Oppenheim Law hosted its largest Free Florida Foreclosure Defense Workshop Wednesday night as the real estate market and foreclosure defense landscape evolves.
Almost half of South Florida homeowners are facing negative equity in their homes, and more than 400,000 Florida foreclosure cases are expected by the end of 2010, according to real estate attorney Roy Oppenheim.
More than 40 South Florida homeowners turned out to hear the latest legal techniques and strategies Oppenheim Law is using to defend foreclosures, execute short sales, prevent deficiency judgments and keep people in their homes.
We’ve put together a summary of the main points from March’s Workshop, and look forward to seeing you at the next free event on April 1st at 6 p.m.
Social stigma is so yesterday. The fact that so many people are being affected by this real estate crisis completely erased the social stigma associated with foreclosure.
Banks are overwhelmed. The depth and breadth of this crisis makes it difficult for banks to successfully foreclose homeowners who are represented by counsel.
Do what’s right for you and get help. If it no longer makes economic sense to continue paying your mortgage, your best option is to speak to a qualified attorney.
Don’t leave. Whatever you chose to do, stay in your home as long as possible.
Banks warming up. Short sales are emerging as one of the best options for homeowners facing foreclosure, and believe it or not, banks are beginning to favor them as well. Some short sales are being approved in less time than in the past. One need only be 30 days behind on your mortgage to begin the short sale process.
The bank is happy with instant cash gratification, while you avoid the hassle and stress of foreclosure proceedings.
Price is right. When executing a short sale, an experienced real estate agent must price your home correctly, and you must protect yourself from a costly deficiency judgment through legal representation.
Know the facts. Deficiency judgments can stay on your record for up to 20 years: Banks may garnish wages and even collect against heirs.
Oppenheim Law has negotiated reductions in deficiency judgments by as much as 80-85%.
It is important to remember that buying yourself time in this real estate market can prove to be incredibly valuable. The tide is beginning to turn as new laws are discussed and the economy makes gains.
Again, 97% of folks facing foreclosure are not represented by counsel. Those who are have a much better chance of avoiding a deficiency judgment and saving their home.
We look forward to hearing your comments on March’s workshop and hope to see you all on April 1 for our next event.
Short sales are emerging as a formative foreclosure defense strategy, according to Florida real estate attorney and legal blogger Roy Oppenheim.
Join Oppenheim Law at the next Free Legal Real Estate Workshop on Wednesday,March 3, as Oppenheim explains how short sales can prevent Florida deficiency judgments and provides insider tips for buying and selling Florida real estate in this turbulent market.
What: Short Sales, Deficiency Judgment + More: Free Legal Workshop
When: Wednesday, March 3, 2010 – 6:00 to 7:00 PM
Who: Homeowners facing foreclosure, real estate professionals, buyers and sellers
Where: 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
For more information visit the Oppenheim Law News Room to access all of the event’s details. Please feel free to leave a comment if you have any questions or suggestions for the workshop.
Oppenheim Law looks forward to seeing you all on Wednesday, March 3rd.
In the worst of real estate times, opportunity arises even on the courthouse steps.
Buying in the murky foreclosure waters is not quite as dangerous as swimming with the sharks thanks to Foreclosure Title Insurance, says Florida foreclosure defense attorney Roy Oppenheim.
More than 500,000 foreclosure filings entered Florida’s books in 2009, and those properties now saturate the South Florida real estate market. While these economic times are challenging for most, they can be the best time for some South Floridians to capitalize on an unprecedented opportunity who want to purchase foreclosures.
Great news for real estate investors and flippers who were once restricted with the 90 day FHA anti-flipping regulations. Due to the increase in the volume of foreclosures over the past two years, the Department of Housing and Urban Development recently announced that they are waiving the 90 day flipping regulations in 24 CFR §203.37a(b)(2) in order to permit potential buyers greater opportunities to purchase homes and obtain FHA financing. The waiver became effective on February 1, 2010 and will expire on January 31, 2011. This regulation previously restricted the eligibility for end-buyers to obtain mortgages insured by FHA when these properties are re-sold within 90 days following the original acquisition of the property by the seller. This waiver is limited to re-sales that are sold at an arms-length transaction.
There are two caveats to this waiver that you must be aware of. The first caveat is that the waiver is limited to forward mortgages, so it does not apply to Home Equity Conversion Mortgages. The second caveat is when the sales price of the property is 20% or more over and above the seller’s acquisition costs, the waiver will only apply if the new buyer’s lender:
(1) Justifies the increase in value by retaining in the loan file supporting documents and/or a second appraisal verifying that the seller has completed sufficient legitimate renovations, repair and rehabilitation work on the subject property to substantiate the increase, or the appraiser provides appropriate explanation of the increase in property value since the prior transfer of title; AND
(2) Orders a property inspection and provides the inspection report to the purchaser before closing.
A. The lender may charge the borrowers for this inspectio
B. The inspector:
Does not have to be an FHA-approved or a 203(k) consultant
Must have no interest in the property or relationship with the seller
Must not receive compensation from any other party other than the lender
May not compensate anyone for the referral of the inspection
May not receive any compensation for referring or recommending contractors to perform any repairs recommended by the inspection.
C. At a minimum the inspection must include:
The property structure, including the foundation, floor, ceiling, walls and roof;
The exterior, including siding, doors, windows , appurtenant structures such as decks and balconies, walkways and driveways;
The roofing, plumbing, electrical, heating and air conditioning systems;
All interior; and
All insulation and ventilation systems
So to all of you real estate investors… go ahead and buy these lemons and make a profit by selling lemonade.
Oppenheim Law marked its 16th Monthly legal real estate workshop last Thursday and thanks to you – our readers – who attended or brought a friend, we continue to evaluate the real estate market.
For those not able to make the event, I have two pieces of good news for you:
Oppenheim Law is already preparing for our next free real estate workshop scheduled on Wednesday, March 3.
We have a recap of the workshop’s timely highlights
The most important message: things are changing.
Florida Foreclosure Defense is constantly evolving and Oppenheim Law is finding new ways to defend foreclosures every day.
The FL Supreme Court’s ruling requiring mandatory mediation between homeowners and banks already started in Palm Beach and Miami-Dade Counties.
70% of foreclosure cases that go to mediation are settled.
Walking away from an underwater mortgage is no longer a moral decision. The banks were allowed to walk away from their monumental debt and write it off as a “business decision.” Why can’t homeowners do the same?
The crisis in Haiti will likely have an influence on the South Florida real estate landscape. Florida saw similar results after Hurricane Andrew when folks were searching for new places to live. Black Swan events like these are important to consider and watch.
Oppenheim Law stresses the importance of helping homeowners avoid deficiency judgments at all costs. Ignoring the foreclosure notice or moving out is perhaps not the best possible decision you can make.
While 97% of folks facing foreclosure are not represented by counsel, those who are have a much better chance of avoiding a deficiency judgment and saving their home.
We look forward to hearing your comments on our last workshop and invite you to join us on WEDNESDAY, March 3 (A Wednesday for this next month only!)
Real Estate Black Swan Arrives: Free Legal Foreclosure Workshop February 4
The attorneys at Oppenheim Law point to the crisis in Haiti as a “black swan event,” an occasion no one could have foreseen with drastic effects on the South Florida real estate landscape.
Join Oppenheim Law at the next free legal real estate workshop on February 4, as Roy Oppenheim explains how the tragedy in Haiti will affect South Florida foreclosure. The workshop will also provide insider tips for buying and selling Florida real estate in this turbulent market and explain how to avoid deficiency judgments at all costs through South Florida short sales and other Florida foreclosure defense strategies.
What: The Black Swan is Here: Free Real Estate Workshop
When: Thursday, February 4, 2010 – 6:00 to 7:00 PM
Who: Real estate professionals and homeowners facing foreclosure, buyers, and sellers
Where: 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
For more information visit the Oppenheim Law News Room to access all of the event’s details. Please feel free to leave a comment if you have any questions or suggestions for the workshop.
Oppenheim Law looks forward to seeing you all on February 4th.
Some Florida attorneys and other experts sometimes seem to suggest there is no difference between having a Florida foreclosure or Florida short sale on your record or credit report and pose the question:
“Why go through the hassle of a short sale?”
The thought process might be technically correct, but only in a state described as a “non-recourse state.” Florida is not one of those states and is in fact a RECOURSE state. This means the banks can and will likely come after you for the difference between the principal value of your Florida mortgage and the value of your home at the time of the Florida foreclosure sale.
In non-recourse states, like California, people can walk or stay, and either way the banks cannot come after you. In Florida, New York and other recourse states the banks can come after you for as long as 20 years. The banks have the right to try and garnish your wages and bank accounts and even depose you under oath. In fact they can and will likely come after you even if you are long dead. You can read my Op-Ed piece in the Sun-Sentinel for a more detailed description of the difference between recourse and non-recourse states.
However, if you get out by orchestrating a South Florida short sale, you’ll likely be released from the amount the bank does not recover at closing. In fact the reason it is called a “Short Sale” is because the bank is coming up short at closing. Now the Bank has a few options. They can take the hit as they do frequently, and as they may well be required to do according to new rules coming out of the Obama Administration, or they can negotiate some payment plan with you. Sometimes the terms are good, and other times they are truly oppressive. However, remember whatever you negotiate is not written in stone or blood and is unsecured.
Thus, the Bank will likely sell the Note (here we go again) to a hedge fund, or collection agency for pennies on the dollar. So you once again will have an opportunity to renegotiate the terms. And even if you don’t make any payments at all, are the banks really going to spend thousands of dollars to find you, serve you and hire attorneys to sue? Maybe… but my bet is they will first go after the low hanging fruit: the poor folks who never read the Oppenheim Law blogs and now have deficiency judgments entered against them.
So, to recap, The Oppenheim Law bottom line:
Explore a short sale first before throwing in the Florida foreclosure towel.
Just as 2009 ended, the Florida Supreme Court announced a uniform procedure for all newly filed foreclosure cases for homestead properties. While the procedure is not yet fully in place, it should be shortly.
The Court acknowledged the system is not working. Foreclosure filings are expected to reach 456,000 cases in Florida by the end of 2010, a 50% increase from those in 2009. Thus, the Court felt compelled to do something.
My free foreclosure and real estate workshop on Thursday, January 7, at 6 p.m. is designed to review the “Year That Was” and preview the “Year That Will Be” based on the New Rules for 2010.
These new rules mean banks will be taken to task by the legal system. If conducted properly, a homeowner can demand proof of the Note and ownership of the loan prior to mediation. If the bank does not show up at the mediation or does not have a person with “true” authority to settle the case, the Court can issues sanctions against the bank and even hit the bank with attorney’s fees in some instances.
Until now approximately 75% of cases in mediation settled. That number should now shrink since the system will soon be overloaded with mediations. The real question is how to take control of this new strategic tool. Of course, one has to be mindful of the old saying, “Be careful what you ask for.” That will certainly be the situation here.
You need to know your objective and have a plan or strategy. Is your desire to walk away without the bank coming after you, or is it to stay and renegotiate the loan to its new underwater value? Or is it to rent the house and just be able to stay?
Lots of creative options will arise that are good for the homeowner and even the bank. The key is knowing what is best for you and using this new opportunity as a way to fashion your own bailout.
I hope to see you all Thursday night, January 7th, at our free Florida foreclosure defense and real estate workshop as Oppenheim Law helps you achieve a New Bailout in the New Year. Again, I wish you all the best in 2010!
WSJ reporter, James Hagerty, arguably one of the best reporters covering the real estate crisis and with whom I speak with from time-to time wrote a great article this morning concerning professional investors who are going to auction, fixing up the houses and then flipping them for a profit. (Also take the time to look at the slides and related comments).
Unlike the flippers of the past, these folks are true professionals as this IS their business. They are not cops, firemen or teachers by day and flippers by night.
In fact, OppenheimLaw and Weston Title represent a number of these types of professional groups. They are all well funded and clearly taking advantage of the fact that the Banks are drowning in too much stuff and thus many times are clueless to the true value of an asset.
Further, as we have explained before, the Banks would rather get back cold cash now than continue trying to make old loans work through loan modifications, when they know the likelihood of re-default remains high. That is why we at OppenheimLaw and our sister title company, Weston Title, are calling 2010 the “Year of the Short Sale.” Banks actually still do about 20% better according to a recent Federal Reserve study when they allow a short sale to proceed as opposed to the Bank proceeding all the way through the foreclosure process. Of course with millions of homes that have already been foreclosed upon by the Banks, the Banks have to somehow get rid of their unwanted inventory.
One word of caution: if you are thinking of becoming a “professional flipper” do your homework; and do not think for a moment that there is a title company out there that will allow you to use the funds from the final buyer as your source of funds to purchase the property at the courthouse’s steps or in a short sale. That practice is now dead.
Thus, if you are in a position to look at flipping as your way to help bail yourself out from being underwater to treading water with your head up high… call me!
While mortgage modifications continue to be a huge problem for the Obama administration, they seem to be following the advice of the geeks at the Federal Reserve and from the folks in the “Trenches“. (See WSJ Article). You are eligible to do a short sale if (1) you have a government backed loan (Fannie, Freddie, VA, etc.), (2) its your primary residence, (3) you have been turned down for a modification, and (4) you have had the property listed at market price. That means you may get $1,500 from the government upon closing and you get to Walk Away! No Deficiency! Learn more about alternatives to foreclosure and defenses to foreclosure at our seminar tomorrow night at 6:00 p.m.
Oppenheim Law hosted its largest Free Florida Foreclosure Defense Workshop Wednesday night as the real estate market and foreclosure defense landscape evolves.
Great news for real estate investors and flippers who were once restricted with the 90 day FHA anti-flipping regulations. Due to the increase in the volume of foreclosures over the past two years, the Department of Housing and Urban Development 
