numbers are up, they are down 18% from the August 2010 numbers. While the foreclosure numbers are on the rise, RealtyTrac says it may be beneficial for housing recovery, as overall home prices are not likely to rebound while there are still potentially thousands of unaddressed foreclosures "hovering over the market."

If you are one of the thousands of new homeowners who have received a default notice from your mortgage company, contact Jacksonville Foreclosure Lawyer or a Florida Foreclosure Defense Lawyer today for a free consultation in order to determine what foreclosure defense options may be available to you.

In the year 2073, courts in New York will finally be able to breathe a sigh of relief: that's the year they will finally be rid of all of the foreclosure cases currently on their dockets. That is, at their current pace, it will take another 62 years for lenders to finally be rid of their current foreclosure cases!! This is the longest waiting period in the country.

Other states facing long waiting periods are New Jersey, which will take 49 years, and Florida, Massachusetts, and Illinois, all of which would take nearly a decade. This is in contrast to states that don't use their courts for foreclosure proceedings. For example, California has a 3-year waiting list, while Nevada and Colorado have 2-year lists.

Some legal authorities in Florida have suggested that banks aren't even doing anything to clear their cases. One South Florida attorney currently has 1,275 foreclosure clients; last year he had only 350. All but 75 of his current cases remain pending. J. Thomas McGrady, Sixth Circuit Chief Judge, says banks are largely to blame for the backlog. "We're here to do what we're asked ... [But] the banks aren't asking."

Banks claim the delay is due to the legal hoops and regulations in the law they have to jump through. However, this does not excuse banks from using illegal methods such as "robo-signers" to mass-produce documents. We've written before about the robo-signing scandal and how it does not seem to be completely over. If you are facing foreclosure, contact a Florida Foreclosure Defense Attorney to discuss the best legal and financial options which may be available for you.

Courts in Florida cleared greater than 200,000 of the backlogged foreclosure cases that were plaguing the system in 2010. These numbers represent a nearly 43% decline in outstanding foreclosure cases. The $6 million allocated by the Florida Legislature to establish the foreclosure "rocket docket" courts and clear the backlog but the effectiveness of the special courts have been called into question and the 2010 numbers evidence they may not have been as effective as the total number of disposed cases initially leads Floridians to believe.

Almost half of the disposed cases due disposed of due to dismissals by Plaintiff banks. Dismissals can occur for several reasons, ranging from a mutual agreement via mediation to voluntary dismissals on the part of bank. A total of 104,126 were dismissed in this fashion in 2010. Many foreclosure observers are pointing to two primary reasons for the high number of dismissals: 1) the voluntary dismissals on the part of banks due to errors or fraud in the creation of foreclosure related documents and 2) the closing of giant "foreclosure mill" the Law Offices of David J. Stern without officially withdrawing from its cases, which put thousands of cases in limbo.

The unfortunate thing that is hidden by this seeming relief from the foreclosure backlog is that most of the dismissed cases will be refiled. if you are currently facing, or will be facing in the near future, a Florida Foreclosure Lawsuit, contact a St. Augustine Foreclosure Lawyer today for a free consultation to determine what foreclosure defenses may be available to you.

In the great majority of foreclosure cases, the first mortgage holder is usually the one that brings the foreclosure action. But what about when there is a second mortgage involved? The second mortgage may file a foreclosure just to protect interest in the property, but this is a rare occurrence for several reasons.

While a second lien holder can file for foreclosure, due to the dramatic decline in home prices, only the first mortgage holder will usually get paid via any sale or auction that takes place. Since these home sales usually involve interested buyers looking for relatively cheap homes, the house usually sells for much more than is owed on the mortgage. Since there is likely not enough money to even pay off the property taxes, and potential homeowners association arrearages and first mortgage after the sale, it just doesn't usually make financial sense for the second mortgage company to initiate the foreclosure proceeding. But of course, that doesn't mean that second mortgage holders cannot or will not file a Florida Foreclosure Lawsuit.

If you are facing a Florida Foreclosure Lawsuit from the holder of the second mortgage on your home, contact a Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Defense Lawyer today to determine what options are available in your particular case.

When Chase Bank threatened to sell Mardee Jerde's home in foreclosure, Ms. Jerde's was determined to do all she could to save her home of 16 years. Sure, Ms. Jerde was having trouble making her mortgage payments, but there is a very personal and understandable account of how Jerde got to that point. An explanation Chase is unwilling to consider in granting Jerde a permanent loan modification.

In March of 2008, Marde was involved in a car accident that left her injured and unable to work. She could no longer afford her greater than $1,700 mortgage payment, so she immediately made contacted with her bank. Chase agreed to a trial loan modification, but it wasn't until July 2009 that she was able to make another payment. She made modified mortgage payments of nearly $900 until June of 2010, when Chase came knocking. They sent a letter seeking almost $50,000 in overdue payments and past due amounts.

The craziest part of all of it all is that Jerde upheld her responsibility, and sent Chase the money! She used the settlement money she received from being in the car accident to do make the payment. Chase ultimately denied her the permanent loan modification, leaving Ms. Jerde broke and with few options.

Stories like this make it appear that Chase and other banks will offer a helping hand and then immediately turn their back without upholding their end of the bargain. If you are in foreclosure talks with a bank, don't just send them money because they say it will increase the likelihood of getting a loan modification. If you are exploring the possibility of a mortgage modification with your bank, contact a Jacksonville Foreclosure Lawyer or a Florida Foreclosure Lawyer today to review the modification paperwork in order to ensure the deal is right for your individual circumstances.

What is going on in with all of the Foreclosure craziness? This has been the question for millions of homeowners dealing with the potential loss of a home right now. People have heard the horror stories of predatory lending, and the other stories of unqualified homeowners working with brokers to deceive lenders to get financed. But many mortgages fall somewhere in between, leaving big question marks in place of answers the housing market desperately needs.

As a greater number of questions are pouring in, however, searching for answers has become a daunting task. MIllions of homeowners are in a struggle to hold onto their loans while batting off multiple lenders. The problem is many of the original brokers and lending companies have since gone out of business or been the subject of criminal charges stemming from their faulty practices. Often times, the loans in question have been securitized into a mortgage-backed trust. The issue underlying this confusion is that no one knows whom the owner of the note and mortgage actually is. This is largely because of one four-letter acronym, MERS.

MERS (Mortgage Electronic Registration System), a service created to track mortgage transfers, was created in 1994. MERS replaced the old system of "walking" every important mortgage document to the County Clerk's office. With this shortcut in place, lenders were able to save millions of dollars in local recording fees and started transferring mortgages at a pace that, we would later learn, was far too much to handle. So grueling, in fact, MERS failed to properly follow state and local laws in documenting these transfers. Now when it comes time to foreclose instead of documenting each transfer, MERS allegedly signs the mortgage from the original lender to the most recent owner.Many courts are now deciding whether MERS has actual standing to foreclose.

There are things you can do to be prepared for or stave off a potential foreclosure. One of the most important is to communicate with your lender. If you are facing the prospect of foreclosure, contact a Florida Foreclosure Defense Lawyer or a Jacksonville Foreclosure Defense Lawyer today to determine what foreclosure defenses may be available in your specific case.

Much of the recent foreclosure crisis news has centered on homeowners and investors and their fight to get compensation compensation from banks due to foreclosures. But in the coming months, mortgage servicers will be undergoing drastic changes that every interested homeowner should know about. Primarily, the changes will surround the addition of thousands of sub-servicers to what has become a busy foreclosure docket.

Wells Fargo, for example, has brought its loss mitigation team up from 6,000 to 16,000 members. The bank has also dedicated a mortgage specialist to manage each modification from beginning to end, a practice heralded in the mortgage service industry as award winning and the first of its kind. Wells Fargo's endeavors include the addition of 27 home preservation centers in the hardest-hit communities around the country.

Some companies have hired even more representatives. JP Morgan Chase hired 10,100 new employees to help mitigate its increased workload. The company also plans to have 82 "Chase Homeownership Centers" since the end of Summer 2011. Bank of America has expanded its homeowner assistance team from 3,900 in 2008 to a whopping 35,000 employees by the end of this year. Bank of America also opened 23 new customer assistance centers and promises to bring that number to 40 by the end of the summer.

Working with your servicer and attending any workshops they might offer is always a good idea when behind on mortgage payments. The fact that there are more servicers available to work with you might be a great help, but it may also accelerate the foreclosure process. If you are facing a Florida Foreclosure Lawsuit and are interest in exploring your foreclosure options, contact a Jacksonville Foreclosure Lawyer or a Florida Foreclosure Defense Lawyer today.

On of the most commonly cited reasons for the nationwide housing crisis, the banks gave loans to people who were not reliable to pay back the loan. The secondary housing market boomed as the original lenders sold pools of mortgages to investor companies or credit unions, who would then in turn, collect the money from and service those mortgages. Every mortgage has a different rating on how "good" it is, which in turn, affects the rating of the overall pool of mortgages. In order to get these investor companies or credit unions to buy these large pools of mortgages, the banks were doing different things to bump up the ratings of these mortgages, which would look better to potential buyers.

Now, according to a report, two banks, JPMorgan and RBS, are being sued by the National Credit Union Administration (NCUA) for "untrue statements of material fact," or "omitted to state material facts" which is against federal and state securities laws. The NCUA claims that it would not have bought those loans had it known that JPMorgan and RBS were bumping up the ratings. NCUA has plans to possibly sue another 5-10 banks.

If you are facing a St. Augustine Foreclosure Lawsuit, contact a Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Lawyer today to determine what foreclosure defenses may be available to you.