Florida Foreclosure Defense Lawyers Blog

Defending your foreclosure can give you more days to find a resolution that is the right fit for you and your family. Despite how much time has already gone by, if you have been served with a foreclosure action, time is running and it does not stop for weekends or holidays. Once you receive that summons, you have 20 days to respond.

You probably do not buy the first pair of shoes you try on, nor are you perfectly satisfied with a new receipt the first time you make it. The same is true with finding the perfect resolution to a foreclosure. There is no one-size-fits-all remedy!

However, time is only secondary to defending your foreclosure. The main purpose of defending a foreclosure is to allow you to seek and accomplish a different way to resolve your foreclosure, such as obtaining a Short Sale, Loan Modification, or deed-in-lieu. The purpose is not to simply postpone the inevitable, you and your family having to leave your home.

Facing a foreclosure can be extremely stressful and difficult to navigate alone. Seek a competent Florida Foreclosure Lawyer or a Jacksonville Foreclosure Defense Lawyer today to help guide you through the foreclosure process and help you find the right resolution for you and your family. The initial case review is with out charge.

Townhome and condo prices in Jacksonville, Florida have fallen far quicker than prices for single family homes. According to the Northeast Florida Association of Realtors, townhomes and condos are currently selling for a median price of $67,000. That is 63% below the peak in July 2006 of $182,500. Compared to a current median price of $135,000 for single family homes which has only dropped 35% from the August 2006 peak of $210,000.

The dramatic difference in the drops of townhomes and condos compared to the drop of single family homes can be explained by the large amount of townhomes and condos built during the past decade and how quickly those prices increased, followed by a huge amount of foreclosures filed on them that put too many on the market at the same time. The problem gets worst with how difficult townhomes and condos are to sell. Many cannot be bought with a FHA mortgage or even a conventional loan. Since banks will not approve a loan in complexes with 50% percent renters, or associations fees not being paid on 15% of the units, most must be bought with cash. Buying with cash means even more renters because cash buyers are usually investors whom have excessive cash who buy the units with the intention of renting them out.

Prime examples are:
• A condo on Old Kings Road recently sold for $30,000. Four years ago it sold for $141,000.
• Off Southside on Belle Rive Blvd., a condo that sold for $165,000 five years ago went for less than $30,000.
• Two condos sold for 1/3 of what they were bought for a few years ago in the downtown Berkman Plaza.

This is just more bad news for some Jacksonville Homeowners, but there are alternatives to being "upside down." If you are currently "upside down" in your home, contact a Jacksonville Foreclosure Lawyer or a Florida Foreclosure Defense Lawyer today to see what options may be available to you.

The panel appointed to study the viability and effectiveness of the Residential Mortgage Foreclosure Mediation program has recommended that the Florida Supreme Court end the program, rather than tweak or make wholesale changes to the program. The panel, consisting of five judges and a court administrator, cited homeowner mistrust and lender resistance as two of the major reasons the program has been ineffective. Only 3/6% of of cases referred to mediation from March 2010 and ending March 2011 settled during mediation.

Proponents of the program say that statistic is skewed in that it doesn't take into account settlements reached after mediation. In addition, program advocates state lenders have intentionally sabotaged the program and did not follow the spirit of mediation. Many wanted the program to continue but with some changes. Instead of cases being automatically referred to the RMFM program, the panel recommended each of the state's 20 circuit courts make mediation decisions on a case-by-case basis or allow them to join a new program yet to be created. The recommendations of the panel have been forwarded to the Florida Supreme Court but there is no timetable for the end of the program or the creation of another.

To date, there are roughly 350,000 foreclosures backlogged in Florida's court system. If you are facing a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Lawyer or a Florida Foreclosure Defense Lawyer today to determine what foreclosure alternatives may be available to you.

In September, the Florida Supreme Court ordered a review of the effectiveness of the mandatory Residential Mortgage Foreclosure Mediation Program (commonly referred to as the "RMFM Program"). The program has not fully accomplished its goal of helping homeowners find alternatives to foreclosure and decreasing the foreclosure caseload in Florida courts. The Florida Supreme Court ordered the program in December 2009.

The Supreme Court Administrative Order signed on Monday, September 26, 2011 appointed five judges and one court administrator to evaluate the success of the program and recommend whether the program should be continued, changed, or eliminated altogether.

Judge Burton Conner of the 4th District Court of Appeal and who served on the Task Force that recommended program back in 2009, was one of the five judges chosen to re-evaluate the program. According to Judge Conner, just like anything new, the program has experienced growing pains, but he is hopeful banks will progressively see the advantage of going to mediation. "There has been institutional resistance because it is such a new tool. With anything new it takes a while to figure out how it works and how you can benefit." The committee has until October 21, 2011 to submit its recommendation of the program to the Florida Supreme Court.

Throughout Florida, only 3.6% of all cases referred to the mediation program, over the course of 1 year, ended with a written agreement. Of the homeowners who actually participated in the program, there was a 25% success rate statewide. Alternatives to foreclosure contained in written agreements included loan modifications, deed-in-lieus, and short sales.

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

40% of foreclosure cases backlogged in the Florida Court System has been cut over the last year. A combination of increased efforts by the courts and cases being dropped or dismissed by banks are responsible for much of the relief. The Office of the State Courts Administrator shows that 201,524 foreclosures were disposed of last year (96,630 disposed of by summary and final judgments, 104,126 were dismissed). However, if a foreclosure case was disposed of through a dismissal, it can most likely be refilled. The question is will they be re-filed and when?

Foreclosure cases can be voluntarily dismissed by banks for a number of reasons but most are dismissed due to paperwork irregularities. Numerous news stories have emerged revealing that bank employees signed foreclosure paperwork without first personally verifying information contained in the documents (commonly referred to as "robosigning"). Other paperwork irregularities have included issues regarding proper notarization, erroneous or forged assignments, and missing or erroneously prepared mortgage documents.

The majority of foreclosure actions that were voluntarily dismissed by banks throughout the last year for one or more paperwork issue, will most likely be filed again. But, foreclosure filings have remained at a decreased rate as banks have increasingly been using other means rather than foreclosure to deal with struggling homeowner, including permitting more homeowners to short sale their property, approving more loan modifications, and allowing homeowners to stay in properties until after the final foreclosure sale.

At the end of the 2010-2011 fiscal court year, 260,815 of foreclosure cases that were pending at the beginning of the year (460,000) remained. 117,000 new cases were filed within the year (which is lower than what was expected). As of June 30, 2011, the number of foreclosure cases pending in the court system is 378,000.

If you are facing a Florida Foreclosure Lawsuit or have had your Florida Foreclosure Lawsuit voluntarily dismissed by your bank, contact a Florida Foreclosure Defense Lawyer or a Jacksonville Foreclosure Lawyer today to review your case in order to determine what foreclosure defense options may be available to you.

The aptly names "Helping Responsible Homeowner Act of 2011" has been recommended by members Congress to help more borrowers refinance their current mortgage loans. This new act would remove the risk-based fees on mortgage loans that Fannie Mae and Freddie Mac already endure the risk on, and could potentially allow about 5 million more home loan borrowers refinance. This could potentially be a far-reaching and speedy way to get money into the overall U.S. economy. It is hopeful that the act could also decrease the number of strategic defaults by underwater borrowers, those who are defaulting because they owe more than their home are currently worth.

An adjustment to the current Home Affordable Refinance Program (HARP) is also being supported by many members of Congress. The adjustment would restructure and streamline the appraisal and closing processes for homeowners who are refinancing, which could reduce the overall cost and effort associated with mortgage refinancing. Suggestions have also been made to increase the present required loan-to-value ratio.

The current Home Affordable Refinance Program has allowed homeowners with Fannie Mae and Freddie Mac backed mortgages to refinance their existing mortgages at decreased interest rates, but the program has not provided the widespread help across the country as was initially hoped. Currently, Fannie Mae and Freddie Mac charge high, risk-based up front fees when refinancing risky mortgage, which the Helping Responsible Homeowner Act of 2011 seeks to eliminate.

Nevertheless, a long-term solution, widespread refinancing is not enough without an improved economy and value appreciation. If you are currently facing a Florida Foreclosure Lawsuit and your house is underwater, contact a Jacksonville Foreclosure Lawyer or a Florida Foreclosure Lawyer today to determine what foreclosure alternatives may be available to you.

According to a report entitled "The Post Foreclosure Experience of U.S. Households," by a Federal Reserve Board discussion group appose the impression that post-foreclosure homeowners are forced to move in with family or crowded, poor neighborhoods in order to cover their bills. Instead, the report states more foreclosed homeowners are beginning to plan ahead for what they will do after foreclosure--a strategic exit after foreclosure--allowing them to remain in the same, better, or at least comparable living standards.

After foreclosure, 60% of foreclosed homeowners are living in single-family homes, such as a rental, in a neighborhood with educational levels and home values similar to what they had pre-foreclosure. One Palm Beach mother told the study her plans include staying in the same school district for her children. She further stated, "I know tons of people going through this, and they are making plans for when they get kicked out of their homes...They are planning to rent, centering it around their kids' schools. They are not moving into one-bedroom apartments."

The report further found that household size post-foreclosure only increased from 2.24 adults from 2.27 adults. Only roughly 12% are forced to move in with an older family member (such as a parent). Compare the 12% to the 5% of adults who move in with older family members while not in foreclosure.

Another part of the study looked at how long once a foreclosure is initiated, before a homeowner is forced to leave the home. The report found only half of borrowers are forced to leave their homes after two years. The postponement reflects the aspect that many foreclosures are never finished as loans are worked out or the home is sold. However, it also shows how long it takes for a foreclosure to work its way through the court system. In Florida, the average home spends 676 days in foreclosure. That is almost 2 years!

Foreclosure does not have to mean a smaller living space in a bad part of town, or a quick move. If you are facing a Florida Foreclosure Lawsuit, contact a FFlorida Foreclosure Defense Lawyer or a Jacksonville Foreclosure Defense Lawyer today for a free review of your situation to find out what foreclosure options may be available to you.

If you are facing Florida Foreclosure Lawsuit, you may be unsure of what options you may have. Talking to an attorney can help wade through all the potential options and help you make an informed decision. Here are 5 foreclosure options and potential ways a talking to a Foreclosure Defense Attorney can help you.

1. Extensions and Forgiveness: A Foreclosure Defense Attorney may be able to help you gain additional time in your home and/or obtain forgiveness on some of your past due payments, late fees, and charges.
2. Lower your Monthly Payments and Interest Rate: A Foreclosure Defense Attorney may be able to help you negotiate a new, lower interest rate, which will lower your monthly payment.
3. Forbearance: A Foreclosure Defense Attorney may be able to help you negotiate a period of lower monthly payments; after which you would resume your normal monthly mortgage payment.
4. Short Sale: A Foreclosure Defense Attorney may be able to help you negotiate a Short Sale. A Short Sale is where you and the bank agree to sell the property for an amount less than what you owe on the property. The lender then agrees to release you from the loan and accept a lower amount than what they are owed. The amount not repaid is called a deficiency. In some, but not all cases, the lender will agree to not hold the borrower responsible for the deficiency.
5. Deed-in-Lieu of Foreclosure: A Foreclosure Defense Attorney may be able to help you negotiate a Deed-in-Lieu. A Deed-in-Lieu is where the borrower conveys the property to the lender in order to satisfy the loan that is in default and avoid foreclosure. There are several advantages to both the borrower and lender. One advantage to the borrower is they are immediately released from most or all personal indebtedness associated with the loan in default. A Deed-in-Lieu also hurts your credit less than a foreclosure. The benefits to the lender include less time and cost spent repossessing the property, and a lower risk of vandalism to the property by the borrower.

If you are facing a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Lawyer or a JFlorida Foreclosure Defense Lawyer today for a complimentary case review to see if any of these options could be available to you.

Bank of America has just announced a new pilot program in Florida to test whether extra monetary incentives will be enough to get troubled homeowners to agree to and successfully close short sales. The incentives will range from $5,000 to $20,000 and are only offered on investor-approved, pre-offer short sales. In order to be eligible for the short sale program, the short sale must be initiated between September 26 and November 30, 2011 and be completed prior to August 31, 2012.

A Bank of America spokesman stated that the bank chose Florida because the state is experiencing higher than average foreclosure rates and is a "viable market to gauge incremental short sale response and completion rates when presenting homeowners with relocation assistance at closing." This is not the first time Bank of America has offered incentives for completed short sales but it is the first time the mortgage giant has offered incentives this large.

Homeowners eligible for the "Test-and-Learn" program will receive a solicitation letter directly from Bank of America or may call the bank directly at 877-459-2852 to determine their eligibility. A Bank of America spokesman has stated that if the pilot program is deemed a success, it may be spread to other parts of the country.

If you are facing a Florida Foreclosure Lawsuit and have been denied the opportunity to short sale your home, contact a Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Defense Lawyer today to determine what foreclosure alternatives may be available to you.

Wells Fargo, which purchased Wachovia in 2008, has reached a settlement with investors which claimed Wachovia misled investors on the sale of securities between 2006 and 2008. Investors have accused Wachovia of intentionally misrepresenting the "quality of assets linked to the mortgage portfolio of Golden West Financial." The marketing material in question emanates from the marketing of 30 bond and security sales which totaled more than $35 billion, much of which came from "pick-a-pay" loans or option adjustable rate mortgages.

Mary Eshet, a spokesman for the bank, agreed to the $590 million settlement "in order to avoid the distraction, risk and expense of on-going litigation" and "does not constitute an admission of Wells Fargo of liability or any violation of law by Wachovia." Attorney's representing the investors stated "these settlements reflect an outstanding result for bond and preferred security purchases who were damaged as a result of false and misleading offering materials."

As many investors take to the courts to try to undo the damage done to them by the unscrupulous lending activities by many banks, where is the justice for the homeowners. If you are facing a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Defense Lawyer to determine what foreclosure defenses may be available to you.

ThinkProgress.org is reporting that a former VP with Goldman Sachs changed his name and later went to work with California Congressman Darrell Issa. Last month, Issa apparently sent a letter to government regulators asking that they provide justification for the government's new regulations. Such letters are usually not written by congressmen themselves; instead, members of their staff usually write letters many of these letters for them. It's common for the letters to conclude with the name of the actual author, and some of Issa's letters were apparently written by a Peter Haller.

The letter Mr. Haller wrote on Mr. Issa's behalf resembles many in the banking industry's desire to avoid governmental regulations on derivatives -- derivatives similar to the ones that helped bring down the economy in 2008. The problem is that Mr. Haller is actually Peter Simonyi, a former Goldman Sachs VP who left the bank in 2008. Further, Mr. Issa sits on the Oversight Committee, which traditionally investigates major corporate scandals but has recently shifted away from that.

This allegation is another cog in the wheel of the banking industry's recent scandals, including robo-signing and illegal repossessions. If you are facing a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Defense Attorney today for a complimentary consultation.

In July of 2010, the Tampa Bay area saw more than 6,000 people received some kind of foreclosure communication. That number includes initial foreclosure filings, notices of foreclosure sale or repossession notices. That number fell to just 2,751 in July 2011, a nearly 54 percent decrease in people receiving foreclosure paperwork. To some, this signals a national trend that the foreclosure crisis has reached its peak.

Advocates that the foreclosure crisis has peaked cite a number of possible reasons to support their contention.One potential possibility is that lenders are being cautious in filing because of the new allegations of robo-signing and potential falsification documents. But even if that is the case, the government emphasis on curbing foreclosure fraud has helped the number of foreclosure filings remain at bay as lender have grown more cooperative in striking deals with homeowners. This could be because the government is applying pressure on lenders behind the scenes or because the task of proving ownership appears to be a daunting one, too burdensome for lenders to undertake.

This doesn't mean the housing market is in the clear just yet, although the "big drop" in foreclosures from July 2010 to July 2011 hopefully means the nation has weathered the worst of housing woes. In fact, National foreclosure filings in July 2011 were down 35 percent from where they stood in July of 2010.

Just because foreclosure filings are down now doesn't mean that they won't jump up again in the future. If you should receive a Florida Foreclosure Lawsuit, be sure to contact a Florida Foreclosure Lawyer or a Jacksonville Foreclosure Lawyer as soon as possible to determine the best way to proceed.

Florida foreclosure activity is definitely at a low as courts and banks try to get on the same page (quite literally) with faulty documentation. As foreclosures begin to ramp up again, Florida real estate prices are projected to go down according to Roy Oppenheim.

Mr. Oppenheim cites many reasons for his belief that prices will begin to go down. Issues such as Government benefits ending, new foreclosures begin filed, past foreclosures that were dismissed being re-filed, and the continuation of fraud-closures that have plagued the court system for the last several years. Mr. Oppenheim has likened the lull in foreclosure activity with the "eye of a storm."

As foreclosure activity is expected to resume in the very near future it is a good idea to be prepared. If you are facing the prospect of a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Defense Lawyer for a complimentary case review in order to determine what foreclosure defense options may be available to you.

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.

A recent article in Bloomberg News reported that America's biggest mortgage servicer has a new trick up its sleeve. With the number of foreclosures continuing to flood the housing market, Bank of America has started programs around the country where it will "donate" hundreds of the repossessed homes, and then turn around and demolish them.

Generally, lenders dislike disposing of repossessed homes because it is time consuming and can be expensive for them. With the new "donate-detonate" program, Bank of America will be able to quickly bypass the disposal stage. By partnering with agencies that manage blighted properties, the bank sells a house at a nominal value ($1) in order to structure the deal as a transaction rather than a gift.

It may appear as though Bank of America is doing a good deed to the community, as many of the homes that will be demolished are uninhabitable or severely damaged. But behind the scenes, Bank of America may come out on top, as it will likely receive a generous income tax deduction for the fair market value of the home. The bank has plans to demolish 100 properties in Detroit and 150 in Chicago, and may add nine more cities to the list by the end of the year. The lender will pay as much as $7500 for demolition or $3500 in areas eligible to receive funds through the federal Neighborhood Stabilization Program.

Bank of America's has indicated its intention in demolishing homes is to clear a backlog caused by a soft real estate market so that the foreclosure process can speed up. However, the knockdowns are not likely to outpace foreclosures. These programs are being closely watched by other major bank, such as Wells Fargo, Citigroup, JP Morgan Chase, and Fannie Mae, who have indicated a desire to implement their own programs soon.

This is just another example of banks not doing what is in the interest of homeowners and the country at large. If you are facing a Florida Foreclosure Lawsuit from Bank of America, contact a Jacksonville Foreclosure Lawyer or a Florida Foreclosure Defense Lawyer today for a complimentary case review to determine what foreclosure alternatives may be available in your case.