What to expect at a Florida Foreclosure Mediation
What to expect at a foreclosure case mediation?
The purpose of the mediation at its highest value is a loan modification for the borrower. All banks have different standards that borrowers are supposed to meet, and all banks offer different outcomes. Some are willing to reduce the principal and adjust it to market value (which is a great help for someone with an “upside down” house), others will work and reduce the interest, and some will work to re-distribute the delinquencies on a loan. Florida Mediations are great because they put the banks under a microscope, and it forces them to actually review the loan modification application. It is usually best to mediate the matter early in the case, to try to dispose of the case before extensive discovery is done, or prior to the matter being set for summary judgment or trial. In Miami Dade County, Florida if a property is your homestead, the parties are mandated to mediation. Even if the client fails to comply with the Court’s initial mediation, the parties can still agree to mediate at a later time and with a private mediator, which will usually yield results. Even if the client is not modified at the mediation, the mediation will speed up the loan modification process as again it will start the process, which will need to be finalized at some point during the pendency of the foreclosure action.
Ray Garcia, Esq.
Board Certified in Real Estate Law
by the Florida Bar
www.raygarcialaw.com
Ray Garcia Recognized in 2011 Florida Legal Elite
Attorney Ray Garcia of the was recently recognized in the 2011 edition of Florida Trend’s Florida Legal Elite™. Last fall, lawyers in Florida were asked by Florida Trend to name attorneys they hold in the highest regard or would recommend to others. Ballots were processed, checked and tabulated by a third party resource. The list of top vote-getters was further examined using membership status and practice histories provided by the Florida Bar. A panel of elite attorneys representing different practice areas in cities across the state, reviewed the selection process and the list of finalists. The resulting list represents approximately 2% of the more than 66,000 active Florida Bar members practicing in Florida. “Florida Trend is a leader in providing substantive rankings of exceptional attorneys as determined by peers. The Legal Elite peer review ranking provides highly reliable information on leading lawyers throughout Florida.” notes Florida Bar President, Scott Hawkins.
Benefits of a Deed in Lieu with a Waiver of Deficiency in Florida
As Florida homeowners, we are sometimes placed in situations where we are left in financial distress, questioning if thedecisions we’ve made are for better or for worse. We’ve all faced, or are facing what is known as the famous “fork in the road”. Well, let me tell you something! When it comes to that fork in the road in the world of mortgages, you may not have to wonder which direction to take any longer! If you are a Florida resident in a situation where you can no longer afford to pay your mortgage, consider contacting your lender to negotiate a deed in lieu of foreclosure with a waiver of the deficiency balance as it may be the best and most beneficial way to go. The process of a deed in lieu is when you sign the title of your home back over to the bank and no longer have to make the payments. The loan is then forgiven in response to giving the home back. This only means the benefits of a deed in lieu with a Waiver of Deficiency go a long way. If you can no longer afford to make payments, a deed in lieu with a waiver of deficiency may be your only option. And again, this situation can have its pros and cons. A deed in lieu of foreclosure does not always show on your credit score, giving you the chance to potentially purchase another home in the future! Don’t fall victim of foreclosure! And choose the best road for you, but always consult a Florida attorney before making your decision!
Ray Garcia, Esq.
Board Certified in Real Estate
By the Florida Bar
www.raygarcialaw.com
ROBO SIGNED DOCUMENTS, WILL IT MAKE IT’S IMPACT IN FLORIDA?
The ROBO signed documents may create legal trouble for homeowners for years. Mortgage documents are being invalidated by courts in Florida, furthermore, insurers are hesitant to write policies, and judges are blocking banks from foreclosing on certain homes based on the invalid documents. Some law firms are intentionally removing or withdrawing previously filed documents.
The issues with improper mortgage documents that have been labeled as “robo-signing,” have led some of the nation’s largest banks, including Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co., and other lenders to temporarily to freeze foreclosures nationwide last fall.
Initially, ”robo-signing” had been limited to the affidavits that the banks would file in support of their Motions for Summary Judgment during the foreclosure case. In Florida, the affidavit in support of the Motion for Summary Judgment is used to have the Court grant the Summary Judgment and enforce the banks right to foreclose the home.Lenders, services and trust managers allege that they were so overwhelmed with the volume of foreclosure filings and documents to review that they took shortcuts.
Some of the common issues that have led to the “Robo Signing” are executions of affidavits by individuals who did not review the files, execution by employees of the law firms who are representing the bank, improper notarizations and name by dozens of different people, improperly notarized or signed without a review of the facts in the paperwork and even affidavits that pertain to other loans.
Finally, the fall back of “Robo Signing” is huge because if the property is not properly foreclosed on, then the title insurance companies may not be willing to insure title to the property and then that will impact of real estate sales.
Ray Garcia, Esq.
Board Certified in Real Estate Law by the Florida Bar
OPTIONS WHEN IN FORECLOSURE IN MIAMI, FLORIDA
What options do I have if my house is being foreclosed? There are several options a person facing foreclosure might take. It mostly depends on what the person wants. For example, when I meet with clients for the first time, I usually inquire whether they are occupying the home, or whether they are renting the home. In Miami-Dade County, if a house is a homestead, the parties will be referred to mediation to review loss mitigation solutions. If the person is not occupying the home, mediation is not a requirement; however, the court may on its own discretion order mediation to see if there are any repayment plans which can be taken advantage of, to enable the person to keep the property, even for investment purposes. There are several loss mitigation solutions among them: short sales, deed in lieu, “cash for keys”, and loan modifications. All of these options can be offered by banks depending on several factors, like income, expenses, amount owed, use of the property and even the length of default. Before making a decision as to what approach you plan using, consult an attorney that specializes in real estate law
Ray Garcia, Esq.
Board Certified in Real Estate Law
By the Florida Bar
www.raygarcialaw.com
How a Loan Modification May Benefit YOU!
With the way the economy is on it’s major down fall, who wouldn’t enjoy less expenses? I mean, I know I would! And I’m sure you guys have heard your neighbors say the words “Loan Modification” at least once or twice then wondered what those two words meant. Well, don’t wonder any longer! Here’s how those two words may benefit YOU!
The Simple Basics of a Chapter 7 Bankruptcy in Florida
What are some benefits from filing a chapter 7 bankruptcy? Chapter 7 bankruptcy is one of the top forms of bankruptcy in Miami, Florida. A person may be considering bankruptcy because of harassing creditors, garnishment, repossession, foreclosure, lawsuits, illness or disability, loss of job/income, or divorce. Financial situations have changed all throughout the world and many people are unable to keep up with bills and payments they were once able to afford. Rather than being stressed with major bills piling up and marital problems arising, many find the best option being to file bankruptcy under this chapter, where the debtor can start new and receive a discharge of all owed debts.
A chapter 7 bankruptcy is generally filed by a person with a large amount of medical and credit card debts, does not have very much income, and does not own much property. The individual who would qualify for a chapter 7 bankruptcy would be a person with little or no assets, if you were to have many valuables, creditors could try and take those goods away. A bankruptcy allows you to discharge debts and bring families freedom from the stress they may be going through. After a couple of years of filing a bankruptcy you could be eligible for new loans, to start fresh. You could now realize what you are able to afford and not get stuck in a stressful situation. You can learn how to correctly manage money and not find yourself in a stressful financial situation again. You will be able to build your credit back up, and you will not hear the endless phone calls from creditors harassing you. If you are facing any wage garnishments, a chapter 7 bankruptcy would put an end to that, along with stopping any scheduled sale dates on a foreclosed home you may be losing. When you are finding it close to impossible to get by your day by day living expenses, and the situation you are finding yourself in may seem unbearable; a chapter 7 bankruptcy could be something you may want to consider.
Good News in Florida Loan Modifications for Homeowners serviced by Ocwen Financial Corp.
The Palm Beach Post in Florida had a very interesting article about the future loan modification plans of Ocwen Financial Corp. We quote the article as follows:
Lenders have long resisted cutting loan amounts for struggling homeowners, fearing it would entice more borrowers to default.
But one locally based servicer, Ocwen Financial Corp., believes it has found a solution.
The company is rolling out a new loan modification plan for underwater borrowers that lowers the amount owed on the loan – thus reducing the monthly payment – but asks for a share in the appreciated value when the house is either sold or refinanced.
The kickback to the lender may deter people who can afford to make their payments from defaulting, while giving an incentive to either the lender or investor to modify the loan.
“We think this answers some of the critics who say that by reducing principal, you are rewarding imprudent borrowing behavior,” said Ocwen Executive Vice President Paul Koches. “What we see is unprecedented delinquencies, and we’re doing our best to resolve them
Seven Hardship Situations Lenders Consider Valid
1. Payment Increase
Your mortgage payment has increased substantially from one month to the other. It was a shock to realize that your payments would adjust to the amount that they have reached, or, if you did realize they would, you could not reasonably foresee the catastrophic economic effects of the mortgage crisis on the economy. Another devastating reality is that your home value has fallen so drastically, it has diminished your options, such as refinancing the loan. Ramifications from this situation have caused severe economic depression in your business community, and due to the real estate collapse and its far reaching effects on lending, it has left you financially unable to recover.
2. Job Loss/Layoffs/Pay Reductions
Be sure to include your spouse and/or any person who normally contributes to your monthly household income. Review your pay stubs and hours worked. Gather any and all memos or notices received from your employer detailing your layoff or reduction in pay. Carefully note income declines over the last 1-2 years, and note the events which caused it, and the effects this has had on your economic situation and family.
3. Underemployment
Recently obtained employment pays you significantly less than your recent job. The economic down turn has had a serious impact on the current salary your new employer is willing to pay you. If you owned your own business, and suffered a significant loss of revenue, or lost your business all together, make certain you explain the situation to the Bank in great detail and have documentation readily available in case they request it. It is important that you reassure the bank that although you have lost a substantial amount of revenue or lost your business, you have the ability to reasonably sustain a regular monthly payment of a lower dollar amount.
4. Declining Business or Revenue
Sales are down. If you own your own business, are self employed, work for commissions, bonuses or tips, or earn income in any way other than as a company employee receiving a regular paycheck, and your income has decreased. A detailed profit and loss report prepared by a certified accountant will help you detail your economic losses to the Bank.
5. Illness/Injury
There are undisclosed yet obvious stress related effects of financial stress: clinical depression, marital estrangement, and increased alcohol and drug dependency and abuse. People can’t cope, so they start checking out. Subtly, these problems wipe out the very tools they need to survive financially. The physical, emotional, and psychological strain on people due to the financial crisis has worsened under the mortgage crisis. This has also contributed to higher medical expenses, attributing to the inability to pay their mortgages. A sick loved one, a death in the family, or a child with special needs can also take a financial tool on the family. Note that the Bank will take all of these circumstances into consideration, but ultimately your Lender wants a sense of security that you have a steady income to support a loan modification despite your obstacles.
6. Divorce/Separation
Divorce is a financial wipeout. Most married couples experience financial strain – rich or poor – it is common. In these times, two heads are definitely better than one. If there is any way you can postpone divorce, swallow your pride and hang in there. Couples in divorce nowadays are faced with a rude awakening – their homes are worth less than their mortgages. For many, if not most , divorce now is a splitting of debts – not of assets. Financial survival dictates that couples stay together if possible. Divorce can mean financial suicide. Two incomes can mean having a home vs. not having a home. Nevertheless, if you have been divorces or separated, you have a definite financial hardship. Be prepared to provide the Bank a copy of your divorce settlement.
7. Disaster
Fires, auto accidents, floods – any act of God, whether insured, uninsured, or partially insured. Setbacks to your cash-flow, or ability to generate cash flow are valid hardships.
Cash for Keys
The program called “Cash for Keys Program” is probably the best-kept secret in the banking industry. This program is probably offered by 90% of lenders but, lenders never offer you this program if you don’t ask about the program. The program is simple pay the homeowner to leave his home with the condition that they leave all fixtures in the property. It makes it easier for both parties; the bank has an easier re-sale having the fixtures and the homeowner does not have to come out of pocket for moving expenses.
Mainly homeowners who deal with the bank’s realtors never hear about this program. The bank’s realtors have the authority to offer the money, but never do unless the homeowners request for it. The usual result is that the realtor never really has a chance to speak with the homeowner before he is evicted so, the properties are stripped from all fixtures, appliances, A/C units, copper water pipes, cabinets and sometimes even the electrical wiring in the walls.
The Cash for Keys Program can happen after the lender agrees to accept a Deed in Lieu of Foreclosure or by an eviction after the foreclosure sale. In other words, the homeowner must ask for the money or never hear about it. So, it is in your hands to ask the realtor that contacted you, or the Bank representative that is calling you about the program. If they say they don’t offer it, I would get a second opinion from another representative or supervisor.
The amount of money varies in all cases. At many times agents are instructed to start as low as possible, sometimes even as low as local value of one month’s rent. In some occasions lenders have paid up to $4,000 if appliances and fixtures were in.
It is a simple decision just like the lender decided to foreclose on you. Now it is your turn to get some control back. In conclusion, if you are offered the program do not leave the property until the money they offered you is in your hands.
