by evolveAdmin | Oct 11, 2012 | Foreclosure Defense
In good news for homeowners facing foreclosures, in August, the Federal Housing Finance Agency (FHFA) announced new guidelines for mortgage servicers. The agency aims to speed short sales with the change in guidelines. A short sale occurs when the owner sells a home for less than what is owed on the mortgage. This type of sale requires that the mortgage lender agree to forgive the difference owed. If a homeowner can demonstrate a hardship such as divorce, disability, the need to relocate more than 50 miles for work, or death of a borrower or co-borrower, lenders can now expedite short sales without any additional endorsement by Fannie Mae or Freddie Mac. Further, Fannie Mae and Freddie Mac will also waive the right to obtain a judgment against short sale borrowers who have the income or assets to provide cash contributions towards the difference they owe. Another key change provides special handling for military personnel with “permanent change of station” orders. Relocated military members automatically qualify for a short sale option, even if they are not behind on their mortgages. In addition, they are not required to cover the difference between the sale price of their home and the outstanding balance on their loans. The revamped rules also include: A more efficient process for handling short sales by borrowers in the most dire situations Merging existing short sale programs into one process Freddie Mac and Fannie Mae will offer up to $6,000 to second-lien holders in order to speed up short sales. In the past, second-lien holders were able to slow down short sales by asking for higher bids. These new guidelines...
by evolveAdmin | Jul 16, 2012 | Foreclosure Defense
The economy remains on shaky ground and more homeowner’s association are still aggressively foreclosing on Florida homes. An association may initiate a Florida foreclosure action if dues are not promptly paid. For example, two families are stuck in a bind after a foreclosure sale purchase of an Orlando home. The initial owners of the house are packing and ready to move after their homeowner’s association foreclosed on their home for missed dues. A third party purchased the home through an auction on the Orange County Clerk’s foreclosure website. The new owners bid $16,000 on the house and bought the home through the auction, however they were unaware that they would also be liable for the previous owner’s $200,000 mortgage. The new owners must also evict the current occupants. The family has not yet moved and they hope to stay in the house by renting it from the new owners. Some of those taking part in the online foreclosure auctions think they are getting a steal until they do more research. In many cases, they find a bank mortgage and they are on the hook to pay back an underwater mortgage. One Way to Avoid HOA Foreclosure in the First Place This story is a cautionary tale. Homeowners who have fallen behind on HOA dues have options. An Orlando foreclosure relief attorney can outline available forms of relief. One way to stay in your home is a bankruptcy. If your property is underwater, or you owe more on your mortgage than the value of your home, a Chapter 13 bankruptcy may be one way to stop the foreclosure and strip the association arrears....
by evolveAdmin | Jun 11, 2012 | Foreclosure Defense
Florida has been hit hard by the foreclosure crisis. Many in the Orlando area wonder when the glut of foreclosures will work their way through the system and home prices will stabilize. In March, Orlando experienced an increase of almost 50 percent in foreclosure filings. Florida had the second highest number of foreclosure filings in the country during the first quarter of 2012. The Orlando metro area reported 2,997 foreclosure filings in March. That means that one in every 314 homes had received a foreclosure-related filing. A foreclosure proceeding includes notices of default, auction notices and bank repossessions. However, a homeowner may be able to successfully fight foreclosure if the bank committed errors in the foreclosure process. Consulting an experienced foreclosure defense attorney is one way to find out whether any errors exist. Even if when the process has been handled correctly, other options are available. Some of the options that exist for those who are facing foreclosure include: Reinstatement Forbearance Loan modification Renting Bankruptcy, refinance and sale Each option has benefits and drawbacks. For example, reinstatement is one of the simplest options for those facing foreclosure. In a reinstatement, the homeowner only needs to request the amount that is due on that date, and does not need the lender’s approval to reinstate the mortgage. For a mortgage to be reinstated the homeowner must be able to pay the amount that is in default, usually several mortgage payments, and any fines or late fees. Homeowners can reinstate a mortgage up until the day before the foreclosure sale. The right course of action depends on your particular facts and situation. These options...
by evolveAdmin | Mar 20, 2012 | Foreclosure Defense
The last day of the Florida legislative session saw the quiet death of several bills that would speed the foreclosure process for some homes. The sponsors hope the legislation will help spur economic recovery in the state and plan to try again next session. Florida has suffered a heavy blow from the real estate crisis of the last few years. At times, it has been among the top states for mortgage delinquencies, foreclosures and falling real estate values. The real estate market has been crippled by a glut of foreclosed properties with an estimated 368,000 foreclosure cases working their way through the Florida courts. In February, RealtyTrac noted an increase of almost 53 percent for South Florida foreclosure filings compared with the same period in 2011. These properties in foreclosure inhibit the improvement of real estate prices. Uncertainty over when foreclosed properties will sell within a neighborhood, and at what price, depresses the selling price of all properties. An Added Burden on Borrowers Many consumer advocates complained that the proposed legislation to speed the foreclosure process limited consumer rights and reduced borrower protections in the case of wrongful foreclosures. The current language of the bill would speed the foreclosure process by allowing a bank or other lender to request a “show cause” hearing and receive an immediate ruling from a judge on whether a legitimate defense existed. The legislation also reduced the time a lender could seek to collect a deficiency balance on a foreclosed property from five years to one year. This was one provision that consumer advocates approved. Overall the proposed changes to Florida’s foreclosure law would have benefited the banks...
by evolveAdmin | Jan 30, 2012 | Foreclosure Defense
For one homeowner facing foreclosure in Winter Springs, the Judge tried to speed through the case and would not give him a chance to defend himself. This was because the Judge was scheduled to hear over 300 foreclosure cases in just three days. The Florida court system is struggling to manage a backlog of foreclosure cases. The overload resulted from an end to the funding that paid retired judges to hear the cases. Foreclosures have flooded the court system making foreclosure defense even more complicated. Florida Homeowners Fighting Foreclosure In 2007, the young professional had purchased his home in Winter Springs, but was now faced with foreclosure after losing his job. He had been able to pay his mortgage from savings for months while searching for employment. However, when his savings ran out, he could not make his mortgage payments. Then the bank filed for foreclosure. The system works the same for every resident: a foreclosure is filed with the court and the homeowner receives a summons and complaint. If the homeowner submits an answer to the complaint, then a court date is set and the court will make a decision after from hearing from both parties. However, when one judge hears 300 cases in three days very little time is spent on each case. Tips if Facing Foreclosure Steps can be taken to avoid becoming part of the foreclosure system. If you fall behind in mortgage payments, contact the mortgage company. Speak with the loss mitigation department to determine if restructuring options exist. If an agreement is reached over the phone, a written letter of confirmation should be completed and signed...
by evolveAdmin | Dec 16, 2011 | Foreclosure Defense
In December 2009, the Florida Supreme Court ordered that lenders and borrowers be allowed to file for pre-suit mediation prior to initiating the foreclosure process. This pre-suit mediation program, dubbed Residential Mortgage Foreclosure Mediation, fulfills Florida’s mediation requirement for all foreclosure matters and allows lenders and borrowers to voluntarily attempt to obtain a resolution. The goal of the program is to help homeowners keep their homes and give them a fresh start financially. The program was initially available only in state courts. However, in recent months the Federal Bankruptcy Court enlisted bankruptcy trustee Laurie Weatherford’s help in creating a similar program to help homeowners in the federal bankruptcy courts. Bankruptcy judges had grown concerned with the number of debtors who were entering their court rooms owing more on their mortgages then their properties were worth, and seriously behind on their mortgage payments. The federal program works in conjunction with Chapter 13 bankruptcy proceedings. Chapter 13 proceedings can often allow homeowners to keep their homes by working out a debt repayment plan with their creditors. How does the Mortgage Mediation Program Work? The program requires the borrower and lender to come together to work out a resolution. In the first stage, the lender and borrower select a mediator. Mediators are neutral parties who work with the lender and borrower toward a resolution. Once a mediator is chosen, the lender and borrower, and often the borrower’s attorney, sit down together and try to find a solution that keeps the homeowner in their home. Many times the lender will agree to modify the current mortgage. A mortgage modification often lowers the current interest rate on the...
