Florida Mortgage Modification Lawyer Blog

One Million Americans May Lose Their Homes to Foreclosure in 2010

Thu, 15 Jul 2010 12:27:24 -0500

Well, I knew it would get bad, but not this bad. It is predicted that 1 million homeowners in the United States will lose their homes to foreclosure this year. Are you kidding me, that is just insanity. And nothing is being done to stop the insanity. Next, the Federal Government is going to go back to these people whose homes were lost and say to them, well we know you lost your home, but, now we have to raise your taxes because of x, y or z. This is mind-boggling. In my opinion, many of these loses could have been prevented had our elected officials in Washington done the right thing, rather than the popular thing.

I cannot justify under any circumstances the wasteful spending of money. Our Federal Government has wasted and continues to waste taxpayer dollars with no accountability. Our American Dream has been leveraged, and we cannot afford to pay the bill. It makes me sick thinking that I am going to educate my children and they will be working their entire lives to pay for the hypocrites that we elected into office. I will stop the rant before I go off the deep end.

Short Sales After Bankruptcy? Yes, You Should.

Tue, 29 Jun 2010 16:22:06 -0500

This is a question that gets asked ten times a day around here, and the answer is: If you received a discharge in a bankruptcy case in which you surrendered a piece of real estate, then you don’t HAVE to do a short sale in order to rid yourself of the mortgage debt associated with that real estate. However, there are several other factors to consider that just may convince you that a short sale is still in your best interests.

Can I Strip a Second Mortgage Off My Home?

Sat, 26 Jun 2010 07:58:02 -0500

If you are one of the many Floridians that took out a second mortgage during times when home prices were on the rise, this entry is for you. I have met with many homeowners, especially in Southwest Florida, that are paying on two or more mortgages when their home value does not exceed the first mortgage. In these circumstances, a Chapter 13 bankruptcy may be able to help.

In a Chapter 13 bankruptcy, where the value of the home does not exceed the first mortgage, a Motion may be made to declare the second mortgage an unsecured non-priority debt, placing it in the same position as a credit card or other unsecured non-priority debt to be discharged. For example, where a home has a current value of $100,000, with a first mortgage balance of $150,000 and second mortgage value of $50,000, subsequent to the filing of a Chapter 13 bankruptcy petition, a Motion may be made to “strip” the $50,000 second mortgage, relieving the homeowner of that debt, allowing the homeowner the opportunity to focus on paying the first mortgage.

Florida Foreclosure - Can I Walk Away From My Home?

Tue, 15 Jun 2010 06:20:28 -0500

A Florida homeowner can walk away from a home, but will face foreclosure. This decision should be considered very carefully. Why?

Florida Foreclosures are starting to take a turn for the worst. In Florida, once a home is sold on the Courthouse steps, the lender must apply the monies received from the purchase to the balance of the loan. When I first started practicing law, deficiencies were unheard of, as home prices consistently went up; however, as we all know, those days are memories.

Now, it seems that all the homes being sold on the Courthouse steps are for less than the outstanding balance. Once the lender applies the proceeds of the sale to the outstanding balance, the borrower could be responsible for the remaining deficiency.

In the last two weeks, I've seen several lenders, mortgage companies and banks starting to pursue deficiencies against the former homeowners.

The Judges Are Getting Ticked Off At Fraudulent Documents

Tue, 20 Apr 2010 07:39:49 -0500

Recently, the Honorable Anthony Rondolino, a Circuit Court Judge in Pinellas County, Florida stated at a hearing in a mortgage foreclosure case:

"I don't have any confidence that any of the documents the Court's receiving on these mass foreclosures are valid."

Judge Rondolino's comments were made while considering whether to reverse his prior decision on granting a summary judgment on behalf of the mortgage company and against the homeowner.

This comment and the recent case law coming out of the Florida's Second District Court of Appeal makes this writer extremely happy.

At the end of last year, the Florida Supreme Court entered an Administrative Order on Mediation in an attempt to help homeowners save their homes.

Judge Rondolino also commented:

"You know what I'd really like to see? I'd like to see in one of these cases where a defense lawyer cross-examines, take a deposition of these people, and we can see whether they ought to be charged with perjury for all of these affidavits. I would just love to see that, ..."

What the Judge was getting at was the mass production of affidavits not based on personal knowledge and submitted to the Court by the lenders in support of the foreclosure.

We recently had a similar case where GMAC Mortgage pursued a foreclosure case only to find out later that they never owned or held the note. Shocking!

There will be more to come on this as the Court System is Fed Up with Fraudulent Documents. Hopefully, the next time I will write with a case about Sanctions against a lender for producing fraudulent documents.

Mortgage Modification in Lee County, Florida

Mon, 08 Mar 2010 11:51:09 -0500

Once again the Government fumbles the ball when it comes to Southwest Florida Homeowners.

It started with trying to keep people in their homes with HAMP and HARP. Now, after realizing how poorly planned and executed the programs are, the government is no longer trying to help homeowners stay in their homes. Now, the government is trying to force homeowners out, but not without letting the Banks get their pound of flesh.

Under a government plan announced in November, 2009, but not set to go into effect until April, 2010, homeowners who are able to short sale their house will receive $1500.00, banks and servicers on the other hand will receive at least $2000.00.

It doesn’t seem that the banks are willing to let you have the government’s money in the same easy way that they received it. As reported in the New York Post, Wells Fargo vice president had the following quote, “If someone doesn’t come to us saying, ‘I’ve done everything I can, I used all my savings, I borrowed money and, by the way losing my job and moving to another city, and have all the documentation,’ then we’re not going to do a short sale.”

Once again the fix to the housing crisis amounts to little more than a Public Relations attempt to make it look like help is coming for Main Street while Wall Street continues to make big profits.

I will remember that when I vote.

Florida Consumer Protection and Homeowner Credit Rehabilitation Act

Mon, 22 Feb 2010 07:04:54 -0500

Recently, a new bill has been introduced in Florida. The Bill is called: Florida Consumer Protection and Homeowner Credit Rehabilitation Act. This is one of the most Anti Consumer Bills that I can recall.

The Florida Bankers Association presented this bill to Florida legislators. This bill is designed to kill the due process rights of Florida homeowners by changing us from a judicial foreclosure state to a non-judicial foreclosure state.

The act, titled The Florida Consumer Protection and Homeowner Credit Rehabilitation Act, really needs to be read by all 18 million Florida residents. If passed into law, foreclosure lawsuits would be a thing of the past.

Non-Judicial Foreclosure Is Ridiculous Part I

Mon, 22 Feb 2010 06:42:11 -0500

Please allow this to serve as a response to Mr. Alex Sanchez’s Guest Opinion. I will address Mr. Sanchez’s arguments one at a time, but before I do, a little bit of reality needs to be served up. Let’s start with what’s really going on in Southwest Florida.

There are predictions that we will see another 3.5 to 5.5 million foreclosures in the United States in the coming years, and Florida will continue to be at the top of the foreclosure lists, and yes, that will keep the real estate market depressed. This is the only point on which I agree with Mr. Sanchez.

There is no doubt that unless something dramatic happens, our real estate market will remain depressed for quite some time.

Non-Judicial Foreclosure Is Ridiculous Part II

Mon, 22 Feb 2010 06:33:55 -0500

Non-judicial foreclosure is not the answer to the Florida foreclosure problem. The answer to the foreclosure problem is open communication between a lender and a homeowner. The Florida Supreme Court recently addressed a problem that the Florida Governor and the Florida Legislature have been ignoring for several years.

The Florida Supreme Court established a task force to study the foreclosure problem, and the number one problem the task force found was a communication problem. It seems that the foreclosure task force ignored the people dealing with those lenders associated with the Florida Bankers Association. Lenders with the Florida Bankers Association work for months and months with its borrowers.

Non-Judicial Foreclosure Is Ridiculous Part III

Mon, 22 Feb 2010 06:27:45 -0500

Thirdly, Mr. Sanchez states that the current judicial process in Florida takes one to two years. Where is the factual basis for this statement? Sure, some foreclosures last a year or two but that is not the result of the homeowner. Usually, it is because the lender cannot prove its case to the Judge. Yes, there are unopposed cases where the lender cannot prove its own case, and the case has to be delayed. How pitiful is that? A lender files a foreclosure action to take someone’s home away, is unopposed in Court, and still cannot prove its case.

Another problem in the Florida Court’s right now is lenders that are cancelling the foreclosure sale because they do not want the property back in their name. So, rather than conduct the foreclosure sale, the attorneys for the lender are instructed to cancel the foreclosure sale, thereby leaving the homeowner as owner of record, and therefore, liable for the taxes and maintenance of the property.

Non-Judicial Foreclosure Is Ridiculous Part IV

Mon, 22 Feb 2010 06:21:50 -0500

It is ultimately the lenders decision whether to deny a modification. It is the lenders who decide not to allow a principal reduction. It is the lender who decides not to lower the interest rate. It is the lender who shuts off communication with the homeowner. It is the lender who decides at what price a short sale will be allowed.

Mr. Sanchez then switches his argument to investors and flippers, and his argument is vague and ends with a flippant comment. He attempts to bolster his argument by alluding to the amount of homes in foreclosure that were purchased by speculators. Yet his argument fails to gain strength, and in fact becomes fractured.

If his argument is that speculators are not entitled to their day in Court, then, wouldn’t the same hold true for other types of cases. Maybe there are too many small claims cases, in his opinion, or maybe he feels there are too many criminal cases in the Court system. Why do they have to be in Court? My only comment to Mr. Sanchez on this point is that I think investors and flippers are still entitled to their day in Court, and the law in the State of Florida guarantees this proposition.

Mediation of Foreclosures One Step Closer

Sat, 13 Feb 2010 07:52:55 -0500

Ladies and Gentlemen:

A bill was introduced by Florida Senator, Dave Aronberg, which would make mediation an option in mortgage foreclosure cases where the foreclosure is against a homestead.

Here is the story:

Mortgage Modification Fails Because of 40 Cent Bank Error

Sat, 13 Feb 2010 07:33:16 -0500

Recently, WINK News did a story on one of our clients. This is no ordinary client. He and his wife are professionals, and they properly documented this story. Each and every word of what this gentleman states is true. I just wish WINK could have aired the entire interview. My hat is off to WINK for covering this timely and informative story. I'm sure there are many more out there. Take a look, you are not going to believe it.

Home Affordable Modification Program - A Waste Of Time

Tue, 19 Jan 2010 07:29:06 -0500

Well it's 2010, and I am wondering what the Federal Government is going to do about the failing Home Affordable Modification Program. (HAMP). When the President ran for office, one of his rallying cries was that he was going to help homeowners stay in their homes by modifying mortgages. The Making Homes Affordable Program was supposed to help 7 - 9 million families avoid foreclosure.

Well if you have ever read anything that I have written, you will know that I am deeply disappointed in the results with the President's Making Homes Affordable Program. On the surface, it seemed too good to be true, and you know what they say about things too good to be true: It usually is too good to be true. Kinda like that mortgage we were promised in 2005 and 2006, that we could easily refinance in two years when the property was worth twice what we paid for it. Hmmm, yea that was too good to be true as well.

Foreclosures Still On The Rise In Florida

Fri, 06 Nov 2009 10:57:04 -0500

Government officials are telling us that the recession is over, but the foreclosure crisis is still increasing in Florida and nationwide. Realty Trac released its US Foreclosure Market Report for the third quarter of 2009, which shows that foreclosure filings [including auction sales, default notices and bank repossessions] were reported on 937,840 properties in the third quarter - a 5% increase from from the second quarter of 2009. Significantly, this is almost 23% higher than last year at this time. Estimates are coming in that 1 in 136 US homes are experiencing some type of foreclosure issue. This is the highest that this rate has been since the foreclosure crisis began. The rate for Lee County is said to be 1 in 76 homes – and in some areas is significantly higher.

Florida is in the top 10 states for the highest foreclosure rate during this quarter, and is one of the 6 states [Florida, Ohio, Utah, Georgia, Michigan, Colorado and Illinois] which constitute 62% of the nation’s total foreclosure activity. Many reports have Florida at 4th in overall foreclosure activity in the nation. So even if you’re hearing that the recession is over, unfortunately for us, the foreclosure rates are most definitely not!

Posted by Shannon Houk