I’ve received a late payment notice from my bank, but I am on time with my mortgage payments. Can they legally foreclose on my home?

To foreclose on a property under existing Florida law, a lending institution must show not only a borrower’s default, but that the foreclosure is warranted under Florida’s laws of equity. If your lending institution cannot do this, they cannot foreclose on your mortgage.

Lending agents will typically not start foreclosure proceedings until you, as a borrower, have gone 3 months without making a mortgage payment, and have therefore defaulted. The 3-month rule, however, is not hard and fast and will depend on the lender.  Read more...

What information must a lender or creditor disclose?

When you are dealing with lenders or creditors, you have the right to a clear and accurate loan disclosure where important information pertaining to your loan or line of credit will be explained to you in an appropriate manner. The Truth in Lending Act (TILA) requires that all lenders and creditors comply or be held liable for any violation of the act.

Under the TILA, lenders and creditors must disclose the following information:

 Read more...

• the identity of the creditor;
• the amount financed;
• an itemization of the financed amount;
• the annual percentage rate (APR);

What is HAMP and how does it affect foreclosure in Florida?

The federal government has responded to the increase of foreclosure in South Florida and across the nation by developing the Home Affordable Modification Program (HAMP) as part of the Making Home Affordable initiative. HAMP is a loan modification program designed to help homeowners with making their mortgage payments affordable and avoid foreclosure in South Florida.

Eligibility for HAMP involves:

 Read more...

• owning and occupying a 1-4 unit residence;
• owing $729,750 or less on your home;
• having financial circumstances making it difficult or impossible to make your mortgage payments;

What can I do if my lender violated TILA?

There are several things you can do if a lender has violated the Truth in Lending Act (TILA), a federal law intended to protect borrowers and help them make informed decisions when dealing with lenders. It’s extremely important to be aware of your options as a borrower, specifically with regards to your mortgage.

Remedies for Truth in Lending Act Violations

When a creditor violates the Truth in Lending Act by failing to properly disclose information, your legal remedies include:  Read more...

• rescinding your mortgage;
• consulting with a South Florida attorney to file a claim for damages;

HAMP Eligibility Guidelines (Part A)

If you are one the many Florida homeowners having trouble making your mortgage payments, you should consult with a South Florida attorney with experience in foreclosure law to discuss the Home Affordable Modification Program (HAMP). The goal of this program is to provide homeowners a possible alternative to foreclosure.

Eligibility Requirements to Apply for HAMP

You must meet certain criteria before you can apply for a HAMP loan modification.

Requirements include:  Read more...

• you must be the homeowner as well as the occupant of a 1- to 4-unit home;

HAMP and Other Foreclosure Options

The government’s Home Affordable Modification Program (HAMP) is available to help you avoid foreclosure, but to apply, you must meet certain criteria. To find out if you meet the criteria, you can take the online test on the HAMP website.

You will be asked the following 5 questions to help determine HAMP eligibility:  Read more...

• Is your home your primary residence?
• Is the amount you owe on your fist lien mortgage no more than $729,750?
• Are you having trouble paying your mortgage?
• Did you obtain your mortgage before January 1, 2009?

Affordable Mortgages Under HAMP

If you have officially received approval for a loan modification under the Home Affordable Modification Program (HAMP), your loan servicer will make sure that your new monthly mortgage payment is no more than 31% of your monthly income.

The strategies used to lower your mortgage payment under HAMP include the following:  Read more...

• Reduction of your interest rate – a rate as low as 2% is a possibility. In return for the low rate, the U.S. Treasury Department extends financial incentives to your loan provider. This doesn’t mean that everyone who qualifies for a HAMP loan modification will get 2% interest rates. If a 5% rate is sufficient to lower you mortgage to an affordable payment, then a 2% rate would not be necessary.

Overview of the Foreclosure Process in Florida (Part A)

When a mortgagor, such as a bank or other lending institution, successfully forecloses on your property, that lender takes full ownership of the property. The process, however, cannot begin until you fail to make your mortgage payments.

In Florida, a lender must use the judicial foreclosure process to seize a property and the foreclosure process must take place under Florida’s equity laws. If you have been served with a foreclosure notice, you have 20 to 60 days to take action before the bank seizes your home.  Read more...

Fighting Your Florida Foreclosure Action

Once you have been served with a Foreclosure Summons, your options as a defaulting borrower become severely limited. Available options to avoid a Florida foreclosure may be further decreased by your particular situation.

You can either accept the action and allow the lender to foreclose on your property, or you can fight the action using a foreclosure defense specific to your circumstances. Should you decide to fight the action, it would be in your best interest to contact an experienced Ft. Lauderdale foreclosure attorney who is knowledgeable with foreclosure laws.

Your options after receiving a Foreclosure Summons are essentially limited to:  Read more...

The Borrower’s Right to Redemption in Foreclosure Proceedings

Borrowers have one very important right they can exercise throughout the Florida foreclosure process, which is the right of redemption. Redemption is an equitable right that is intrinsic in all mortgages written in Florida. This is in addition to any other rights you are allowed to exercise as spelled out in your loan papers.

The right of redemption provides you with the opportunity to save, or redeem, your property up until the Certificate of Sale of the property is filed. In order to use this right, you must pay your debt in full to the lending institution.  Read more...

Citi Mortgage To Let Troubled Homeowners Stay for 6 Months

Citi Mortgage To Let Troubled Homeowners Stay for 6 Months

By : The Associated Press
Feb 11, 2010

Citigroup Inc. plans to let homeowners on the verge of foreclosure stay in their homes for six months — if they turn over the deed to their property.

Citi said Thursday it is launching the pilot program, dubbed “Foreclosure Alternatives,” this week in Texas, Florida, Illinois, Michigan, New Jersey and Ohio. Initially, about 1,000 homeowners are expected to participate. Citi may expand the program nationwide.  Read more...

Florida Supreme Court Adopts Foreclosure Mediation Rules

Florida Supreme Court Adopts Foreclosure Mediation Rules

From : the Associated Press, Feb 11, 2010

Lenders will be required to pick up the tab for investigating and verifying ownership before foreclosing Florida home mortgages under new mediation rules.

The Florida Supreme Court adopted the rules Thursday in an effort to help the state’s judicial system better cope with a flood of such cases.

Florida Supreme Courts adopts ruling to force lenders into mediation in effort to reduce future foreclosures  Read more...

Options You Have to Help You Avoid Foreclosure

Options you can take to help you avoid foreclosure

Foreclosure has been one of the foremost topics within the real estate world in recent years, as each year more and more Americans are suffering from the inevitable prospect of an imminent foreclosure.

Even with more than 20% of all U.S. homeowners being “underwater” as of 4th quarter 2009, more and more people are realizing that foreclosure isn’t the end and you have other options than to simply throw in the towel.

Foreclosure is not your only option, consider all your choices  Read more...

Shocking statistic: 20% of all U.S. Homeowners are Underwater

Shocking statistic: 20% of all U.S. Homeowners are Underwater

Information was released today which shows that nearly 1/5th of all homeowners in the United States actually owe more on their home than the house is currently worth in re-sale value.  This according to Zillow.com   Read more...

The advantages of Short Sales for those in desperate financial situations

The advantages of Short Sales for those in desperate financial situations

Each year an increasing amount of homeowners are facing financial problems due to an unstable economic climate and sometimes new mortgages payments are just too high for homeowners to pay, so they’re looking for new alternatives to try and avoid the prospect of foreclosure. The reason people find themselves in this situation is often because they are lured in with a loan that has attractive low payments, however, these low payments eventually will come to an end, leaving homeowners in a sticky financial situation.  Read more...

Why is a Foreclosure Defense Lawyer So Important?

Why is a foreclosure defense lawyer so important?
Joe Sloboda, The Burgess Law Firm

In today’s economic climate, more and more people are finding themselves in deep financial trouble. In 2009, there were an unbelievable 3 million+ foreclosures nationwide.   If you are suffering from money troubles and you’re faced with a potential impending foreclosure, then help is at hand and that help will come from a foreclosure defense lawyer.  It is possible that by engaging with such an Attorney this can you stop or at the very least slow down the foreclosure proceedings you are facing.

 Read more...

Falling behind on your FHA mortgage? Help may be on the way

Falling behind on your FHA mortgage?  Help may be on the way

by : Joe Sloboda, Burgess Law Firm

Across America millions of homeowners are trying to get their mortgages modified, many times these people are told that they need to “fall behind” or to be late on their payments before their lender will even consider talking to them about a loan modification.  Let me first say that while it is true, many lenders are acting more quickly to help those homeowners who are at risk of foreclosure, it is NOT necessary for a homeowner to be late on payments in order to get assistance.   Read more...

Almost 3 Million Homeowners Recieve Foreclosure Notices in 2009

Almost 3 Million Homeowners Recieve Foreclosure Notices in 2009

Joe Sloboda, Burgess Law Firm

The amount of homeowners in the United States who received foreclosure notices in 2009 is staggering and reached a record setting number of almost 3 million.  This is leaving many people to wonder what can be done for the millions of people who are falling behind on their mortgages every month.  Read more...

Banks may warm to idea of principle reductions

by John Gittelsohn and Prashant Gopal, Bloomberg News  Read more...

Foreclosure starting to take toll on prime borrowers

Foreclosure starting to take toll on prime borrowers

by Kathleen M. Howley and Mike Dorning; Bloomberg News

Jan. 4 (Bloomberg) — Homeowners with the best credit are the next big risk for the U.S. housing market.

An increase in mortgage defaults among prime borrowers in 2009 is likely to accelerate this year, slowing the real estate recovery even as Americans become more optimistic about the economy, said Robert Shiller and Karl Case, the economists who created the S&P/Case-Shiller Home Price Index.  Read more...

Warning Signs of South Florida Foreclosure Scams

With the number of South Florida foreclosures rising, scam programs are multiplying. Many fraudulent organizations have been preying on the emotional distress many homeowners feel when facing foreclosure.

Keep your eyes open for the following warning signs when considering a mortgage loan modification or foreclosure assistance:  Read more...

• High up-front fees – although many legitimate foreclosure assistance companies do charge fees, they are small and not required until after they start your case. Be especially wary of companies that require high up-front fees and claim to be government-sponsored. Government programs are free.

3 reasons home prices are heading lower

3 reasons home prices are heading lower

By Les Christie, staff writerDecember 31, 2009: 6:36 AM ET

NEW YORK (CNNMoney.com) — After four months of gains, home prices flattened in October. Worse yet, industry insiders think that they’ll soon start to fall.

Prices have risen more than 3% since May, according to S&P/Case-Shiller

But most forecasts predict price declines in 2010, with possible losses ranging from anywhere from 3% on up. Fiserv Lending Solutions, a financial analytics firm, forecasts that prices will fall in all but 39 of the 381 markets it covers, with an average drop of 11.3%.   Read more...

Home Equity Loans – Not so easy anymore!

Home Equity Loans are just not so easy for homeowners anymore

Originally Published by Adrain Sainz of the Associated Press

Hocking the house for quick cash is a lot harder than it used to be, and it’s causing headaches for homeowners, banks and the economy.

During the housing boom, millions of people borrowed against the value of their homes to remodel kitchens, finish basements, pay off credit cards, buy TVs or cars, and finance educations. Banks encouraged the borrowing, touting in ads how easy it is to unlock the cash in their homes to “live richly” and “seize your someday.”

Now, the days of tapping a house for easy money have gone the way of soaring home prices. A quarter of all homeowners are ineligible for home equity loans because they owe more on their mortgage than what the house is worth. Those who have equity in their homes are finding banks far more stingy. Many with home-equity loans are seeing their credit limits reduced dramatically.  Read more...

Foreclosure plague slowing : Filings fall by 8%

The following article that was posted earlier in this month on cnnmoney.com speaks to the fact that in the month of November there was a decrease in foreclosure filings nationwide.  This does not necessarily hold true to South Florida.  And the questions still persists if this is a temporary lull considering the millions of people who will soon find themselves with no further unemployment benefits as well as no new jobs.  So with loan modification plans continuing to be revised by the Obama Administration and hundreds of thousands of people awaiting approval of Short Sale offers by their current lenders we sit and we wait to see what the new year to bring us.  I hope that you find the following article insightful and informative.  Read more...

Report says homeowners whose loan payments are cut by 20 percent or more still falling behind

The following is a recent story that was published in the Fort Lauderdale Sun-Sentinel which talks about the recent studies that were released in a recent Government study which state that upwards of 40% of homeowners who recently had their mortgage payments cut by 20% or more found themselves back into default or delinquency within the next 12 months.  The article references the recent Obama plan to assist homeowner’s in getting their mortgage payments reduced but since that plan has only really been in effect for less than 6 months I personally find it hard to understand how the study could even be talking about borrowers who had their mortgages reduced in the Obama plan since all of them must have had their mortgages reduced prior to the plan going into effect.  Additionally (like many recent news reports) the story fails to address the issue of the lenders not fully converting the temporary modifications that have been offered to so many people, into permanent modifications that reduce payments and perhaps reduce total amount owed.  To find out more on how to avoid foreclosure or to negotiate a Short Sale please contact the Burgess Law Firm to request a consultation. (read more below)  Read more...

LOCAL INVESTORS SNAP UP APARTMENT COMPLEXES

In a sign that the tide may be turning in the Commercial Real Estate markets a recent article posted last Friday in the Daily Business Review talks about 2 purchase transactions that occured recently in the local South Florida markets.  We will continue to monitor the local news wires and media for information on major real estate transactions and keep you posted.  If you or your clients are in the need for legal advice in the process of conducting a Commercial Real Estate transaction please call our offices or contact us at the Burgess Law Firm via email for more information.  Read more...

Citi’s holiday treat: No foreclosures for a month

 In a sign of the times, major banks like Citi are offering to “postpone” foreclosure filings for 30 days during the holiday season.  But not so fast, don’t get too excited.  As we have come to always find out you need to read the fine print.  What Citi is actually doing is suspending the foreclosure filings on only the mortgages that are “owned” by Citi and not the loans that are “serviced” by Citi.  This can get confusing for many people becuase they do not fully understand that in most cases, just because you get your monthly statement from Citi or because Citi may initiate the collections calls, it doesn’t mean that Citi is the actual holder of the mortgage note.  In many cases the actual “investor” or “owner” of the mortgage could be a Pension Fund or Hedge Fund that purchased your mortgage in the Secondary Market and has simply retained Citi to service the mortgage.  And unfortunately this is the situation that holds true for most Americans.  So be sure to contact your lender and ask the question, “is your company the owner of my mortgage or simply the servicer” and if they are simply the “servicer” push them to tell you who is the Investor or Owner of that mortgage.  Read more...

South Florida Luxury Home short sales are twice the national average

This is an article that was originally published Bloomberg that shows how the epidemic of Short Sales and Foreclosures is not only a problem for low to middle class families.  The problem is now running rampant with Upper Income Homeowners too.  In South Florida alone the percentage of “Luxury Homes” is twice that of the national average and more frequently these home owners are turning to Short Sale to get out from under their home. (see below)

by Kathleen M. Howley An Levy (Bloomberg News)  Read more...

The Pre-Foreclosure Decision: Top 10 Questions to Talk Over with Your Attorney

This is a re-post from an article that appeared in a monthly newsletter for the Arizona Area of Realtors earlier this year.  What is so good about this article is that it clearly lists some very specific questions that every home owner should be asking when they are considering the decision on either attempting to modify their current mortgage or simply selling the house for Short Sale.  If these are questions that you are seeking answers too, please call or contact our offices to schedule a consultation.

Re-Posted from AARNEWS . . .  Read more...

Fortune magazine says South Florida home prices could drop another 30% in 2010

Fortune magazine says South Florida home prices could drop another 30% in 2010

In a recent article released in their December 2009 issue, Forbes Magazine and Economy.com both say that home prices in South Florida (especially Palm Beach and Broward Counties) could drop by as much as 30% from current values for 2010.

Forbes Magazine recently released their 2010 housing outlook, and quite honestly this could come as a big punch in the gut for many people who believe the markets are improving and are often heard saying that ”prices will come back” and this is big cause for concern to many of the Realtors and Mortgage Professionals that we speak to on a daily basis.  Read more...

In a sign that more foreclosures could be on the horizon

This article, originally published on CNN Money gives excellent insight on how and why so many homes in the US are currently “under water” with regard to the value vs the amount owed to the mortgage lender.  Personally I believe that there is a direct relation between certain areas of the country being heavily concentrated with Neg-Amm Loans or Pay Option ARM’s as to why these areas also have such high amounts of distressed properties.  Read more below . . .

1 in 4 mortgages ‘underwater’
Report shows 10.7 million borrowers are stuck with homes that are worth less than the mortgages they owe.  Read more...

When to Contact a Foreclosure Defense Attorney?

Foreclosure Defense Article:

How does one know when to contact a foreclosure defense attorney?

You know your job is coming to an end. They’ve already announced the layoffs. You only have one month left to get another job, or go on unemployment. If you do take unemployment how much would the monthly amount be? Chances are it won’t be enough to live on. You have exactly two months of mortgage payments socked away in the bank. Will you get another job? Does one panic now, or take a wait and see approach?  Read more...

Justices debate mandatory mediation to ease crisis

November 5, 2009
Daily Business Review
Authored by : Vanessa Blum

The Florida Supreme Court was asked Wednesday to adopt statewide mandatory mediation for residential foreclosures to help judges manage the flood of filings clogging courthouses.

The high court heard arguments on a task force report recommending mandatory mediation as part of a streamlined and uniform approach to the foreclosure crisis.

While questioning some specifics of the plan, justices seemed eager to help circuit courts deal with an onslaught of foreclosure cases — many involving unrepresented homeowners with a limited understanding of the legal process.  Read more...

Best Foreclosure Defense in Weston

The recession has hit the state of Florida hard. Currently the sunshine state ranks second from the top for foreclosure filings. The other states hit hard with foreclosures are: California, Michigan, Arizona and Nevada.

For the best foreclosure defense in Weston give Burgess Law firm a call today.

The top Florida cities with high foreclosure rates are: Sarasota, Orlando and Fort Lauderdale. Just in the month of August alone there were 62,400 new foreclosure filings with foreclosure sales numbering 8,498 that had an average sale price of $192,772.  Read more...

Homeowner beware ! Make sure your mortgage modifier is licensed

South Florida Sun-Sentinel.com

More than 16,100 mortgage modification complaints filed in past six months

Mortgage modifiers must be licensed under new Florida law
State regulators cracking down, with 83 active investigations

Originally published By Diane C. Lade
South Florida Sun Sentinel
6:38 PM EDT, August 26, 2009

Hundreds of people calling themselves “foreclosure rescue specialists,” promising to quickly cut through red tape and reduce mortgage payments, have taken millions of dollars from South Florida homeowners over the past year for their services.

But unlike mortgage brokers or real-estate agents, mortgage modifiers are not required to have any special training or even a license — something many consumers don’t know.  Read more...

Hello Mr. President . . . Please send help on these mortgages !

Obama mortgage plan needs work

Many borrowers are not getting help under president’s modification or refinancing plan. Officials don’t expect problems to be fixed until the fall.

By Tami Luhby, CNNMoney.com senior writer
Last Updated: July 8, 2009: 8:10 AM ET

NEW YORK (CNNMoney.com) — Mr. President, help us get one of your mortgage workouts now.

That’s what many borrowers are saying nearly five months after President Obama unveiled his housing rescue plan. The program is beset with problems, say borrowers, housing counselors and even the president himself.  Read more...

Mortgage rates soar

Mortgage rates have been rising steadily over the last few weeks and if ever there was a time to “lock in” your rate then that it is NOW.

With current CPI, PPI and Unemployment reports being surprising optimistic and the belief on Wall Street that “the worst is over” the rates on the 10yr Treasury have started to sky rocket. This in turn is forcing mortgage rates to move up by more than a full % point in the last 4 weeks.  Read more...

Pending home sales rebounding

Pending home sales rebounding

Number of signed sales contracts continues bounce off record lows for third consecutive month.

Troubled mortgages hit record high

Troubled mortgages hit record high

More than 616,000 homeowners were hit with foreclosure actions in the first 3 months of the year, the Mortgage Bankers Association reports.

Renewed HOPE for Homeowners

Renewed HOPE for Homeowners

Congress passed a bill amending HOPE for Homeowners that may make the program more useful.

Slow Start to U.S. Plan for Modifying Mortgages

Slow Start to U.S. Plan for Modifying Mortgages

Foreclosures: ‘April was a shocker’

Foreclosures: ‘April was a shocker’

A record number of foreclosure filings took place during April, but the number of repossessions fell 11%.

Home prices slide 14%

Home prices slide 14%

National median home price falls a record 13.8% in first quarter of 2009, primarily because the market is flooded with lower-priced foreclosures and short sales.

More than one in five homeowners underwater

NEW YORK, May 6 (Reuters) – Home values in the United States extended their fall in the first quarter, with more than one in five homeowners now owing more on their mortgages than their homes are worth, real estate website Zillow.com said on Wednesday.

U.S. home values posted a year-over-year decline of 14.2 percent to a Zillow Home Value Index of $182,378, resulting in a total 21.8 percent drop since the market peaked in 2006, according to Zillow’s first-quarter Real Estate Market Reports, which encompass 161 metropolitan areas and cover the value changes in all homes, not just homes that have recently sold.  Read more...

5 tips on buying a foreclosed home

5 tips on buying a foreclosed home

Sure, there are great real estate deals to be had, if you know what you’re doing.

(Money Magazine) — 1. Finding one has become easier

You don’t need to show up at courthouse auctions or comb through legal filings. These days many banks sell foreclosed homes through real estate agents.

To find listings, look on sites that specialize in foreclosed properties, such as realtytrac.com and foreclosurepoint.com. The local multiple-listing service often has selections as well. (The fact that the home is in foreclosure is not always highlighted in the MLS, but it’s often mentioned in the description.)  Read more...

Pending home sales jump 3.2%

Pending home sales jump 3.2%

Buyers defy expectations with an increase in sales contracts signed during March.

Record Jump in Foreclosure filings

Foreclosure filings in record jump

Hope Now reports a 20% increase in initial foreclosure filings during March. But there was a steep drop in bank repossessions.

No bankruptcy help for homeowners

No bankruptcy help for homeowners

Measure to modify delinquent loans in bankruptcy court fails in Senate. Obama administration loses big stick to prod loan servicers to aid troubled borrowers.

Florida Senate passes insurance bill

Premiums could rise

Florida Senate passes insurance bill

Bill aims to reduce homeowner storm risk

By Julie Patel

South Florida Sun Sentinel

8:53 PM EDT, April 28, 2009

The Florida Senate passed a broad property insurance bill Tuesday that is expected to boost most statewide home and condominium insurance rates and reduce Floridians’ risk of paying damages if a major hurricane hits.

There are several major differences in the legislation passed by the Senate and earlier by the House, including by how much to increase state-backed Citizens Property Insurance rates. They have to hammer out a compromise before Gov. Charlie Crist considers signing it into law.  Read more...

U.S. to pay off mortgage investors

U.S. to pay off mortgage investors

Treasury Department announces new mortgage incentives for lenders, which will reduce monthly payments for millions of borrowers.