Miami Lawyer Blog

Sports and Entertainment law is a specific branch of law that focuses on the rights of athletes and actors as well as laws such as copyright infringement and anti-trust laws. If you are in the sports or entertainment field and believe your rights have been infringed upon, contact a Miami Sports and Entertainment lawyer to represent you. What type of cases would a Miami sports and entertainment lawyer take on? Consider the recent troubles the NHL is having in Glendale Arizona over the sale of the Phoenix Coyotes.

The city of Glendale is likely going to have to pay out over twenty five million dollars if the sale of the NHL team cannot be finalized very soon. The agreement between the NHL and possible owners and the city of Glendale stated that the new owners would pay the twenty five million dollars the city had promised to the NHL in order to cover financial losses for the team's last season. Glendale pulled the money out of an account set aside to repair utilities in the city. Residents of Glendale were promised the money would not be spent if the team was kept in the suburban city. The purchase is currently being blocked by a watch dog group who opposes parts of the agreement which include a nearly $100 million dollar payment to the new owner for managing the team's arena. The group insists the money being used in the payment is public money and using it would be a violation of state laws. In addition, I in the latest agreement, the new owner will not be covering the twenty five million the city of Glendale is responsible for. The payment is only a portion of the teams losses for the previous season. The NHL recently sent the bill for the city's share of the teams financial losses and is requiring payment in less than a week. Currently the prospective owner and the NHL are not commenting on the case and there does not seem likely that there will be a resolution any time soon. If an deal cannot be made quickly, it could leave Glendale taxpayers forking over a huge sum of money for a team that may not stay there.

This type of case has a lot of money at stake as well as local jobs an revenue for a suburban city. Does the so called "watch dog" group have the right to block the sale? And is taxpayer's money being used to fund the sale? A Miami sports and entertainment lawyer deals with cases like these. With millions of dollars hanging in the balance, not hiring a lawyer is a huge mistake. A Miami sports and entertainment lawyer can protect your rights and your money.

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Glendale on the hook for $25-million, by David Shoalts April 28th 2011

The rate of bankruptcy filings are falling for South Floridians, but what does that really mean for Miami residents? While the number of bankruptcies being filed each month might be down in Miami, it does not mean that many Miami residents are not still struggling. As hundreds of local residents still struggle to make their mortgage payments each month and credit card and medical bills pile up in mail boxes, bankruptcy is still a very real issue for many people. So how are bankruptcy filings slowing down while Miami residents are still struggling to pay their bills and feed their families on a daily basis? Unfortunately, many residents are still having problems making ends meet, even as the nation begins its slow recovery from the recession. If you and your family are having issues paying your day to day to bills, contact a Miami bankruptcy lawyer who can help you consider you options.

Miami and south Florida residents filed a total of 2,008 personal bankruptcy petitions in March, which is actually down over 300 listings from February, according recent information that was released from the United States Bankruptcy Court in Miami. Compare those recent numbers with the rates of just a year ago, and it turns out that consumer bankruptcies have fallen a total of 32 percent from March of 2010 with a total of 2,969 bankruptcies filed. In Broward county, which is very close to Miami, a total of 680 personal bankruptcies were filed in March of 2010, compared with a total of 799 in February of the last year. Palm Beach county reported a total of just 349 bankruptcy petitions filed, and that number is down from a little over 400 in February of just last year. Miami Dade county as a whole reported almost 1000 residents who filed for bankruptcy, which is less than the nearly 1,200 just a month ago. That means that over all, Miami bankruptcy filings are falling. What does that mean for local residents?

Filing for bankruptcy is a very difficult decision for any person to make. It means a lower credit score, difficulty borrowing money and possibly trouble getting a new job. Bankruptcy is not a simple process to fix a problem of over spending. If you are financially over extended due to medical bills you feel you can never afford to pay, or under water on a mortgage or have other bills you do not feel you can ever pay off, you should contact a Miami bankruptcy attorney to set up a consultation.

Local Miami bankruptcy lawyers insist the flow of foreclosure petitions in southern Florida has slowed as home foreclosures have stalled in Florida courts due to paper work issues. However, if you are at risk of bankruptcy in south Florida, there are actually many different options available to you. A Miami bankruptcy attorney can help you determine what you options might be. Politics and finances still control many of the issues surrounding bankruptcy and foreclosure.

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March bankruptcies fall 32 percent from last year, by Marcia Heroux Pounds, Sun Sentinel, April 13, 2011

If your company is having issues with financial problems or has been accused of employment discrimination you should not try to face these accusations alone. A single accusation of financial misdeeds or employment issues can sink a small company and cause severe financial distress for even a large company. Contact a commercial litigation lawyer in Miami if your company is facing legal issues. You should be focusing on the day to day needs of your business, not fighting in court. A commercial litigation lawyer in Miami knows Florida laws and can protect your interests. Consider this recent case regarding Border's attempts to restructure.

A bankruptcy judge stated that book seller Borders must make changes its mulit-million dollar bonus plan which is meant to keep high ranking executives as the firm tries to reorganize itself. However, the court hearing ended without reaching any set agreement. This could mean big trouble for Borders

Border's plan was recently changed so top executives would receive bonuses based only based upon how much money they manage to recover to pay off debts, either through restructuring on the sale of the company. The creditors, who are mostly book publishers, supported the new plan after opposing the original plan. The companies Borders is in debt to has agreed to the proposed plan under the condition that no executives get paid unless Borders manages to recover enough cash for creditors. If Borders cannot afford to pay off some of its debts, no managers or executives will get their bonuses.

The courts insists setting the bonuses was a premature move because Borders has only been in Chapter 11 bankruptcy for a couple of months and has yet to show how they will be able to repay their creditors. The bookseller has plans to meet with a trustee to in order to demonstrate how the new plan is in the best interest of everyone involved. Borders sought to pay over six million dollars to 15 different executives, and over one million dollars to 25 director managers who Border's insists are critical to the company's ability to move on from Chapter 11 bankruptcy and profit in the future. This revised plan will create a sliding scale of bonuses for the executives based upon how much money they are able to pay their debtors and provides none if the company is liquidated. The bonus plan must be figured out quickly because retail companies, in particular, must move quickly to restructure them selves and pay off their debts in order to avoid liquidation.

It would be very difficult to replace high ranking officials in charge of day-to-day operations in the middle of the reorganization process, Border's officials say. As Border's is fighting to stay in business and pay its employees at a fair rate, it is their commercial litigation lawyers who are doing the fighting. You know how to run your business, and a Commercial litigation lawyer in Miami knows how to keep you there. Do not face your legal issues alone, a Miami commercial litigation lawyer can help you.

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Borders must revamp bonuses, by Detroit News Staff and Wire, Aprl 15th 2011

Foreclosures are dropping in South Florida, but a change in laws and the settlement of issues with the filing of Florida foreclosures has changed the landscape of foreclosure. Contact a Miami foreclosure lawyer if you think that filing for foreclosure is an option for your situation.

Foreclosures rates have plummeted in South Florida and throughout the country at the start of 2011, but do not make the mistake of taking this as a sign of a rebounding housing market , RealtyTrac Inc. said recently. It seems that the amount of foreclosure instances are dropping due to foreclosure delay in processing are believed to have been caused by "robo signer" lawsuits raised last year, according to the well known foreclosure listing firm.

A RealtyTrac spokesman says they expected numbers to come back up in the first part of the year, but instead are facing the fact that this is a much larger problem than they expected. In fact, experts expect foreclosure activity is likely to increase towards the end of 2011 as lenders clear up the problems and then get to work filing foreclosure cases that have been on hold since the issue was first raised.

Broward county had 6,876 local properties in foreclosure, which is a shocking 68 percent less than the first part of 2010. Palm Beach County had 4,734 homeowners in the process of foreclosure, down almost 60 percent from the same period of last year. Florida's over all foreclosure activity is down over 60 percent from last year. But at the same time, the state ranked number eight in nation's largest foreclosure filings. Nationwide, foreclosure filings fell to the lowest rate in three years in the first few months of the year. They dropped almost 30 percent during the same period of last year. RealtyTrac said.

Lewis Goodkin, a South Florida housing analyst for several years does not expect there to be any change in the rate of foreclosures. Even though employment rates are just starting to rise, drops in housing prices in the last half-decade have left many homeowners upside down on their mortgages, owing far more on their loans than the properties are worth. Many of these people have decided to walk away from their homes and add to the number of foreclosures on the market. Goodkin insists that mortgage lenders should lessen strict lending requirements that result in making it impossible for the average home buyer to purchase the distressed homes which would help the market recover. Lenders must now hire consultants to figure out if foreclosures were improperly initiated, and then banks also must also decide how to provide restitution to affected homeowners.

Housing experts believe this agreement might make mortgage companies consider working to help homeowners obtain a loan modification or short sale that would likely reduce the number of foreclosures.

As the housing market that continues to change, you need a Miami foreclosure lawyer on your side. The laws change nearly daily, and only a Miami foreclosure lawyer can help you figure out your options. If you think that you are at risk of foreclosure, make sure you do not try to weather the storm on your own.

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South Florida foreclosures fall in first quarter, by Paul Owers, April14th 2011

If you are struggling to make your mortgage payment in Miami Dade county, contact a Miami foreclosure lawyer to help you decide what your options are. Selling prices are down in Miami, making it more difficult to simply sell a home you cannot afford and move on. A Miami foreclosure lawyer know the laws in Florida and can help you reach the best solution to your problem.

Home sellers in Miami are being forced to slash their asking prices in order to entice buyers, according to a report released by a respected real estate research firm. In their survey of the largest cities in the nation, the city of Miami ranked second in the size of the average home discount, with sellers dropping their prices by more than ten percent in the last year. A local Miami-based Realtor, said sellers are being forced to face the fact that foreclosures and short sales have dropped housing prices across the region, which has the result wiping any equity that might have survived the housing crash. If homeowners want to sell their homes, they will have no choice but to slash prices. Distressed sales, which refers to homes sold other than through normal practices such as foreclosures and short sales are the particularly popular among Miami buyers, accounting for more than half of all sales this year. The research firm also says there is nearly a 40 percent chance that a person trying to sell a Miami home will be forced to drop their price several times in order to sell.

Sellers who are trying to unload their homes quickly need to cut prices quickly, and often several times, in order to make quick sales. Not cutting prices enough can mean too low offers from buyers. Unfortunately, not slashing prices can result in owners risking losing their homes because they cannot make their mortgage payments. Also, sellers in Miami have remained reluctant to lower their asking prices, usually in an effort to avoid owing the bank money after making the sale because the sold the house for less than they owed. And, banks are still resistant to forgive the remaining mortgage.

The median-price for a single family home was $147,900 in Miami-Dade County this past February,which is down over 20 percent from the previous year, according to the Miami Association of Realtors. As prices continue to drop, local home owners will have no choice but to lower prices or stay off the market for a few more years. Most Miami home sellers are leaving their property on the market for a little more than three months before giving in and cutting the price. This number puts Miami at ninth in the nation's top metropolitan areas.

If you fear you are at risk of being forced into foreclosure, do not think that you have no other options. Contact a Miami foreclosure lawyer who can help you figure out your options. Foreclosure can be avoided through short sales, deed in lieu and sometimes bankruptcy. Only a Miami foreclosure lawyer is qualified to explain your options.

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In era of foreclosure sales, sellers still slashing prices, , by Toluse Olorunnipa

Rapper Nas has delayed his most recent CD's premier for several months while he considered the legal issues involved with using the n-word used as the album name. Even with a total of seven platinum records and the fact that the title does not break any laws, which has also been used before, he could not get approval for the title. In the end, he called his new record simply "Untitled" and using cover art with a reference to slavery.

In 2007, a strike by the Writer's Union meant no 2007 to 2008 television season, leaving most viewers missing their favorite shows, networks scrambling to find shows to fill the gaps and new series being canceled without ever having a opportunity to be shown to viewers. The following summer, the risk of an actors' union strike threatened the next year's television season as well as movies that were in the planning or already in production.

A commercial lawsuit that was filed by the company Viacom against You Tube and their parent company Google accused the video sharing site of copyright infringement for allowing users to post videos of TV shows with out their permission and violating copy writing laws.

This year, the NFL season is at risk as player's unions and owners debate payment and a longer season. It is yet to be seen if there will be a lockout, which could result in severe financial difficulties for local Miami-based businesses that rely on football season to carry them through the rest of the year.

These cases are the types of issues that are resolved with the help of Miami sports and entertainment lawyers. Each of these examples: considering lawsuits on a potentially controversial album title, and contract negotiations or issues of copyright infringement lawsuits need the help and expertise of a Miami sports and entertainment lawyer who know Florida law and can fight for and protect the rights of many companies, unions, artists and even the public. What would an entertainment and sports lawyer do? What different areas of specialization are there within the Miami sports and entertainment lawyers? If you are in the sports or entertainment field, how do you know how to choose the right sports and entertainment lawyer for your needs? Contact a Miami sports and entertainment lawyer for more information.

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How Entertainment Lawyers Work, by Diane Dannenfeldt, April 25th 2011

Eric Silverman of Miami Florida had high hopes for the Vagabond Motel. After acquiring the Vagabond Inn in 2005, Silverman boasted many ideas to renew the charm of this once madly popular and Rat Pack hot spot. Many people wanted to see Silverman's ideas put to work, but sadly this was not the case. Silverman planned a market of sorts and before he could complete his dream, he ran out of money to fund his renovations.

The Vagabond Motel was said to be frequented by the infamous members of the Rat Pack. Pictures were even taken of some of the members singing on the lounge stage. With the demise of Sinatra, so came the demise of the Vagabond. It has yet to return to its former glory though it has changed owners on several occasions.

Returning an old icon, particularly one that comes in the form of a Motel can be an expensive endeavor. It is essential that you retain the services of an experienced Miami foreclosure attorney in order to protect your investment. If your investment is up and running, it is possible to keep your business open and running while modifying your debt or mortgage with minimal damage to your credit history and wallet. The best way to understand how the foreclosure process works (which is the best defense of foreclosure) is not to simply researching your options online, but to also seek a free initial consultation with a qualified Miami foreclosure lawyer. You will likely invest a considerable amount of money when making renovations and a foreclosure consultation in Miami is one of the best ways to protect that investment.

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Vagabond Motel to be Auctioned off May 17, by Jared Goyette, April 19th 2011

Renter's Rights in Miami Florida

If you are renting a home, you may not realize that you have rights under Florida real estate laws. While these laws can vary from state to state, if you are having problems with your landlord you should contact a Miami real estate lawyer.

Basic Lease

When a tenant rents a home, a lease is constructed and is considered to be a contract of both the landlord and the tenant. The lease enforces rules of the rental, such as rent, when it is due, and how long the lease will be. Leases are written to benefit the both parties and can be written with a multitude of variables. A lease with a specified termination date is known as a tenancy for years. Unless another agreement is reached, on the last day of the lease the agreement is terminated and the tenant must vacate the home. A periodic tenancy lasts for a specified period, usually month-to-month, and there is no definite termination date. If the contract is violated based on the laws in accordance with Florida, you have the option to renew the lease at the contract end-date. A tenancy at sufferance refers to the situation where a tenant stays in the home even after the contract was terminated. Landlords who seek to evict after the lease is terminated must follow Florida law. Contact a Miami real estate lawyer if you are being wrongfully evicted.

Security Deposits
Landlords often require a security deposit in advance. The security deposit is intended to cover the costs of any damages that may occur that is not considered "normal wear and tear" and protect the landlord if the tenant does not pay rent. At the termination of the lease, the landlord must return the security deposit within 15-21 days to return the money or notify the tenant of a claim against the security deposit for damages. If the landlord makes a claim, the tenant has 15 days to object. Assuming the tenant agrees, the landlord can then use the security deposit to fix any damages needed. Any dispute on claims can be taken to court. If you think your landlord is trying to wrongfully claim your deposit, contact a Miami real estate lawyer to help you fight for your money.
Eviction

If there is a breach of the lease or the tenant refuses to pay the rent, the landlord has the right to evict the tenant. He or she cannot physically force the tenant to leave the property, but has the right to file a claim for eviction after giving notice to the tenant for eviction. If a suit is ordered and the tenant does not respond, the judge or court will rule in favor of the landlord. Both sides will be heard and action will be taken in favor of the non-breaching party.

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Florida Residential Real Estate Law, April 20th 2011

Mortgage modifications and other scams are running rampant in Miami Florida. The Attorney General is warning of such mortgage modification scams stating that it is illegal for a company to charge any fee whatsoever until after a modification is rendered to the homeowner. As a homeowner facing foreclosure, you must be aware of scammers that may rear their ugly heads. Scammers are particularly fond of elderly and other people who may be at an educational or financial disadvantage. It is because of things like this that it is imperative that you seek a Miami foreclosure attorney who has a reputation for great legal practices.

HUD is launching this campaign to not only help homeowners avoid foreclosure but to educate them about potential scams. They will explain how to spot a foreclosure scam artist, give you the names and business information of potential scammers, give you a resource to use if you come in contact with a foreclosure scam and much more. When faced with a foreclosure in Miami, it is understandable to see homeowners getting desperate and in too many cases jump onto the bandwagon of possible mortgage modification scams. They end up not only losing their homes, but loads of money.
Mortgage or Loan modifications can be negotiated by a qualified Miami foreclosure attorney and can be done safely. Even still, be careful which attorney in Miami you choose as there has been a recent rash if illegal foreclosure activity within the legal community as well. It is advisable to seek an attorney in Miami who has a pristine legal record and can show you case studies of clients they have represented that have either won or utilized another option when foreclosure was imminent.

While foreclosure rates are down for south Florida, foreclosure and mortgage modification scams are still on the rise. We will likely see more in the coming days as the foreclosure statistics will jump once the unclogged foreclosure legal system begins to run smoothly. Until then, utilizing the information H.U.D. is offering can save you some serious heart ache and the help of a great foreclosure defense attorney can offer options you may not know you have.

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New Hud Campaign Empowers Homeowners to Recognize, Avoid and Report Foreclosure Relief Scams, by Rismedia, April 20th, 2011

In a struggling economy and a suffering housing market, it is still a buyer's market. Most Americans still believe that now is a good time to buy a home. Which means that despite difficulties getting financing, and a risk of a double-dip housing market, low prices home are managing to keep up interest in home ownership. Banks that are auctioning foreclosures off dirt cheap and owners short selling homes to escape mortgages they cannot afford has kept house prices low. Interest rates might rise, but the bargain prices are likely to continue as home foreclosures are reaching record highs each month.

Short-sale rates tell the story. Fannie Mae approved short sales on 36,534 home loans it owned in the first half of 2010, nearly triple the number in 2007 and 2008 combined. Freddie Mac, its sister company, approved 22,117 in the first half of 2010, up from only 94 in the first half of 2007. In 2011, those numbers are expected to continue to rise. And foreclosures continue to rise as well. Even with efforts to slow or stow foreclosures all over the country, Florida still ranks second in the nation in foreclosure rates.
And the worst may be yet to come. News reports are citing studies that show real estate short sales are set to increase in 2011 as banks attempt to get rid of defaulting mortgages without foreclosing. Short sales are a way to do that by allowing the owner to sell the home at a loss. Even though the bank takes a loss, it is normally much less than the loss taken in a foreclosure. It also keeps the banks from being left trying to get rid of foreclosed properties that can be difficult to sell even at the low prices. Evicted owner no longer put money into the home during the several months before foreclosure and often strip the home of all appliances.

Short sales are a much quicker and less risky than foreclosures. Keep in mind that if it is a buyer's market, that also means it's a seller's market. And with all the foreclosures hitting the market, it's a good time for a buyer to seek a short sale purchase. Banks are overwhelmed with foreclosures they are trying to get rid of, and are quicker to agree to a short sale than they were years ago. Wondering what this means for Florida homeowners? Will 2011 be the year of the short sale, or will home owners still look to strategic default on their mortgages?

If you are having trouble paying your mortgage, it is important that you contact a Miami bankruptcy attorney who can help you decide what your options are. While the decision is ultimately a personal decision you need to make with your family, a Miami foreclosure attorney has the experience and knowledge to help you decide what your best option is.

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Walking away with less, By Dina ElBoghdady and Dan Keating
Sunday, September 26, 2010

The American dream used to be the ideal that every American sought after. The perfectly manicured lawn on a nice suburban home with a white picket fence. We all thought that we deserved the dream and could attain it if we worked hard enough. Home ownership has long been part of the American dream. The crash of the housing market world wide has changed that dream for Americans. The American Dream as we know it is being redefined for Florida and the rest of the nation. Hundreds of families have lost their home through foreclosure or have been forced to sell them at a loss through short sale. How have foreclosures and short sales affected what the American dream means to families today? Owning a home is not a guarantee for everyone anymore.

In addition to the end of the American dream of owning a home could also mean the end of the 30 year mortgages that allowed home owners to purchase their dream home. The fact is without Fannie Mae and Freddie Mac the 30 year mortgage may go by the wayside, which will leave many potential homeowners with few financing options. What would real estate financing be like without Fannie Mae and Freddie Mac? Will other financiers fill the gap? How would home owners get financing for homes without long term mortgages? As banks juggle foreclosed properties and trying to get even a portion of their money back potential homeowners may be able to buy properties at steep discounts.

Short sales are another way for buyers to get a great deal on properties. Which means that for the time being, the low prices of short sales and foreclosures may allow new buyers to finance their homes over a shorter period of time. But after the sale of foreclosures and short sales dries up, how will buyers finance their dream home? However difficult the problems with the mortgaging companies, there would be consequences for Americans if Fannie and Freddie are shut down. For most borrowers, it would result in higher interest rates and larger required down payments. Americans may need to face the fact that owning a home may no longer be possible for some families.

So, is the idea of home ownership becoming more of a pipe dream and less of the American dream? Foreclosures are changing the face of the American dream all across the nation. If your home and your American dream are at risk in Miami, contact a Miami foreclosure attorney to help you. You may be able to save your home or you may find that a short sale is in your best interest. Only a Miami bankruptcy attorney can help you decide the best option for you and your family.

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Can you picture yourself living in an apartment? Government definitely can! by NCC, October 5th 2010

The housing market and home prices remain fairly stagnant in South Florida. Many people are still under or at risk for foreclosure or are turning to short sales to avoid being forced into foreclosure. But consumers are now beginning to scoop up single-family homes and condos across the United States, and that trend is no different in south Florida Confidence in the housing market is starting to slowly come back even if home prices are not going up . A total of 151,290 bank-owned properties were sold in the second quarter of 2010, up 3 percent from the previous quarter but down from the second quarter of 2009. Bank-owned property sales were 15 percent of all property sales in the second quarter of 2010, down a little from the19 percent of all sales in the previous quarter and down from 20 percent in the second quarter of 2009. In Florida, 34 percent of all home sales are foreclosures or short sales. While there seems to be a slight drop in foreclosed homes and short sales from 2009, it is important to keep in mind the home buyers tax rebate that expired in 2009. Throughout 2010, purchases of homes were are the rise and should continue to do so in 2011.

So how does high foreclosure and short-sale rates help home buyers? It means big discounts on homes. Particularly in the current economic climate, banks do not want to foreclose if they can avoid it. Filing foreclosure costs the banks money, and then they have the responsibility of paying taxes on the property and selling it off. All that hassle can be avoided by short-sales. Short-sales occur when the current owner cannot make their mortgage payments and asks their lender to let them sell the home for less than they sill owe on the mortgage. If the bank agrees, it can mean really big discounts for buyers. At the same time, foreclosed homes are properties that have been repossessed by the bank. The only way for the bank to recoup some of its money is to sell the home, and it is usually sold at a deep discount, some times as much as 43 percent off.

If you are struggling to make your mortgage payments each month, contact a Miami foreclosure attorney to see if a short sale might help you avoid foreclosure. People are buying homes again, so a short sale might work for your situation. Only a Miami bankruptcy attorney can determine what your best option is.

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Foreclosure Discount -- 26% Nationwide, by Peter G. Miller, September 30th 2010

Last year the Obama administration started two new programs to help prevent foreclosures. The purpose is to crack down on two of the more difficult issues in foreclosure. Neither program has had much of an impact, according to data released Friday by the Treasury Department.

One was designed to help home owners modify second mortgages. The second is meant to help home owners get through the complicated and difficult process of apply for a short sale with their mortgage company. The short sale process has notoriously been long and difficult to apply for. In a short sale, a bank agrees to allow the homeowner to sell their home for less than the remaining balance on the mortgage. In exchange, the bank agrees to discharge the remaining debt. This allows the mortgage company to avoid foreclosure and the buyer gets a discounted price on a property.

The United States Treasury says that only 17,000 homeowners have received loan modifications of second mortgages through the federal program even though 17 different mortgage companies have signed up for the program. Compare that amount with 557,000 homeowners that have received permanent loan modifications of their mortgages through February with the federal Home Affordable Modification Program. Second mortgages are lagging in modifications. Why? It is not in the best interests of the banks to modify these second loans. While most first mortgages are held by the government-controlled companies such as Fannie Mae and Freddie Mac, banks hold most of the seconds and other lien mortgages. They have been reluctant to write off second mortgages because most homeowners are still on time making payments. It is not in the banks best financial interests to refinance these loans.

Real estate agents and brokers have often complained about the long process required to get banks to agree to short sales. The process includes the owner proving that they are in a dire financial sitation and are unable to make their payments. It also includes a long waiting period with little or no communication from the mortgage holder. This long process often results in buyers backing out and purchasing another home. This long process meant there was high hopes when the short-sale program launched last year.

As of this year, only about 10,000 homeowners nation wide have begun the short-sale program, which supposed to consider short sales for borrowers who would not have been eligible before. Only 4,500 homeowners have completed the program, which means most are falling through. Those homes are most likely ending up in foreclosure.

While the government offers incentives to mortgage holders, short sales are still lagging as an option to avoid foreclosure. If you are behind on your mortgage payments and think you may be at risk of foreclosure, you need to contact a Miami foreclosure lawyer to see determine your options. Short sale maybe a viable option for you, but only a Miami bankruptcy attorney can advise you on your options.

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Efforts Targeting Short Sales, Second Mortgages Fall Flat. By Alan Zibel and Andrew Ackerman

Short sale is an option for people who are struggling to make their mortgage payments by selling the home at a loss. While a short sale will not keep you in your home, it will keep a foreclosure off of your credit report which will allow you to rebuild your credit quicker. In order to short sell your home, you will hire a Miami foreclosure attorney to help you file the paper work to ask your lender to sell the home at a loss. In exchange, the lender will agree to forgive the remaining balance. It seems like a great deal for all parties involved. You get out of a mortgage you cannot afford to pay, the bank gets more of their money back than if they foreclosed and the buyer gets a great price on a home. But, some experts argue that short sales are not the great deal they seem to be. If you are facing foreclosure or looking into short sale, you should always contact a Miami bankruptcy attorney to see what options you might have for your situation. So what problems might you face if you decided to short sell your home?

First, owners who are at risk of foreclosure already have poor credit ratings because they are already several months behind on their mortgages. Yet the News-Press insists that an advantage of a short sale is helping the home owner avoid foreclosure and protect their credit score. However, a disadvantage of trying to sell your home in a short sale is a lender will not agree to it unless the owner is already behind on their mortgage. In fact, the homeowner must be able to prove they are in financial distress before any bank will agree to a short sale. What is the purpose of short selling the home to protect a credit rating that has to be falling to be eligible for a short sale in the first place? It does not make much sense. And there are a few other issues that call short sales into questions.

The housing market is still struggling even several years after real estate agents are not selling very many homes. Since real estate brokers make money only when they sell homes, their profits have plummeted alongside the housing market. Short sales are a way to entice buyers back into the market. So, now more sellers listing their homes for far less money, and in order to qualify with their lender for the short sale, they actually have to let their credit ratings fall or go into foreclosure.

Taxes are another issue that sours the short sale deal. When a home is sold at a loss, the bank will usually discharge the remaining debt. Which means that homeowners who sell short, are usually subject to income tax on the amount of the discharged debt. Because of this tax liability, the seller could end up owing thousands of dollars to the IRS after a short sale.

So, is short selling your home the solution for your financial issues? While that is a decision only you can make, you should always hire a Miami foreclosure attorney to help you assess your situation.

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400,000 Short Sales Could Occur in U.S. in 2010, by Michael Kraus, September 27th 2009