Miami Lawyer Blog

3 new programs aimed at improving the housing market

Foreclosed homes continue to plague communities, the housing market and the economy. Banks completed 3.2 million foreclosures between 2008 and 2011, and half again as many lurk in a "shadow inventory" that includes homes with seriously delinquent mortgages, those that are in the foreclosure process and those that have been taken over by banks but not yet listed for sale, according to CoreLogic, a mortgage data firm. Many of those homes are vacant, and they sell for about one-third less than other properties, on average.

Foreclosures have been a drag on the market for years, and relief can't come soon enough. But the latest proposed fixes won't get rolling before year-end.

The Home Affordable Modification Program (HAMP) helps troubled borrowers by reducing their monthly mortgage payment to 31% of their gross monthly income, usually by reducing their interest rate, extending the loan term, deferring repayment of principal or forgiving some of it. The Treasury has extended the program through the end of 2013, tripling the incentives for lenders that choose to reduce loan principal. Borrowers will begin qualifying under the expanded criteria by this summer. Bank analysts estimate that the beefed-up program will help an additional half-million homeowners. For more, visit www.makinghomeaffordable.gov.

A mass-refinancing plan would allow borrowers who owe more than their house is worth but who are current on their loan payments to refinance at today's low interest rates. The plan would save such borrowers an average of $3,000 annually. The catch: Congressional approval of a fee paid by the largest lenders to fund the program is unlikely.

A pilot buy-to-rent program launching this year in hard-hit markets will let investors buy foreclosures from Fannie Mae, then rent them out. Look for the program in Atlanta, Chicago, Las Vegas, Los Angeles, Phoenix and parts of Florida. Investors must qualify to participate (for information, go to www.fhfa.gov). The aim is to make a quick dent in the supply of foreclosures for sale. Success depends on whether bargain-hungry investors pay the prices Fannie expects for its properties.

None of the programs is a quick fix. In fact, the pace of foreclosures will continue to pick up in the wake of a $25 billion settlement reached in February among the federal government, attorneys general in 49 states and the nation's largest mortgage servicers. Although much of that money is slated for principal reductions, refinancing and other consumer assistance, banks are now free to step up foreclosures that were delayed pending the settlement.

Foreclosure fixes will become moot as the economy gains traction and housing demand picks up, says economist Celia Chen at Moody's Economy.com. By 2013, the number of distressed sales will still be high, but their share of total home sales will decline, allowing home prices to rise. The speed of recovery depends on how big a market share distressed properties represent.

About the Law Offices of Aaron Resnick, P.A.

The Law Offices of Aaron Resnick, P.A. is a full service boutique law firm with offices in Miami, Boca Raton, Gainesville/Ocala, Jacksonville and New York City. For additional information, please go to www.thefirmmiami.com, or call 305.672.7495.

On May 2, 2012, Charles Schwab & Co. announced an initiative to make its website more accessible for all customers, particularly those who are blind or have sight disabilities. This high-profile development was part of the settlement of a claim by Kit Lau, a Charles Schwab customer for more than 25 years.

While many have focused on the Americans with Disabilities Act's (ADA's) ever-changing pool lift requirements, we continue to see the DOJ and private advocacy groups driving to enforce the original regulations promulgated 20 years ago under the ADA. As of December 31, 2011, more than 13,130 lawsuits had been filed under the ADA, and the trend continues to grow.

Charles Schwab settlement is one of 15 prominent web site settlements

Charles Schwab, one of the nation's leading securities broker-dealers, and a disability rights advocacy attorney, announced last week that they settled a year-long claim by a blind customer that its website was inaccessible to blind, low vision and cognitively challenged customers. The structured negotiations concluded this dispute short of trial.

With this settlement, Charles Schwab joins a list of 15 prominent companies which have settled website accessibility complaints. Charles Schwab agreed that it will make its website more accessible and inclusive for all customers, and agreed to implement the Web Content Accessibility Guidelines (WCAG) Version 2.0 Level AA which will make its website navigable by disabled customers.

An informal complaint backed by the threat of litigation and administrative investigations was lodged with Charles Schwab by the lawyer for a blind day trader. The claimant was a long-time Schwab customer and herself a computer programmer. One morning, she found that she could no longer navigate the Schwab website using JAWS software and was prevented from making trades on-line. The JAWs software reads aloud the text of the page so blind and low vision customers can access the website.

No DOJ-approved standard for websites

The Department of Justice (DOJ) has not approved and adopted any formal standards for website accessibility and recently withdrew its Notice of Proposed Rule Making for web access standards. The Web Accessibility Initiative (WAI) has been working for years and has promulgated the WCAG which is widely recognized as the "gold standard" for web access. However, given the almost daily changes in technology and the complexities of cyberspace, there are no official website standards.

Most recent DOJ investigations and settlements have focused on website accessibility. Target Corp. recently paid over $6 million to settle a website ADA class action.

What does this settlement mean to you?

If you have not examined your website for ADA compliance, now is the time to do it. Not only does your website need to comply with the substantive requirements for accessible features, for example, but the website itself needs to be accessible to disabled customers. You need to ask yourself some questions. For example:

What standards of accessibility is your website hosting?
How do you measure website compliance?
How often do you audit your website for ADA compliance?

We see the Charles Schwab settlement as reinforcing the importance of ADA compliance for website accessibility as dramatically emphasized in the Hilton ADA settlement with the DOJ. In that recent landmark settlement, Hilton agreed to implement changes to its websites to make them accessible to all customers.

Wakeup call for compliance

Now is the time to audit your website and implement changes to make them accessible, if you have not taken action to make them accessible to disabled customers. Website accessibility audits are far more technical than an ADA Compliance Audit for a hotel and requires highly specialized expertise. The Law Offices of Aaron Resnick, P.A. works with experienced website compliance auditors. Since your secrets are only protected with your lawyer, you should consult with an experienced ADA attorney to help evaluate your company's website.

Charles Schwab is implementing enhanced website accessibility features based on a time table set by a settlement agreement. If you are proactive, you can set your own time table, control the content of your website, and control your own destiny.

According to attorney Aaron Resnick, short sales are rising sharply, offering many struggling homeowners a better alternative to foreclosure in many of the nation's hardest hit states. A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property and the property owner cannot afford to repay the liens' full amounts, whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency. Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties.

A short sale is often used as an alternative to foreclosure because it mitigates additional fees and costs to both the creditor and borrower. While credit is also typically damaged much less than from a foreclosure, both often result in a negative credit report against the property owner. Most creditors require the borrower to prove they have an economic or financial hardship preventing them from being able to pay the deficiency.

Creditors holding liens against real estate can include primary mortgages, junior lien holders--such as second mortgages, home equity lines of credit (HELOC) lenders, home owners association HOA (special assessment liens)--all of whom will need to approve individual applications for a short sale, should they be asked to take less than what is owed.

Most large creditors have special loss mitigation departments that evaluate borrowers' applications for short sale approval. Often creditors use pre-determined criteria for approving the borrowers and the terms of the sale of the properties. Part of this process typically includes the creditor(s) determining the current market value of the real estate by obtaining an independent evaluation of the property with an appraisal, a Broker's Price Opinion, or a broker opinion of value (BOV). One of the most important aspects for the borrower in this process is putting together a proper real estate short sale package including hardship letter explaining why a short sale is needed.

Depending on each creditor's policy and the type of loan, creditors may accept applications from borrowers even if the borrower is not in default with their payments. Due to the overwhelming number of defaulting borrowers due to mortgage failures and other causes as part of the 2008-2012 global financial crisis, many creditors have become adept at processing such short sales applications; however, it can still take several months for the process from start to finish, often requiring multiple levels of approval.

In January, short sales rose 33% compared with 12 months earlier, the company reported. During the month, 32 states saw year-over-year percentage increases in short sales. Even more encouraging, short sale deals outnumbered foreclosures in 12 states, including some of the hardest hit like California, Arizona and Florida.

January's numbers look to be just the beginning. "[W]e believe 2012 could be a record year for short sales," said Daren Blomquist, vice president at RealtyTrac.

Banks are showing signs of being more open and willing to approve the deals -- even if it means accepting less money. The average sales price for a short sale was $174,120 in January, down 4% from December and 10% year-over-year.
The rich walk away: Million-dollar foreclosures

Typically, banks get about 20% less for a foreclosed home. Foreclosure can also take years to unload, during which expenses, like property taxes, insurance and other expenses, mount up.

One of the biggest roadblocks for short sales has been the time it takes to get deals approved. That time shrunk slightly during the first quarter -- to 306 days from 308 days the previous quarter -- but many deals still fall through because the buyer eventually walks away.

However, that could all change come June 1 when a set of new rules are put in place that will require lenders to make a decision about short sale requests within 60 days.

The Law Offices of Aaron Resnick, P.A. has helped hundreds of clients with short sales.

About the Law Offices of Aaron Resnick, P.A.

The Law Offices of Aaron Resnick, P.A. is a full service boutique law firm with offices in Miami, Boca Raton, Gainesville/Ocala, Jacksonville and New York City. For additional information, please go to www.thefirmmiami.com, or call 305.672.7495.

AARON RESNICK'S TOP TEN THINGS TO KNOW WHEN BUYING A CONDOMINIUM

Condo financing can be challenging these days. Before selecting your new home, save yourself some time and frustration by checking with the HOA against this list of criteria to make sure the loan you want is available:
1. Is the condo complex FHA approved? This means the project is listed on the FHA approved list and has recently been recertified to meet current FHA guidelines. The project still needs to meet items 2 - 10 on this list in order to qualify for FHA.
2. What is the owner occupancy ratio in the project? This is determined by finding out how many total units there are, how many are owner occupied, and how many are rented. FHA requires 50% owner occupancy. Fannie Mae and Freddie Mac require 51%. Some conventional financing allows for owner occupied buyers only with at least 10% down when these ratios cannot be met.
3. How many owners are more than 30 days late on HOA dues? FHA and conventional financing requires no more than 15% of the owners be late or the project is considered non warrantable.
4. Does any one person or entity own more than 10% of the project? This can be an issue in small complexes when someone owns more than one unit or has combined two units into one.
5. How much of the building is mixed use? Many newer projects in Boulder and metro Denver have a mixed‐use component. While it's great for urban planning, it can be challenging for financing. If more than 25% of the total square footage is used for commercial or business, the project is ineligible for conventional or FHA financing. Some smart developers have phased their projects in such a way that they avoid this issue so always be sure to check.
6. Is the HOA in a lawsuit? While this isn't a prevalent problem, it does come up. If the HOA is in any kind of lawsuit with owners or contractors or anyone else, FHA and conventional financing will not be available until the lawsuit is settled.
7. Does the HOA annual budget include 10% in reserves? Most well‐run HOAs have a reserve built into their annual operating budget but it is important to make sure.
8. Does the HOA have $1 million liability coverage? This is a minimum industry standard.
9. If the project is over 20 units, does it have fidelity bond coverage? Another new industry standard for larger complexes to protect against mismanagement of HOA funds.
10. If the project is FHA approved, have they allocated funds for FHA re‐approval every 2 years? FHA now requires every project be recertified every 2 years. It's a good idea to make sure the HOA has the resources allocated in the budget for this new additional cost. Especially if the condo price point is in lower end of the spectrum, you
will be better prepared for resale by making sure the condo you buy will be easy to finance for a new buyer when you're ready to sell and move up.

About the Law Offices of Aaron Resnick, P.A.

The Law Offices of Aaron Resnick, P.A. is a full service boutique law firm with offices in Miami, Boca Raton, Gainesville/Ocala, Jacksonville and New York City. For additional information, please go to www.thefirmmiami.com, or call 305.672.7495.

Attorney Aaron Resnick agrees that the underlying economic data in South Florida supports a conclusion that home prices are close to bottoming. In fact, home prices are already on the rise in Miami Beach. According to the article below by Lucia Mutikani,
"[t]he relentless decline in home prices is nearing an end and prices should rise for the first time in seven years in 2013, but a possible new wave of foreclosures could threaten the recovery, according a Reuters poll of economists."

http://news.yahoo.com/home-prices-close-bottoming-rise-2013-135728513.html

Rest of Article below:

The median forecast of 24 economists polled by Reuters was for the S&P/Case-Shiller 20-city home price index to end the year unchanged. That was the same finding back in January for this house price gauge, which covers 20 cities.

"We are expecting a gradual improvement, but if we get a big wave of new foreclosures coming to the market, price declines could be even greater," said Yelena Shulyatyeva, an economist at BNP Paribas in New York.

The survey forecast the S&P/Case-Shiller home price index rising 2.0 percent next year, up from 1.5 percent in the January survey.

The housing market's collapse pushed the economy into its longest and deepest recession since the 1930s. Historically, housing has led the economy out of recession, but it has been the weakest link in the recovery that started in mid-2009.

While residential construction accounts for a mere 2.3 percent of gross domestic product, home prices have an oversized reach in the economy, influencing a wide range of consumption decisions by households.

House prices have so far fallen about 32 percent from their peak at the end of 2005, and an estimated 11 million Americans now owe more on their homes than they are worth.

A resulting tide of foreclosures has held back the housing market's recovery.

The survey predicted about 1.5 million foreclosed properties will come on to the market this year. While there is no comparison for this figure, most analysts believe the foreclosure wave has either peaked or is close to topping out.

Given that foreclosures and the accompanying fear of further price declines are the main obstacles to any housing market recovery, few analysts say that further purchases of mortgage backed securities by the Federal Reserve will help.

Fed officials meet on April 24 and 25 to debate whether further steps are needed to drive borrowing costs lower to spur stronger economic growth.

Mortgage rates are already near record lows and house affordability is the best in history.

"The problem with the housing market is not necessarily that mortgages are expensive," said Millan Mulraine, a senior macro Strategist at TD Securities in New York.

"It's more the expectation that prices may continue to fall and cause a lot of potential buyers to sit on the sidelines to wait for more attractive entry points. I don't think there is lot more mileage to be achieved from MBS purchases."

Further MBS purchases by the U.S. central bank, however, could help keep mortgage rates low as the economy's recovery gains momentum.

The survey forecast the 30-year mortgage rate averaging 4.00 percent in 2012, down from 4.15 percent in the January poll.

Although job growth slowed in March, the labor market is expected to continue strengthening this year.

That should help to lift home sales. Sales of previously owned homes are expected to register an annualized 4.70 million unit annual pace in both the second and third quarters of this year before topping at 4.80 million units in the fourth quarter.

That compares to a rate of 4.60 million units and 4.70 million units in the second and third quarter respectively in the January survey.

"This gradual healing is encouraging, but we must tread carefully as the housing market is still far from a robust recovery," Michelle Meyer, an economist at Bank of America Merrill Lynch in New York.

(Reporting by Lucia Mutikani; polling by Snehasish Das and Aakanksha Bhat; Editing by John Stonestreet)

About the Law Offices of Aaron Resnick, P.A.

The Law Offices of Aaron Resnick, P.A. is a full service boutique law firm with offices in Miami, Boca Raton, Gainesville/Ocala, Jacksonville and New York City. For additional information, please go to www.thefirmmiami.com, or call 305.672.7495.

Foreclosure defense attorney Aaron Resnick notes that there appears to be an uptick in the housing market that should help everyone dealing with the foreclosure crisis in the United States. Resnick notes that some of his clients have seen such dramatic changes since his firm was retained that they have actually sold their homes for a profit.

According to an article published today by Nick Timiraos, http://blogs.wsj.com/developments/2012/04/17/report-sellers-asking-prices-rose-in-march/?mod=wsj_share_linkedin, seller asking prices are increasing across the United States.

Here's a sign that sellers are feeling more optimistic about their prospects this spring: median asking prices in March jumped by 5.6% from a year ago, and were up 1% from February, according to a report released Tuesday.

The jump in median asking prices comes amid a sharp drop in the number of homes listed for sale from one year ago. While listing inventories in March rose by 1.5% from February, they were still 21.5% below last year's levels.

Click for interactive with metro-level data.

Inventories of homes listed for sale tend to go up in the spring, and the 1.8 million listings in March represented the second straight increase for the year. Over the past 27 years, the average increase in for-sale listings in March has been 1.8% from February, according to research firm Zelman & Associates.

The Realtor.com figures include sale listings from more than 900 multiple-listing services across the country. They don't cover all homes for sale, including those that are "for sale by owner" and newly constructed homes that aren't always listed by the services.

Compared with February, inventories declined in roughly less than half of the top 30 metros tracked by Realtor.com during March, with the biggest declines in Phoenix (-6.4%), Seattle (-4.8%) and Orlando, Fla. (-4.2%).

Northeastern cities showed the largest inventory gains -- a finding that shouldn't surprise given that sellers are more likely to list their homes when the weather improves. Washington, D.C., saw a 9.5% gain, followed by Philadelphia (8.1%) and Boston (7.4%).
More In Realtor.com

Spring Ritual Returns: 'For Sale' Signs Sprout
Where Are All the Home Sellers?
Housing Inventory Ends Year Down 22%
Already Low, Housing Inventory Drops More
Housing Inventories Fall to New Four-Year Low in October

But compared with one year ago, inventories are still down sharply in almost all of the 145 markets tracked by Realtor.com. Just two, Philadelphia and Hartford, Conn., have seen any annual inventory increases. Listings are down by more than half in Oakland and Bakersfield, Calif.

Where are prices rising? Median asking prices were up from one year ago or unchanged in the vast majority of markets, with whopping increases of 23% in Phoenix, 22% in Miami, 17% in Washington, D.C.

The biggest monthly price gains were reported in San Francisco (6.1%), Seattle (5%) and Washington, D.C. (4.1%).

Where are prices falling? Chicago topped the list, with median asking prices down by 9.5% from last year's levels. Orange County, Calif., saw a 5.4% decline and Los Angeles posted a 3% drop.

Compared with February, asking prices turned up in all but one of the cities, with Minneapolis posting a 2.2% drop in median listing prices from February.

About the Law Offices of Aaron Resnick, P.A.

The Law Offices of Aaron Resnick, P.A. is a full service boutique law firm with offices in Miami, Boca Raton, Gainesville/Ocala, Jacksonville and New York City. For additional information, please go to www.thefirmmiami.com, or call 305.672.7495.

According to DSNEWS.com, beginning June 15, real estate agents working with distressed homeowners whose loans are backed by Fannie Mae and Freddie Mac should expect to receive a decision on a short sale offer within 30-60 days.

Attorney Aaron Resnick a foreclosure attorney representing home owners and business owners advises that this is the first positive news in ages regarding short sales. According to Resnick, Short Sales now are now more common in South Florida than bank REOs.

The GSEs issued new guidelines Tuesday that fall under the Servicing Alignment Initiative rolled out last fall and aim to bring greater transparency to the short sale process and expedite decisions related to these pre-foreclosure sales.

Not only is a short sale an effective foreclosure alternative when home retention is no longer an option, but it keeps homes occupied and helps to maintain stable communities, according to the Federal Housing Finance Agency (FHFA).

Addressing real estate practitioners' No. 1 complaint about short sales, FHFA directed Fannie Mae and Freddie Mac to establish a new uniform set of minimum response times that servicers must follow in order to facilitate more efficient short sale transactions.

The GSEs' new short sale timelines require servicers to make a decision within 30 days of receiving either an offer on a property under the companies' traditional short sale programs or a completed Borrower Response Package (BRP) requesting short sale consideration, whether it's through the federal government's Home Affordable Foreclosure Alternative (HAFA) program or a GSE program.

If more than 30 days are needed, servicers must provide the borrower with weekly status updates and come to a decision no later than 60 days from the date the BRP or offer was received.

According to the GSEs, this 30-day add-on will provide some leeway for servicers who may need more time to obtain a broker price opinion (BPO) or a private mortgage insurer's approval for a short sale. All decisions must be made within 60 days.

In the event a servicer makes a counteroffer, the borrower is expected to respond within five business days. The servicer must then respond within 10 business days of receiving the borrower's response.

The GSEs plan to use the new short sale timelines to evaluate servicer compliance with the Servicing Alignment Initiative.

Edward DeMarco, acting director of the FHFA, says the GSEs new borrower communication and timeline requirements for short sales "set minimum standards and provide clear expectations regarding these important foreclosure alternatives."

GSE servicers must comply with the new minimum communication time frames for all short sale evaluations conducted on or after June 15, 2012, although servicers are encouraged to begin implementing the new requirements sooner.

"I applaud Fannie and Freddie for finally coming out with real guidance with real world timelines for their servicers," commented Anthony Lamacchia, broker/owner of McGeough Lamacchia Realty Inc., which specializes in short sales. "There is no question that this will help short sales and the market as a whole."

Last year Freddie Mac completed 45,623 short sales, a 140 percent increase since 2009. Fannie Mae's short sale completions shot up by 101 percent over the same period, totaling around 79,800 in 2011.

About the Law Offices of Aaron Resnick, P.A.

The Law Offices of Aaron Resnick, P.A. is a full service boutique law firm with offices in Miami, Boca Raton, Gainesville/Ocala, Jacksonville and New York City. For additional information, please go to www.thefirmmiami.com, or call 305.672.7495.

CATACLYSMIC RULING IN FAVOR OF PURCHASERS OF NEW CONSTRUCTION CONDOMINIUM DEPOSITS ISSUED BY THIRD DCA ENTITLING CERTAIN BUYERS TO FULL REFUND OF THEIR ESCROW DEPOSITS

Miami, Florida - September 7, 2011 - Florida's Third District Court of Appeals rendered an opinion today in one of the most significant legal decisions in Florida related preconstruction condominium deposit recovery cases. Attorney Aaron Resnick, one of the first condominium deposit recovery attorneys in Florida, has referred to the ruling as "potentially cataclysmic" for developers. According to Resnick, the Third District Court of Appeals ruled that if a developer did not strictly comply with Florida Statute § 718.202 by failing to use two separate escrow accounts for a buyer's purchase deposits, then a buyer could recover their entire deposit as well as their attorneys' fees and costs from the developer. The decision involved two consolidated condominium deposit cases against North Carillon, LLC and First American Title Insurance Company.

The Court held that the title insurance company did not have liability to the purchasers even if they funds were held in violation of the statute. The United States District Court for the Southern District of Florida rendered a similar ruling in 2009, Double AA International Investment Group, Inc. v. Swire Pacific Holdings, Inc., 674 F. Supp. 2d. 1344 (S.D. Fla. 2009), aff'd in part, vacated in part, 637 F.3d 1169 (11th Cir. 2011). That ruling was adopted by the Third District Court of Appeals. After the Double AA ruling, the Florida Legislature, after heavy lobbying by condominium developers, amended Florida Statute § 718.202 with the intention of undermining the Double AA decision and to clarify the statute so that the two escrow account requirement was not mandatory under the law.

The Third District Court of Appeals ruled that this amendment could not be applied retroactively to impair a purchaser's statutory right to void the contract if the statute was not complied with. The Third District Court of Appeals specifically concluded that if it were applied retroactively it "would impermissibly impair each buyer's pre-amendment contract rights."

Resnick notes that the developer in the case can still move for a rehearing of the decision and could attempt to appeal it to the Supreme Court of Florida. However, in the interim, Resnick articulated the law has shifted clearly in the favor of consumers on this issue and the doors may have been opened for persons who thought they had lost everything to seek full recovery of their deposits. As Resnick noted, "the Third District has ruled conclusively that buyers, pre the 2010 amendment, were entitled to have their first 10% deposit in an escrow account separate and distinct from the special escrow account for that buyer's 'in excess of 10 percent'".

Visit www.thefirmmiami.com or www.recovermydeposit.com today to receive information on the Law Offices of Aaron Resnick, P.A. and Recover My Deposit.
For more questions about this release please contact info@thefirmmiami.com or call 305.672.-7495.

CATACLYSMIC RULING IN FAVOR OF PURCHASERS OF NEW CONSTRUCTION CONDOMINIUM DEPOSITS ISSUED BY THIRD DCA ENTITLING CERTAIN BUYERS TO FULL REFUND OF THEIR ESCROW DEPOSITS

Miami, Florida - September 7, 2011 - Florida's Third District Court of Appeals rendered an opinion today in one of the most significant legal decisions in Florida related preconstruction condominium deposit recovery cases. Attorney Aaron Resnick, one of the first condominium deposit recovery attorneys in Florida, has referred to the ruling as "potentially cataclysmic" for developers. According to Resnick, the Third District Court of Appeals ruled that if a developer did not strictly comply with Florida Statute § 718.202 by failing to use two separate escrow accounts for a buyer's purchase deposits, then a buyer could recover their entire deposit as well as their attorneys' fees and costs from the developer. The decision involved two consolidated condominium deposit cases against North Carillon, LLC and First American Title Insurance Company.

The Court held that the title insurance company did not have liability to the purchasers even if they funds were held in violation of the statute. The United States District Court for the Southern District of Florida rendered a similar ruling in 2009, Double AA International Investment Group, Inc. v. Swire Pacific Holdings, Inc., 674 F. Supp. 2d. 1344 (S.D. Fla. 2009), aff'd in part, vacated in part, 637 F.3d 1169 (11th Cir. 2011). That ruling was adopted by the Third District Court of Appeals. After the Double AA ruling, the Florida Legislature, after heavy lobbying by condominium developers, amended Florida Statute § 718.202 with the intention of undermining the Double AA decision and to clarify the statute so that the two escrow account requirement was not mandatory under the law.

The Third District Court of Appeals ruled that this amendment could not be applied retroactively to impair a purchaser's statutory right to void the contract if the statute was not complied with. The Third District Court of Appeals specifically concluded that if it were applied retroactively it "would impermissibly impair each buyer's pre-amendment contract rights."

Resnick notes that the developer in the case can still move for a rehearing of the decision and could attempt to appeal it to the Supreme Court of Florida. However, in the interim, Resnick articulated the law has shifted clearly in the favor of consumers on this issue and the doors may have been opened for persons who thought they had lost everything to seek full recovery of their deposits. As Resnick noted, "the Third District has ruled conclusively that buyers, pre the 2010 amendment, were entitled to have their first 10% deposit in an escrow account separate and distinct from the special escrow account for that buyer's 'in excess of 10 percent'".

Visit www.thefirmmiami.com or www.recovermydeposit.com today to receive information on the Law Offices of Aaron Resnick, P.A. and Recover My Deposit.
For more questions about this release please contact info@thefirmmiami.com or call 305.672.-7495.

It goes without saying that for many hotel owners the past few years have been tough financially. The general economic downturn, or recession as some economists have suggested, has caused hotel vacancy rates to skyrocket. Unfortunately for many hotel owners surrounding the Gulf of Mexico, the BP Oil Spill has exacerbated the vacancy rates which, in turn, have drastically hastened the financial downturn. At the end of the day, most hotel owners affected by the BP Oil Spill have experienced a substantial loss in revenues which, in turn, has caused the owners to default on their mortgage loans. If the hotel owners have personally guaranteed the mortgage loans, financial disaster for the hotel owners could be looming on the horizon.

Whether or not affected by the BP Oil Spill, it is critical for hotel owners to consider some form of personal wealth preservation planning (also known as asset protection planning). The planning is designed to protect the accumulated, personal assets of the hotel owner, including, in some cases, the hotel owner's ownership of the hotel. Without proper planning, the assets of the hotel owner are exposed to creditor judgments including in many cases a deficiency judgment from the lender of the hotel mortgage loan. With proper planning, the assets of the hotel owner would be insulated from creditor judgments. Of course, every hotel owner's situation is different, so the foregoing is subject to the facts and circumstances of the hotel owner's specific situation. Additionally, the effectiveness of proper planning is, in part, dictated by the timing of the establishment of the planning and the jurisdiction of the hotel owner. It is important the hotel owners act now. At some point, it will simply be too late to protect the hotel owner's assets.

The Law Offices of Aaron Resnick, P.A. offers all hotel owners a complimentary initial analysis of the hotel owner's specific situation and to determine whether wealth preservation planning is something to consider. If you are interested in such an analysis, please contact the Law Offices of Aaron Resnick, P.A. From this analysis, we will be in a position to suggest whether you should engage our legal services to educate you on your planning options and to devise a plan to protect your assets. If you decide to engage our services, we will then establish and implement the planning.

Derek A. Schwartz leads the Firm's Wealth Preservation practice group. He concentrates his practice in areas of wealth preservation, estate planning, wills and trusts, asset protection, probate and the tax and business legal needs of professionals, business owners and current and former professional athletes. Mr. Schwartz earned his bachelor degree in accounting from Emory University and his law degree from the University of Florida Levin College of Law. At the University of Florida, he served as a tax editor to the Florida Tax Review and was a member of the Florida Law Review. Formerly associated with the law firms of Holland & Knight, LLP and Greenberg Traurig, Mr. Schwartz has now provided Wealth Preservation planning to over 1000 clients nationally.

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The tax implications of a short sale, more specifically the deficiency in the short sale, are a very common question; especially this time of year. Here, specified by a highly placed tax and financial professional, is the definitive answer. Combined with the imminent effect of the Home Affordable Foreclosure Assistance act by Congress, will enable all distressed short sale property owners to breathe a huge sigh of relief.

One more time, a short sale occurs when the mortgage lender allows the property to be sold for less than the balance owed on the mortgage. This can be negotiated with the lender as part of a financial hardship account by the borrower. Short sales are notorious for taking months to complete because the mortgage servicer stalls and ignores the application. A mortgage loan deficiency is the difference between the actual selling price of the distressed property and the mortgage loan balance at closing.

It's important to get the mortgage deficiency negotiated before closing when the distressed homeowner has control. After foreclosure, the homeowner gives up all control and the mortgage servicer is free to come after the deficiency amount for years.

It has been demonstrated inumerable times that mortgage loan servicers benefit more from a foreclosure than a short sale or mortgage modification. Engaging an experienced short sale negotiator and investor like the ones I represent assures that the lender will not be allowed to stall the process. The one mistake in the expert article is the statement that a short sale decision is clearly up to the lender. By getting the REST Report and an unbiased short sale amount, the homeowner will be supported by their local foreclosure court and the mortgage servicer will not be able to foreclose without good faith negotiations. The REST Report has been sanctioned by every judge who has seen it.

Typically, the lender will issue a form 1099C (cancellation of debt), and the amount canceled would be taxable as income to the borrower (seller). Current law allows short sales of a principal residence completed during 2007 through 2012 to exclude the forgiven balance from taxable income, up to $1 million for a single filer and up to $2 million for a joint return. For more detailed information, consult IRS Publication 4681 or your tax adviser.

While the Home Affordable Foreclosure Assistance law states that the lender will no longer be allowed to come back to the former homeowner for that deficiency, no one who has completed the HAFA process is happy with it. Everyone will tell you that they would have been better off using an independent short sale investor and negotiator.

Miami Florida Foreclosure Attorney Aaron Resnick comments on the breaking story: South Florida No. 2 on mortgage fraud risk list.

South Florida's mortgage fraud risk index spiked 10 percent during the first part of the year, shooting the region to second place nationally for potential housing scams. It ranked 20th during the same time last year. The region, comprising Palm Beach, Broward and Miami-Dade counties, was the only high-risk area to see an overall increase, according to a report released this month by fraud analysis company Interthinx. Top-ranked Modesto, Calif., experienced a 23 percent decrease in the first quarter compared with the same time in 2010. [Source: Palm Beach Post]. Florida litigation attorney, Aaron Resnick stated that "this is very troubling that in such times of unrest in the housing market mortgage fraud is still an issue." Resnick suggests that all buyers and sellers have an attorney when purchasing property.

Continue reading "South Florida No. 2 On Mortgage Fraud Risk List" »

Super Lawyer Magazine named Miami Attorney Aaron Resnick one of its 2011 Rising Stars.

Super Lawyers is a listing of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The magazine names exceptional attorneys annually in all 50 states and Washington, D.C. Super Lawyers uses a rigorous selection process that begins with peer nomination. Once attorneys are nominated they are then evaluated on 12 indicators of peer recognition and professional achievement through a third-party researcher.

The 'Super Lawyers' and 'Rising Stars' lists will appear in Florida Super Lawyers magazine which will be mailed to attorneys in Florida and the ABA-accredited law school libraries. The Florida Super Lawyers supplement will appear in The Wall Street Journal (Florida distribution) on Thursday, June 16, 2011. 'Super Lawyers' and 'Rising Stars' also appear on the Web at superlawyers.com.

Mr. Resnick's law practice concentrates on business and commercial matters, real estate law and litigation and sports and entertainment law. He has successfully represented a number of clients in commercial foreclosure matters and has a company that specializes in working with lenders on distressed assets.

His current practice also includes the personal representation of a number of current and former professional athletes in the National Football League, the National Basketball League and Major League Baseball, as well as members of the arts, fashion and entertainment world.

Continue reading "Miami Attorney Aaron Resnick Name Rising Star by Super Lawyer Magazine" »

Miami attorney, Aaron Resnick, managing partner of the boutique law firm, the Law Offices of Aaron Resnick, P.A. and founder of Faction Capital, www.factioncapital.com, was named one of the South Florida Business Journal's "40 under 40," the annual listing of South Florida's best and brightest leaders under the age of 40 based on professional success and community involvement. "I am incredibly flattered to have been recognized and included among such an impressive list of South Florida leaders," said Resnick. "Young leaders are a vital asset to our region and it's important to recognize and acknowledge those who are making great strides in shaping our society's future," said Melanie Dickinson, Publisher & President of the South Florida Business Journal.

Resnick's law practice concentrates on business and commercial matters, and sports and entertainment law. He has successfully represented a number of clients in commercial foreclosure matters and has a company that specializes in working with lenders on distressed assets. His current practice also includes the personal representation of a number of current and former professional athletes in the National Football League, the National Basketball League and Major League Baseball, as well as members of the arts, fashion and entertainment world.

Resnick, a graduate of Leadership Miami, is a leader in the Miami's legal and cultural arts scene. Resnick was awarded the "Shining Star" Award by the Arts & Business Council of Miami, Inc. This award each year honors the top Miami business professional supporting the arts and cultural community. Resnick was the founding chairperson of the Friends of the New World Symphony, and now serves permanently on its Executive Committee. He served on the executive committee for numerous young patron groups in South Florida including, but not limited to: Best Buddies of South Florida, Big Brothers Big Sister's Impact Circle, Art Crowd of the Bass Museum, the Green Room Society for the Center for Performing Arts, the Tropees of the Historical Museum of Southern Florida, the Jewish Legal Society of Miami, and the MOCA Shakers amongst others. He is a Regional Board Member of the Maccabi World Union and a member of the Ben Gurion Society of the Greater Miami Jewish Federation.

Currently, he is a member of the Silver Director's Circle for the Bass Museum, the Maestro's Circle for the Friends of the New World Symphony, and a Supporting Member of the Adrienne Arsht Center for the Performing Arts (and a member of the Green Room Society). Resnick is a board member of the Little Lighthouse Foundation, www.littlelighthouse.org, which is a Miami based charity that seeks, identifies and provides support to children and their families with health, educational, and financial challenges. Mr. Resnick received his Bachelors of Arts in Political Science with honors from Emory University and a Juris Doctor with honors from the University of Florida.

About the Law Offices of Aaron Resnick, P.A.

The Law Offices of Aaron Resnick, P.A. is a full service boutique law firm with offices in Miami, Boca Raton, Gainesville/Ocala, Jacksonville and New York City. For additional information, please go to www.thefirmmiami.com, or call 305.672.7495.

About Faction Capital

Faction Capital, LLC, www.factioncapital.com, is a private real estate consulting firm that deals with distressed assets and related products and properties. Faction Capital works with some of the most prominent real estate owners and developers from the private and public sectors, REITs and REOCs, leading financial institutions, foremost private equity funds, elite hedge funds, as well as insurance and pension funds.

About South Florida Business Journal 40 Under 40 Awards

The South Florida Business Journal each year selects its 40 Under 40 Award winners. These business leaders have all achieved impressive career success and contributed to their community before reaching age 40. This year's honorees were selected from hundreds of nominations. The judging criteria comprised nominees' positions within their companies, responsibilities, career accomplishments and community service. In addition to the SFBJ June issue print feature, the 2010 Class of 40 Under 40 will be honored with a luncheon Thursday, July 28 at Hyatt Regency Pier Sixty-Six, 2301 S.E. 17th Street, Ft. Lauderdale, FL 33316. The reception will be from 11:30 a.m. to 1:30 p.m. Individual tickets are $85 each and a table sponsorship (seats 10) is $950.

The largest portion of the current southern Florida housing market continues to be distressed sales. Sales of homes under duress, such as short sales or foreclosures have long been blamed for low housing prices. With so few buyers on the market, it is difficult for homeowners to compete with the discounted prices offered by banks trying to off load seized properties or homeowners selling their home blow value in a short sale. This makes it nearly impossible to sell new homes at a profit, or for homeowners to sell their current properties without losing considerable money. While the number of houses sold are slowly started to rise, prices do not. The average coastal area home in Miami Dade area is down nearly 15 percent. Local real estate brokers insist focusing on the area as a whole does not give an accurate picture. By removing Broward county and lower income areas, which continue to suffer from high foreclosure rates, real estate experts say that the overall housing market in southern Florida is much healthier than it appears. In coastal areas such as Key Biscayne, housing prices are going up, not by much but they are recovering. Experts are hoping that localized recovery is a indication that the market in Miami is recovering, even if it is just a bit.

Other experts suggest looking at such localized numbers is a bad idea and could give the false sense of recovery to an area that is still in very bad shape. These real estate experts insist that the over all housing market is very intertwined and ignoring distressed sales close by is a huge mistake. These critics suggest that real estate agents are choosing to look at very limited data in an effort to create a false sense of security in buyers and pad their own bottom line.

Distressed sales, which include homes sold at discounted prices such as foreclosures and short sales, are still on the rise in southern Florida. They increased a full ten percent from 55 percent last to nearly 65 percent this year. Most experts believe that until distressed sales are under ten percent, the housing market will not be able to completely recover.

As real estate experts continue to argue over when and how the housing market will recover, most Americans are more worried about making their monthly mortgage payments and keep a roof over their heads. If you are experiencing difficulties making your payments each month, you need to contact a Miami foreclosure lawyer as soon as possible. Hiring Miami foreclosure lawyer does not necessarily mean you will lose your home, in fact there are several other options you need to consider before foreclosure. A Miami foreclosure lawyer can help you figure out if you are eligible for options such as refinancing, loan modification, short sale or deed-in-lieu. Before giving up on your dream home, contact a Miami foreclosure lawyer.

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A report focusing on Miami-Dade coastal cities found that sale prices of non-distressed properties were flat from a year ago. By TOLUSE OLORUNNIPA, May 4th 2011