The housing news reports existing home sales fell sharply in July, declining for a third straight month, as the effects of the expired homebuyer tax credit continued to add turbulence to the housing market. Consumers are now clearly entering into a new economic era where homes are no longer an appreciating asset. Oppenheim Law teaches Florida homeowners the latest legal strategies of foreclosure defense including strategic defaults, short sales, deeds in lieu and deficiency judgments.

Florida Real Estate Attorney and Legal Blogger Roy Oppenheim discusses the current deflationary economy and what new rules homeowners need to learn. Getting rid of devaluing assets (like a home) and conserving cash is a strategy Oppenheim discusses in his real estate workshops.

What: ABC’s and D for Deflation Foreclosure Defense Workshop

When: Wednesday, September 1, 2010 – 6:00 to 7:00 PM

Who: Learn the new way of thinking for a new economy! Homeowners facing foreclosure or underwater mortgages, real estate professionals, buyers and sellers

Where: The Oppenheim Law Online Stream

Or come in person

2500 Weston Road, Suite 404, Weston, FL 33331

Cost: Free with advanced registration

RSVP: To register email roy@oplaw.net or call 954.384.6114

Oppenheim Law will broadcast September’s Foreclosure Workshop online through the Oppenheim Law Strategic Default Channel. Participants are invited to ask questions and comment on the presentation through Oppenheim Law’s Twitter account @OPLaw. For more details see the Oppenheim Law Website.

Roy Oppenheim Tells SFBJ: It’s a Year Late!

Oppenheim Law has been arguing for creative and practical solutions that benefit banks and homeowners alike for more than two years. Finally, while curiously late into the game, CitiMortgage announces a trial deed-in-lieu mortgage program allowing homeowners to avoid the painful foreclosure process.

The deed-in-lieu program allows Florida homeowners facing foreclosure to remain in their homes for 6 months, in exchange for signing over their deeds to CitiMortgage at the end of the period.

Check out Roy Oppenheim’s opinion on the CitiMortgage announcement by reading the entire article in the Oppenheim Law News Room.

As we are always trying to build our arsenal in terms of foreclosure defense strategies, we have constantly said time is on your side and that the cavalry will arrive. So here we have a new government program that may be of interest to all of us by allowing homeowners to stay in their property as a tenant as opposed to a debtor.

Fannie Mae is introducing the Deed-for-Lease Program (D4L), a program designed to minimize family displacement, deterioration of neighborhoods caused by vandalism and theft to vacant homes, and the effect these have on families, communities and home price stabilization.

Here are some of the details regarding the Deed for Lease Program:

• Must be a Fannie Mae loan.
• Cannot be eligible for a loan modification.
• Rent cannot exceed 31% of the household income.
• Provides up to a one year lease- which could possibly become a month to month lease.
• Properties that are eligible for a DIL can possibly qualify for this program. Contingent upon successful DIL.
• Both Primary Residences and Investment properties will qualify for the program.
• Subleasing is prohibited under program.

Other Requirements for Deed for Lease

• The mortgage loan is a first lien mortgage loan secured by a one- to four-unit property. All property types are eligible. Second lien mortgage loans are not eligible.
• The mortgage loan is not guaranteed or insured by a federal agency (FHA, HUD, VA, or Rural Development).
• The borrower resides in the property as a primary residence or has leased the property to a tenant who uses the property as a primary residence. Second homes or vacation homes are not eligible.
• At least three payments have been made since origination or since the last modification.
• At the time of the referral to Fannie Mae for the D4L, the borrower is not 12 or more payments past due on the mortgage loan.
• The borrower is not involved in an active bankruptcy proceeding and is not a party to litigation involving the subject property or the mortgage loan.
• Marketable title is able to be conveyed (a title insurance policy is required).
• If there are subordinate liens secured against the subject, lien releases can be obtained.
• The occupant of the property (i.e., the borrower or the borrower’s tenant) has verifiable income. Occupants with no source of income are not eligible.
• There are no zoning or homeowner’s association (HOA) rental limitations that would prohibit a D4L.

If you missed last weeks real estate workshop, Roy Oppenheim discussed the current Florida real estate market and offered tips for homeowners to stay above water.

Roy offers a free foreclosure defense and real estate workshop on the first Thursday of every month, so make sure you check it out or send your friends next time around.

See below for the tips Roy shared at the workshop and a video of Roy discussing what to do when buying a foreclosure or short sale.

10 Tips to Survive Today’s Florida Real Estate Market

1. Home prices will not increase until the foreclosure rate stabilizes. Watch out for median home prices, they can be very misleading.
2. Sellers should accept multiple offers on their home when doing a short sale.
3. To be approved for a short sale, the seller needs to provide a unique hardship (ie. Loss of income, family member becomes unemployed).
4. Lenders can seek a deficiency judgement even after they issue a 1099
5. Be patient and perform a scrupulous inspection. Roy’s special tip – Spec homes from a builder are your best bet. You know what you are getting and often times builders offer great deals.
6. Lots of opportunities are available for investors.
7. In the process of foreclosure, defend your home and make the bank prove that they own the note.
8. A homeowner is more likely to get a loan modification approved during foreclosure because of the likelihood of mandatory mediation.
9. Lender’s will most likely not accept a Deed in Lieu if you have a second mortgage.
10. In a Chapter 13 you can possibly wipe out the second mortgage on your home if the property is underwater.

For more insightful tips on real estate and the Florida foreclosure process visit: www.oppenheimlaw.com.