Short Sale Misconceptions in Florida
A short sale allows a homeowner to sell a home where more is owed than what it is worth. Unfortunately, many short sale misconceptions have developed. It is important to clarify these misconceptions.
Misconception #1 – Banks would rather foreclose than work with a short sale.
The reality is that the foreclosure process in Florida can be extremely costly for banks. Banks would rather work with homeowners who are experiencing financial hardship and help them process a short sale rather than foreclose on their property.
Misconception #2 - A short sale is lengthy in time and I cannot process one before my home goes into foreclosure.
In Florida, foreclosure is a process, and there is plenty of time to make a better decision than to fall into a foreclosure. The foreclosing party, or bank/lender, will be able to stop the foreclosure process up to the final day. A phone call to your bank/lender can go a long away.
Misconception #3 – Short sales in Florida are hard to get approved.
This is definitely not the case. While it can be a painstakingly long and grueling process, the reality is short sales are not impossible and do occur on a regular basis in today’s housing market. A qualified attorney or real estate agent can be a big aid in making sure your short sale is approved.
Misconception #4 – Buyers are not interested in short sale properties in Florida.
This is not the case at all. On the contrary, most real estate agents can’t find enough short sale properties to show their buyers. The perception from the public is that if it is a short sale, it must be a good deal.
In conclusion, always seek the help of qualified Florida attorney when diving into the short sale market. In the end, their expertise can be the difference between getting approved or being declined.
Ray Garcia, Esq.
Board Certified in Real Estate Law
By the Florida Bar
Foreclosure Lawsuits by Lender Now Employ an Order to Show Cause
Florida Statute 702.10 was enacted to allow foreclosure Lenders a procedure by which they may attempt to expedite the foreclosure process when they serve the homeowner with a foreclosure lawsuit. Following the procedure of Florida Statute 702.10, once the Lender serves you with a foreclosure lawsuit, the Lender must file a motion for an Order to Show Cause and then the Court will enter an Order requiring the homeowner to appear in court and contest why a Final Judgment of Foreclosure should not be entered. Foreclosure Lenders have been trying to employ this procedure more often as of late; however, most do not correctly follow the procedure set forth in Florida Statute 702.10.
Under the plain language of Florida Statute 702.10, an Order to Show Cause can only be entered when the foreclosure Lenders file a “verified” pleading. Even though Florida Rules of Civil Procedure 1.110(b) permits foreclosure pleadings to be verified on “knowledge and belief,” that is not the same verification requirement as in Florida Statute 702.10. For a foreclosure Lender to be able to employ the expedited process set forth in Florida Statute 702.10, the pleading must be verified in the manner set forth by Florida Statute 92.525, which is under penalty of perjury.
The foregoing analysis might appear to be in direct conflict with the Second District’s recent rulings on verification, which allow foreclosure pleadings to be verified on “knowledge and belief.” However, the Second District’s recent rulings dealt with the verification obligations in the normal, run-of-the-mill case, not the expedited procedure set forth in Florida Statute 702.10. Because of the technical nature of Florida Statute 702.10, it is recommend that you immediately contact an attorney once you are served with a foreclosure complaint. You may also contact our office at 305-227-4030 for more information.
Ray Garcia, Esq,
Board Certified in Real Estate Law
By the Florida Bar
FHFA New Streamlined Modification Program
The Federal Housing Finance Agency (FHFA) today announced that Fannie Mae and
Freddie Mac will offer a new, simplified loan modification initiative to
minimize losses and to help troubled borrowers avoid foreclosure and stay in
their homes. Beginning July 1 2013, servicers will be required to offer
eligible borrowers who are at least 90 days delinquent on their mortgage an
easy way to lower their monthly payments and modify their mortgage without
requiring financial or hardship documentation.
The new Streamlined Modification Initiative eliminates the administrative barriers
associated with document collection and evaluation. Eligible borrowers must
demonstrate a willingness and ability to pay by making three on-time trial
payments, after which the mortgage will be permanently modified. Homeowners are
encouraged to continue working with their servicer to evaluate all of their
foreclosure prevention options. Documenting income and financial hardship could
result in a modification with additional savings for the borrower.
The Streamlined Modification Initiative builds on the principles of the Servicing
Alignment Initiative by encouraging servicers to resolve delinquencies earlier
and in a more consistent and expeditious manner to keep more people in their
homes and to minimize losses to Fannie Mae, Freddie Mac and taxpayers. The
program expires August 1, 2015.
The program is available to those homeowners with loans owned or guaranteed by
Fannie Mae or Freddie Mac. Since being placed into conservatorships, Fannie Mae
and Freddie Mac have completed 2.7 million foreclosure prevention transactions,
including 1.3 million loan modifications. We surely want fewer people foreclosed
and if there’s a way to modify mortgages that makes financial sense for both
lenders and borrowers then you should contact our office at 305-227-4030 to
discuss the matter further.
Ray Garcia, Esq.
Board Certified in Real Estate Law
By The Florida Bar
Foreclosure Situation is Not Getting any Better
Although the housing market is showing signs of recovery, other indicators show the foreclosure crisis is getting worse. In a September interview with U.S. News, Austan Goolsbee, the former chairman of the Council of Economic Advisers, said, “I think there’s a lot wrong in the housing market. If Fannie and Freddie would start enabling people to rent out the vacant homes, that would also help.”
Some interesting foreclosure facts:
1. The mortgage loans which are currently under the foreclosure process, is amounting to almost $45 billion (that is mainly in terms with negative equity)
2. Almost close to 140,000 numbers of homeowners has received at least one or the other type of mortgage debt relief, with respect to the mortgage settlement program, averaging to around $76,615 amount every person.–More than almost 12 million homeowners are currently considered to be underwater, who are still making payments
3. There are more than 1.5 million of the homeowners, who are at least 50 years or even older and may have lost the home to foreclosure, since the year 2007, when the mortgage crisis actually began
4. The government has monitored the settlement program, and has reported that the 5 most significant banks has provided around $10.6 billion in total, as the aid money starting from only from March 1 through that of June 30.
5. Since the year 2010, almost 270 churches have gotten sold off, after they have defaulted on the mortgage loan payments, and the 90 percent of the home sales resulted after foreclosure chain which was triggered off by the lenders
President Barack Obama is planning to bring on a mortgage refinancing plan, which may help alleviate the foreclosure crisis. It’s aimed mainly the working and the middle class to equip them with better mortgage management. Obama has said that, though the housing market has been recovering, it is going “to take a while for our housing market to fully recover.” He has also claimed that the refinance plan, which he is urging Congress to pass, would help responsible homeowners to save at least around $3,000 per year simply through refinancing their homes at low interest rates. This in return may help with the recovery of the economic situation of the nation. It can also potentially help improve the job market. Yet market watchers aren’t feeling confident the plan will get passed by Congress.
The issue derives from the fact that the foreclosure problem has ballooned to the point that even home-mortgage modification programs are proving to be falling short. The Federal Housing Finance Agency, under the supervision of mortgage giants Fannie Mae and Freddie Mac, introduced a pilot program at the beginning of this year aimed at helping the foreclosed homes, but it appears to lack efficacy.
The mortgage foreclosure crisis is weighing heavily not only on the minds of homeowners who may have just started a family but on the minds of people thinking about retirement. As home values depreciate, financial assets are folks nearing retirement take a hit.
Additionally, multiple factors are exacerbating the problems for homeowners, one of the largest of which is the home equity issue. After the housing crisis and the recession, home equities dipped even more, pushing a large number of homeowners toward the edge of foreclosure. This is contributing to worsening issues with regards to the real estate market. In general, the value of a home risse with the passage of time, which serves as the biggest form of savings for homeowners. When it doesn’t happen, the people planning to secure their retirement may lose confidence in retiring happily.
Another problem is affordability. Brandon Moore, CEO of RealtyTrac, said in a July interview with U.S. News that “40 million Americans choose to pay a mortgage every month and even if just a small fraction of those choose not to do so, things can compound and get much worse pretty quickly.” So even if the financial situations of some people have improved, it may not prove to be helpful enough for the housing market as a whole.
More than 12 million Americans are stuck with underwater mortgages. Although the majority of these people are still making their minimum monthly payments, there are strong chances that these homeowners are going to run into serious trouble.
Ray Garcia, Esq.
Board Certified in Real Estate Law
by the Florida Bar
www.raygarcialaw.com
SHORT SALES IN FLORIDA
Short sales in Florida occur when a homeowner who can no longer afford to pay for their mortgage may avoid foreclosure and get out of the debt with minimal financial damage by he selling the property for less than the mortgage amount. Since the lender must accept less than what they are owed in order for a short sale to be approved, it is the lender’s decision whether or not to accept the short sale offer proposed by the homeowner. But, there are certain things a homeowner can do to improve his chances of having the lender accept the short sale offer. For example, Lenders want the homeowners to produce a listing agreement with a Florida licensed realtor. Lenders also want to see proof that the property has been placed on the multiple listings. Additionaly, it is recommended that the short sale offer be consistent with the property’s market value. Short sales are common in Florida, and approaching your lender regarding having your property sold in this manner is a great idea if you want to get out of the debt. In Florida, mortgage lenders are accustomed to short sales and will be able to work with you and explain their policy regarding such property sales. Consulting a Florida attorney who is experience in dealing with Short Sales is the best approach when faced with this situation.
Ray Garcia, Esq.
Board Certified in Real Estate Law
by the Florida Bar
www.raygarcialaw.com
New Home Affordable Modification Program (HAMP) Guidelines and Qualification
These last few years have had many homeowners default on their mortgage. If you are one of them, you should look into the various options you may have available to you to resolve this matter. If you are employed with income coming in monthly indefinitely you may be eligible for a Home Affordable Modification Program (HAMP). If you are eligible for HAMP you may receive lower mortgage payments which can help you afford your loan in order to be able to keep your home. Effective June 1, 2012 the Obama Administration expanded the requirements in which a person may qualify for HAMP. Now included:
• Homeowners who are applying for a modification on a rental property
• Homeowners who once were not eligible for HAMP
• Homeowners who received a Trial Period Plan but defaulted on their payments
• Homeowners who received a HAMP permanent modification but defaulted on their payments
If you are a homeowner who meets any of the above-mentioned criteria you should speak to your mortgage servicer and begin your HAMP evaluation process before giving up on your home. If you have a second mortgage and have quailed for HAMP you may also qualify for Second Lien Modification Program (2MP). 2MP may provide you with a long term solution in regards to affordability and sustainability.
Ray Garcia, Esq.
Board Certified in Real Estate Law
by the Florida Bar
AV Rated by Martindale Hubbell
www.raygarcialaw.com
What can you expect after filing bankruptcy?
So, you cannot pay your mortgage anymore, you have maxed out all your credit cards and you are receiving non- stop phone calls from creditors. What do you do?
Filing for bankruptcy could put an end to all of that.
Are you concerned that you will never have credit again? Many people are. Many people are concerned with filing bankruptcy because they believe they will never have credit again and it will negatively impact their future, however that is completely wrong! Bankruptcy will appear on your credit report for a certain numbers years, but that does not mean that you cannot obtain credit after filing bankrupt. Typically, creditors and lenders are willing to give credit within three or four years after filing bankruptcy. Many creditors and lenders are willing to give credit to someone, although they have filed bankruptcy, because that person has few debts and that person will not be able to file for bankruptcy until eight years have passed.
You are considering filing for bankruptcy, but are concerned it may prevent you from finding employment?
Many people feel that employers may not consider hiring you because it shows you have filed a bankruptcy. It is ILLEGAL for your current employer or for any form of government employers to discriminate against you because you have filed bankruptcy. Filing for bankruptcy will not affect any professional licenses in Florida you may have either.
You need to file for bankruptcy, but are concerned it will affect the mortgage modification process you are currently in? If you are applying under the government’s Home Affordable Modification Program also known as “HAMP”, do not think they will deny you simply because you have filed a bankruptcy because you will still be considered equally for a HAMP modification. The government’s HAMP cannot deny you a modification simply because you have filed bankruptcy. Additionally, if you are currently a Borrower who has received a trial modification you cannot be denied a permanent modification, just because you have filed for bankruptcy.
If filing bankruptcy is something you are considering, please do not hesitate to contact our office at 305-227-4030 for a free consultation.
ROBOSIGNERS! the who’s and What’s of the mortgage industry
The following article discusses two important aspects of the Robosigners in the mortgage industry. First, we have prepared a list of known Robosigners. There is no specific order to this list. Secondly, we have prepared a check-list of what to look for when trying to determine if an assignment or affidavit is fraudulent.
The following list are the names of some individuals who sign assignments of mortgages for banks and affidavits for the mortgage companies for a fee, they are not actually involved with the loans and normally they are listed as officers or employees of the banks they sign for.
Janette Boatman, John Cody, Christopher Bray, Micheal Koch, Rodney Cadwell, Sarah Block, Joe Bueno, Tamara Price, Tammy Saleh, Paul Hunt, Yvette Day, Jose Bueno, Bernice Thell, Steven Kane, Scott Anderson Dorey Coebel, Sarah Rubin, Amy Payment, Joseph Alvarado, Pam Anderson, Sheri Bongaarts, Jason Dreher, Tammy Brooks-Saleh, Etsuko Kabeya,Teresa Debaker, Jacqueline Brown, Peggy Glass, Paul Bruha, lindsey Lesch, Hari Charagundla, Robyn Colburn, Frank Coon, Cathy Hagstrom, Julie Coon, Jeremy Cox, Larry Dingmann, Kimbretta Duncan, Salina Edwards, Fedelis Fondunghallah, Fanessa Fuller, Elizabeth Gereschlaeger, Steven Grout, Jamil Kahin, Pam Kammerer, Gloria Karau, Scott Keller, Kyurstina Lawton, Whittney Lewis, Brock Martin, Joel Martinson, Donna Mc Nahght, Marisa Menza, Steve Moe, Toylor Moore, Annmarie Morrison, Melissa Mosloski, Kim Mullins, Susan Nigtingale, Richard Olasande,Ingrid Pittman, Rona Ramos, Paige Sahr, Kimberly Sanford, Erica Spencer, Renae Stanton, Maya Stevenson, Maya Stevenson, September Stoudemire,Emmanuel Tabot, Kae Maney Kue Vang, Rebecca Verdeja, Kim Waldroff, Katrina Whitfield-Bailey, Katrina Whitfield, Jerry Yang, Mellisa Ziertman, Katie Zrust, Roy Stringfellow, Amie Davis, Andrew Keardy, Tina Jones, Jamie Bilot, Vicki Kyle, Bernadette Polux, Charmaine Marchesi, Verdine A. Freeman, Lang Luu, Vishal Karingada, Dulce Diaz, Michele Boiko, Eileen J. Gonzales, Jeff Rivas, Marcia Medley, Laura Hescott, Treva Moreland, Kim Kinney, Peter Read, Judith Stone, Shivani L. Ram, Amy Jo Cauthern-Munoz, Dawn L. Reynolds, Sara Rubin, Bharati Lengade, Melony Moore, Angela L. Freckman, Kim Kinney, Jennifer Duncan, Jann Zimmerman, Steve Ballman, Anne Sutcliffe, Judy Faber, Martha Kunkie, Natalie Anderson, Scott Anderson, Joseph Lutz, Varsha Thakka, Denise A. Marvel, Michael Hanna, Ann Pinto, Toccoa Lenair, Vinod Vishwakakarma, Leticia Arias, Mutra Kumar, Sukhada Lad, Richard delgado, Fifi Volgarakis, Silvia Marchan, Sue Filiczkowski, Janice M. Baker, Aimee Austin, Keith Chapman, Neil. E Dyson, Renee L. Hensley, Joseph P. Hillery, Robert E. Kaltenbach, Brian J. LaForest, Michael H. Moreland, Steve A. Neilsen, Keith S. Reno, Margery A. Rotundo,
Strongly question the truthfulness and integrity of any assignment or affidavit signed by any of the Robosigners identified above.
The following is a list of criteria’s to look for when trying to determine whether the assignment or affidavit is fraudulent.
1.The document was notarized in Dakota County, Minnesota, or in Hinnepin County MN, or in Duval County Florida or in San Diego CA.
2.The document was executed the same day of the court filing.
3.Party signed as authorized agent, or attorney in fact for servicer or creditor or MERS.
4.Name of servicer or creditor is stamped in block letters.
5.Document appears to be a standard form with fill in the blanks for names and signors.
6.Paragraph numbers are not consistant
7.Party and Notary are the same person
8.Name of signor is not readable.
9.The signature of signor consists of loop in the form of an S or an 8
10.The dates of the signor as stated and the date of the notary are different.
11.The signor is the vice president of many banks
12.Contains many stamped names and dates.
13.The doucument has a last page or another page and the fonts are different.
14.Backdating of dates when the company or bank is out of business
15.Officers of MERS are signors.
16.The party signing is a representative of the servicer.
17.No notary seal.
18.No notary signature.
19.Name of party appearing before notary is blank.
20.Endorsement is in the form of an allonge, when there is room on the note to place endorsement.
21.Document is signed say June first 2008, but effective April 1, 2005.
22.The document pretents to name the trust as the owner signed by an agent for the originator by the servicer.
23.The mortgage is assigned, rather than endorsed from one party to a next.
24.The mortgage is endorsed from the originator to a trust.
25.The affidavit is a lost note affidavit.
26.The affidavit was signed by the same attorney who signed the complaint.
If any of these items are present in the affidavit or assignment that you are reviewing contact an attorney to disucss the matter further.
Ray Garcia, Esq.
Board Certified in Real Estate Law
by the Florida Bar
www.raygarcialaw.com
FORECLOSURE FRAUD AND THE $25 BILLION NATIONAL MORTGAGE SETTLEMENT
The record $25 Billion Dollar National Mortgage Settlement Agreement signed earlier this year involved 5 big lenders. According to recent reports, the Federal Reserve is now adding another 8 to the list.
According to officials 8 firms will be faced with fines and penalties due to flaws and irregularities. They include the following:
-SunTrust Bank
-HSBC
-EverBank
-MetLife
-Goldman Sachs
-OneWest
-US BankCorp
- PNC Financial Services
The addition on Goldman Sachs was surprising to many considering Goldman Sachs never played a major role in the mortgage processing industry. Goldman Sachs, actually, sold its loan processing unit (called Litton Servicing Loan LP) to Ocwen Financial Corp. in 2011 for about $264 million (after a $200 million write-off, loss taken by GS).
After the country’s downfall, Goldman Sachs was actually one of the firms thought to be unscathed in the foreclosure crisis. Other firms that did sink in the crisis either disappeared or were penalized (like Lemah Brothers and Bear Sterns or the Big Five). Goldman Sachs actually continued to turn in staggering profits with merely any legal trouble from feds or state governments.
Goldman Sachs did leave itself “open to future penalties” and fines due to its role in creating wrongful foreclosure properties across the country when it sold Litton Loan Servicing. This leaves a case open to penalties that may come close to – but probably not meet or exceed- the fines against JPMorgan Chase, et al., in the original agreement.
How much are these eight (8) firms expected to pay in fines, write downs, and other credit obligation? The Big Five, each, owed on average about $5 billion. These eight (8) firms though are much smaller (by revenue and total assets), so the amount of money would be exponentially less. Also the percentage of wrongful foreclosed homes caused by these eight firms is no-where near the amount of wrongful foreclosure caused by the Big Five, which is by these firms were not targeted earlier.
Ray Garcia, Esq.
Board certified in Real Estate Law
By the Florida Bar
www.raygarcialaw.com
BANKRUPTCY MAY ASSIST IN FINANCIAL STRESS
Bankruptcy is an option for some people who are overwhelmed by their debt. At times, stress is caused from debt related issues. This stress can lead to illness, loss of employment or even divorces. One could possibly avoid all the above mentioned issues by relieving their stress. Many times, filing bankruptcy is ones best option. It is important to understand filing for bankruptcy is not the end of the world. Filing bankruptcy provides an opportunity for one to repair and build credit. When filing a Chapter 7 bankruptcy all your debt is discharged, allowing you the opportunity to start fresh. In this economy, many people need the opportunity to start over.
In Florida, there are certain exemptions for residents who have lived in Florida over two (2) years. These exemptions would include the following:
Homestead exemption: A home which you own is considered ones homestead. If you wish to continue living in your home, you are “retaining” your homestead. Retaining your homestead allows you to exempt all of the equity in it, if in fact there is equity in the property.
Personal property exemption: In Florida, a person filing bankruptcy is allowed $1,000 in personal property if you are claiming your homestead exemption or $4,000 in personal property if you are not claiming your homestead exemption.
Vehicle exemption: In Florida, a personal filing bankruptcy is allowed $1,000.00 in exemption for a vehicle. If you do not use the total personal property exemption allowed, one may then use the balance towards the vehicle.
Retirement/Life Insurance benefits: Are 100% exempt in a bankruptcy, meaning that money will not be a part of the bankruptcy estate, meaning no one will touch your money.
Some debt that would not be dischargeable in a bankruptcy would include:
Student loans
Income taxes that are LESS than three (3) years old
Child support dues and/or divorce settlements
When considering this option, it is important to have an attorney whom you trust and feel comfortable with. If you have any questions concerning this matter, please feel free to contact the Law Office of Ray Garcia, P.A. for a free consultation at 305-227-4030.
Ray Garcia, Esq.
Board Certified in Real Estate Law
By the Florida Bar
www.raygarcialaw.com
