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.

Bank of America has expanded a Florida pilot program to the rest of the nation, offering 'relocation incentives' to underwater homeowners to leave the property.

Bank of America is offering homeowners up to $30,000 to sell their homes in a short sale.

The nationwide program, announced this week, is the expansion of a pilot program that started in Florida last year. That program offered homeowners $5,000 to $20,000, with the average payout being $12,000.

The new program offers homeowners $2,500 to $30,000 in "relocation assistance."
To be eligible for the new program, homeowners must owe more than their property is worth -- the reason they would do a short sale as opposed to a regular sale -- plus their loan must be owned and serviced by Bank of America.

New rules may speed short sales

The amount of the payment is at the discretion of the bank. A Bank of America news release says it will be "determined on a case-by-case basis using a calculation that includes the value of the home, amount owed and other considerations."

New short-sale rules may help sellers

To get the payments, homeowners must initiate the sale by the end of 2012 and close by Sept. 26, 2013. In addition, the homeowner is required to work with the bank to set a preapproved sale price before the home is listed for sale. However, homeowners currently in the short-sale process may be eligible for the payments. Information for homeowners is here.

Other lenders also have offered homeowners financial incentives to complete short sales, which they find cheaper and easier to manage than foreclosures. Plus, the home is usually left in better shape and the process is more orderly. But the incentive payments have not been common up to now.

New short-sale rules may help sellers

As the number of short sales grows, such payments may become more common.

The federal Home Affordable Foreclosure Alternatives program offers homeowners $3,000 in relocation incentives to do a short sale.

According to attorney Aaron Resnick, the foreclosure wave has not diminished in Miami-Dade County, Florida. Of the 50 largest metro areas, Riverside-San Bernardino posted the highest foreclosure rate, with one in every 62 housing units with a foreclosure filing during the quarter. In Miami, one in every 95 housing units had a foreclosure filing this past quarter.

Other metros with foreclosure rates that were more than twice the national average included Sacramento (one in 77 housing units), Las Vegas (one in 82 housing units), Phoenix (one in 87 housing units), Atlanta (one in 90 housing units), Miami (one in 95 housing units), Orlando (one in 101 housing units), and Chicago (one in 107 housing units).

RealtyTrac is an online marketplace of foreclosure properties, with more than 2 million default, auction, and bank-owned listings from over 2,200 U.S. counties, along with detailed property, loan and home sales data.

The metro areas that saw the largest increases in foreclosure activity among the 50 were Orlando (+52 percent); Indianapolis (+41 percent); Hartford, Connecticut (+38 percent); Miami (+37 percent); and Philadelphia (+33 percent).

Metro areas with foreclosure rates in the top 20 category included Atlanta (No. 11); Miami (No. 13); Orlando (No. 15); Rockford, Illinois (No. 16); Chicago (No. 17); and Prescott, Arizona (No. 19).

The Law Offices of Aaron Resnick, P.A. is positioned to help homeowners with short sales, loan modifications and foreclosure defense throughout the State of Florida.

According to attorney Aaron Resnick, based upon a preliminary report released by LPS, 2,060,000 properties are in foreclosure inventory. As of the end of the 2011 fourth quarter, 11.1 million borrowers were reported to be underwater, according to CoreLogic.

That's a lot of potential debt to be forgiven, and through the Mortgage Debt Relief Act of 2007, homeowners get a break from paying taxes on their forgiven debt - whether it was forgiven through a short sale, foreclosure, or a modification. The act though, is set to expire at the end of this year.

If extended, this could lead to thousands in savings for the individual borrower. For example, depending on one's tax bracket, every $10,000 in forgiven debt could incur as much as $1,500 to $3,500 in federal taxes. Thus, if $100,000 in mortgage debt is forgiven after a foreclosure, this could mean $15,000 to $35,000 in taxes owed for the borrower.

Rushing to hand over a deed before the December 31 expiration date could become a mistake though if Congress ends up extending the debt relief act, which it may.

"Obama did include it in his budget, to extend it to 2014," said Mark Luscombe, a principal analyst for tax research firm CCH, in a statement. "Congress..... might decide it's not as crucial as extending the tax breaks that already expired at the end of last year."

That doesn't mean Congress won't eventually act to extend the relief, Luscombe said.

"Usually the only fight about these things is finding a way to pay for it," he said.

The administration is proposing to extend the act until January 1, 2015.

The criteria to have forgiven debt excluded as taxable income is the debt must be from a primary residence, and the debt must be used to buy, build or substantially improve a primary residence.

Also, the exclusion applies only to acquisition debt up to $2 million, or $1 million for married taxpayers filing separately.

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 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.

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.

The Law Offices of Aaron Resnick, P.A. is proud to announce its sponsorship of the Little Lighthouse Foundation's Annual "Nightmare Above Lincoln Road" on Saturday, October 29, 2011 on the top floor of the inconic 1111 Lincoln parking structure (invite below). The event will benefit the Little Lighthouse Foundation, Inc. a Florida based 501(c)(3) and children of South Florida. Mr. Resnick is a founding director of the Little Lighthouse Foundation.

The Little Lighthouse Foundation seeks, identifies and provides support to children and their families with health, educational, and financial challenges. This support comes through the deployment of trained volunteers and/or select financial contributions. For more information on the Little Lighthouse Foundation, please go to: www.thelittlelighthouse.org

For more information on the event or to purchase tickets go to: www.nightmareabovelincoln.com


When: Saturday, October 29th 2011
Time: 9 PM - 2AM
Where: 1111 Lincoln Rd. - - 7th floor (@ the corner of Lincoln Road and Alton Road)
Tickets:

General Admission
• Starts at $100 (there are a limited number at this price)
• Premium Open Bar all night
• Food from Miami's finest restaurants
• music by legendary DJ Traichy.
VIP Tickets
• Starts at $150 (there are a limited number at this price)
• Access to all VIP Areas overlooking Lincoln Road.
• Private Premium Open Bar All Night
• Champagne Bar
• Special VIP reception from 8-9 PM
VIP Tables
• $2500- Includes 8 VIP Tickets
• Unlimited Grey Goose Bottles
• Special VIP reception from 8-9 PM
• For VIP Tables or more sponsorship infomation call Jason at 786-368-5494 or email info@thelittlelighthouse.org

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.

Obviously the easiest way to stay of foreclosure is to make mortgage payments on time. In today's faltering economy, this is not possible for everyone. If you are struggling to make your house payment each month or are already a month or two behind, you might be worried your bank will foreclose on you. With foreclosure rates so high across the nation, this is a valid fear. However, you have more power to negotiate with your lender than you probably think. High foreclosure rates means there are a lot of homes on the market, and banks are having trouble selling them. You have a few tools to keep yourself out of foreclosure.

First, make sure you contact a Miami foreclosure attorney to help you. They are experienced in dealing with banks. While you may want to keep your home, you really must be realistic. If you are out of work or making way less money than when you purchased the home then keeping your home might not be in your best interests. A foreclosure attorney can sit with you and figure out your financial situation. If keeping your home is a realistic option for you, you still have several tools to work with.

Short sales in Miami occur you will ask your bank for permission to sell your property for less than the mortgage balance. Why would they let you do that? They will let you do that when the loss through short sale is less than the loss through pursing a foreclosure. If your bank agrees, you sell the house to the buyer with the best offer. If you do not foresee being able to afford payments anytime soon, this may be a good option to avoid foreclosure. You get to get out of a mortgage while avoiding a foreclosure on your credit, the bank avoids losing more money and the buyer gets a great deal on a home. Your bank does have to agree to a short sale, so you will need to hire a lawyer and contact your mortgage company to apply for a short sale.

Loan modification in Miami is another tool to avoid foreclosure. This way will allow you to keep your home and save money at the same time. A loan modification occurs when you notify your mortgage company that you having trouble making payments. The best way to convince them of this is to miss a few payments, unfortunately. A loan modification can be lower interest rates, a grace period where you can miss a few payments without penalty or a longer payment period. Again, your bank must agree to a loan modification.

Filing bankruptcy is never a pleasurable experience. Bankruptcy can be a difficult legal cavern to navigate and unless you know the law, you may make the wrong decisions that will affect the rest of your life. Chapter 7 bankruptcy is one of the most filed bankruptcies in Miami. Chapter 7 allows for the liquidation of your assets to repay all outstanding debts you may have. Here is a few tips when considering a Chapter 7 bankruptcy in Miami.

• Always seek the counsel of a chapter 7 bankruptcy attorney in Miami before initiating a bankruptcy filing. They may be able to find other alternatives to filing bankruptcy in Miami.

• Evaluate your assets. If you can pay off your outstanding debts by liquidating your assets yourself, you should! This will help you avoid a stain on your credit report that can last for MANY years.

• Chapter 7 bankruptcy in Miami should only be considered when you retain very little in the way of assets. Chapter 7 bankruptcy in Miami is usually only used by those whom have outstanding medical bills or the like. Chapter 7 bankruptcy will liquidate all of your assets to repay your creditors, so if you only have a thousand dollars in assets you may be forgiven a massive amount of debt for a small amount of money.

Speaking with a chapter 7 bankruptcy lawyer in Miami will help you decide if a chapter 7 bankruptcy is right for you. You may need to file another type of bankruptcy, especially if you are trying to keep your home and your vehicle. A chapter 13 bankruptcy may be more preferable. A chapter 7 bankruptcy attorney will guide you through the entire process of filing for bankruptcy and explain the affects that a chapter 7 bankruptcy will have on your credit.

As foreclosures continue to rise in Florida, many home owners are falling victim to Miami foreclosure lawyers who work for firms that do not provide results or companies that make unsubstantiated claims.

Before you hire a company or a lawyer who promises they can keep you in your home without having all of the facts of your situation, consider the following news.

As foreclosure rates continue to increase and the courts are clogged with a back log of cases, one Florida judge has finally had enough. Tired of two law firms that specialize in foreclosures missing court dates or sending in unprepared underlings, Judge Campell called the firms top lawyers in to her court room. The judge stated she was sick of seeing the same cases come back to court over and over again for hearings that were not productive because the lawyers were unprepared. Both law firms heads apologized and insisted they will do better. In addition, the judge has stated that the two firms will no longer be able to call in for hearings that do not require any evidence.

The state of Florida has begun to crack down on law firms who are making unsubstantiated claims to homeowners, insisting they can help save them from foreclosure. In fact, the state has sued several firms who were charging up front fees for loan modifications. Charging up front is against Florida statues, but many local homeowners are desperate and will try anything and are often unaware of the law. Florida homeowner's are particularly susceptible to falling for schemes by companies offering to save them from foreclosure because of the continued high rate of foreclosures in the state. As many homeowners are finding themselves unable to make their monthly mortgage payments, they are attracted to companies who promise to help them keep their home. In reality, that is not always the case.

If you are struggling to make payments, hiring a Miami foreclosure lawyer can help you protect your rights and your home. However, every case is different and keeping you home may not always be an options. An experienced Miami foreclosure lawyer will explain the different options available to you and which will result int the best out come for your situation. These options may include a short sale, a loan modification or deed-in-lieu. It is important that you approach the situation with a clear view of your finances and attempt to set aside emotional attachment you might have to your home. While there are several options available to homeowners before they should consider foreclosure, it is important to have a realistic view of what you can actually afford. The final decision is yours, a Miami foreclosure lawyer can only give you advice. You must decide what is best for your family.

Links:

Judge Calls Heads of 2 Foreclosure Firms on Carpet, Revokes Their Phone-Appearance Privileges, by Martha Neil, May 5th 2011

Florida Sues Three Foreclosure Rescue Firms, by Mark Huffman, May 2nd 2011

A new bill that was recently proposed by Florida lawmakers and is set to go to the Governors desk could change how developers in Florida will apply for permits to build. Supporters of the bill insist Florida has placed far to difficult requirements on contractors trying to develop the state.

House Bill 993 will change the way new developments proceed by putting new, harsher requirements on groups who challenge proposed developments. Environmentalists are worried the bill will make it more difficult to protect the environment from detrimental building. Previously, contractors were required to prove why their proposed building would not harm the proposed building area, but if the proposed bill passes that will change drastically. Instead, groups who oppose developers' plans will be required to prove how the proposed development is harmful. This change in the burden of proof could make it far easier for builders to get approval for their plans.

The proposed law could make it very difficult to challenge contractors and developers, which has local environmentalists worried about the effect on Florida's water supplies. Most are appalled by the bill. Supporters of the bill insist the bill is not about damaging the environment, but increasing building in Florida and making it easier for developers to bring much needed constructions jobs back to the State. They insist that out of state developers avoid Florida because they have grown weary of spending long periods of time locked in court battles with environmentalists who do not live any where near the proposed developments. Developers welcome the bill, saying the previous laws were set up in a way that put them at a disadvantage in court.

Critics and Florida conservationist and environmentalists see the bill as a free for all attack on the environment and already fragile water quality in the state. Local leaders who oppose the bill cite concerns over the nearly 85,000 acres located in Lee county that are at risk of being developed. In fact, a southern Florida judge is already so critical of the current water quality of the state he said he is considering asking the federal government to step in and enforce water quality laws that are already in place.

If you are concerned with the legality of this bill or any other commercial law issue, contact a Miami commercial lawyer. Commercial law covers a wide range of issues involving business processes and the buying and selling of goods. If your company is being sued or if you believe your rights have been infringed upon, a Miami commercial lawyer can tell you if you have a viable case. Most Miami commercial lawyers will offer a free consultation to help you decide if you have a case.

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Builders hail late legislation change, by MARY WOZNIAK, May 6th 2011

Chase is offering short sales to delinquent Florida homeowners. Short sale is an option for homeowners who are behind on their mortgage and do not foresee themselves being able to make the payments in the near future. If you have been unemployed for an extended period of time or if you are now making far less than you were when you purchased your home, a short sale may be an option for you. A short sale will allow you to get out from under a mortgage you can no longer afford while protecting your credit as much as possible. And banking giant JP Morgan Chase has decided to sweeten the short sale process. They have decided to offer ten to twenty thousand dollars to owners who will agree to a short sale in addition to forgiving the remaining balance of the loan.

Banks never make any offers that they do not profit from, so what does JP Morgan get out of the deal? Actually, quite a bit. Florida foreclosures are notorious for taking an extended amount of time, sometimes as much as 2 years. Following the robo signing scandal last year, that process could get even longer. During the foreclosure process, the bank is not getting any payments on the mortgage. By getting homeowners to accept a short sale, the bank is avoiding having to pay fees for maintenance and property taxes on a home that could take years after the foreclosure to sell. In addition, the bank clears its financial records of bad mortgages quicker.

A JP Morgan spokesperson insists the move is intended to benefit the banks and homeowners, but would not give specific qualification requirements for the programs. Florida real estate brokers report that the offer is only extended to homeowners who live in areas with more sales and whose homes were building more recently. JP Morgan is also responding to short sale offers much more quickly than many other lenders, who sometimes take 60 to 90 days. The wait period causes many short sales to fall through as prospective buyers move on to other properties. JP Morgan is attempting to shorten that time in order to insure more short sales move forward. This step is a bold move by one of the larger mortgage holding companies in the United States.

If your family is underwater on your home mortgage and believe that a short sale might benefit you, contact a Miami foreclosure lawyer who can assess your situation. A short sale does still reflect poorly on your credit score, but is not as negative as a foreclosure. Every homeowner's situation will be different, and only a Miami foreclosure lawyer can help you make the best decision for you. Call a Miami foreclosure lawyer for a consultation before you make a final decision.

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Chase offers mortgage holders a way out, by Mark Puente, April 30th 2011