Posts Tagged ‘florida foreclosure’

The New Normal… NYT Reports: Expect Four Million More Foreclosures Despite Obama’s Mortgage Modification Policy

Friday, October 9th, 2009

In today’s New York Times (10/9/09) the lead story in the Business section is: “In Trial Phase, Mortgage Bills Fall for 500,000. Is that supposed to be good news or news at all? I am not sure. I guess it depends on whether you think the glass is half full or half empty.

The reality is that by now the Obama administration had anticipated (or promised) about 5 million modifications: not 10 percent of that number!

So the real news is that Mark Zandi, chief economist at Moody’s and one of the top real estate prognosticators in the US is fully anticipating another 4 million foreclosures, as reported in the article today. Now I call that News. That’s right four million! Thus, one can expect at least 35% of those foreclosures to occur right here in Florida.

Further Peter Goodman, the NYT’s reporter failed to actually discuss the percentage decrease that occurs s in modifications or whether there was material principal reduction to date. Well I will tell you: the average successful mortgage modification is between 20%-22%. Little if any principal is reduced. Thus we can anticipate that many of these half million modifications will become part of the 4 million in foreclosure. In fact, based on prior studies, modifications without principal reduction lead to foreclosure half the time.

So don’t expect real estate values to start increasing any time soon as long as folks keep losing their homes. Yes, the economy is no longer in free fall and things are better than last fall: Stock market is rising, retail sales have stopped falling and job losses are decreasing. However, until people are employed and can afford their houses payments again and there are meaningful principal reduction or forbearance of underwater equity nothing much will change. The folks who brought us this mess: the politicians and regulators in Washington, the “bright minds” on Wall Street and the banks, will have to first realize that keeping people in their homes is better for them and for the rest of us too. Welcome to the New Normal.

From Deep in the Trenches,

Roy Oppenheim

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Posted in Florida Law News, Florida foreclosures, Foreclosure Defense | View Comments

Deficiency Judgments “Are a Comin”… Say it “Ain’t So”:

Friday, September 11th, 2009

You can run but you can’t hide from Florida’s deficiency judgments….

While it’s now well accepted that 98% of Florida homeowners in foreclosure are just walking away and putting their head in the sand, it is now becoming apparent that while these folks can run, but they probably can’t hide.

Definition of a deficiency judgment according to Wikipedia:

A deficiency judgment is a judgment lien against a debtor, defendant or borrower whose foreclosure sale did not produce sufficient funds to pay the mortgage in full. This option may or may not be available to the lender, depending on whether they have made a recourse or nonrecourse loan.

Until now, there was some uncertainty whether the banks were going to pursue deficiency judgments from Florida homeowners. Well the evidence is becoming clear that many banks will pursue and ARE NOW pursuing these Florida judgments post-foreclosure.

For the uninitiated, in Florida and other “recourse” states, a Bank would be entitled to obtain a judgment against you for the difference between the mortgage amount and the value of the property. In other words, if your Florida real estate property is worth less than the mortgage the Bank can come after you for the difference. In non-recourse states, like California, the Banks can not do that. Florida is a recourse state and the Banks may have up to five years to bring the action. Although if the Bank doesn’t bring the action within one year after the Florida foreclosure sale, it can be argued that the Bank failed to diligently pursue the case and the Court “could” in theory dismiss the action for failure to prosecute. I say good luck on that one!

Thus, that is why we have been so aggressive in defending Florida foreclosures. A settlement, short sale, modification, deed-in lieu, mediation, bankruptcy or a creative combination of these options, is still better than a bank pursuing you and trying to hunt you and your assets down for 20 years! That’s right 20 years!

So its simple, act like an ostrich… put your head in the sand… deny the facts or fight back! I guess as a kid from the Bronx I know what I would do… “cause you ain’t seen nothing yet”. LOL

Roy Oppenheim
Florida Foreclosure Defense Attorney
From the Trenches

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Posted in Florida Law News, Florida foreclosures, Foreclosure Defense | View Comments

Tonight: Free Real Estate Buying and Selling Workshop

Thursday, September 3rd, 2009

I’m a firm believer in word of mouth advertising. What a better way to get a referral than from a trusted friend? Since 23% of home loans in Florida are in foreclosure or behind on mortgage payments, chances are you know someone I can help.

Tell your friends to join us tonight for a free workshop and learn 10 Tips to Survive in today’s real estate market.

What:     Free Real Estate Buying and Selling Workshop
Who:      Homeowners and Realtors
When:    Thursday, September 3, 2009, 6:00 to 7:00 PM
Where:   2500 Weston Rd Ste 404, Weston, FL 33331
RSVP:     To register please email roy@oplaw.net or call 954.384.6114

Tonight’s workshop will be split into three strategy segments: buying Florida real estate, defending Florida foreclosures, and investors looking for opportunities.

Please feel free to pass this on to someone you know and for more information view the full press release.

See you tonight!

Roy Oppenheim

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CBS4 Foreclosure Hotline Tonight: Avoiding Foreclosure

Monday, August 31st, 2009

Attorney Roy Oppenheim from foreclosure defense firm Oppenheim Law will be taking questions tonight live from CBS4 during its foreclosure defense hotline.  South Floridians are encouraged to call in to CBS4 from 5:00 to 6:30 PM tonight with their Florida foreclosure questions.

Topics discussed include: foreclosure defense, mediation in foreclosure, loan modifications and loan modification scams.

What: Foreclosure Hotline: Ask Questions, Get Answers
When: Tonight, Monday August 31, 5:30 – 6:00 PM
How: Call CBS4 305-597-4404 and speak to a foreclosure attorney
Why: Learn how to prevent foreclosure, get free foreclosure advice, ask questions about short sales and Florida real estate

Roy Oppenheim will be in good company tonight at CBS4 with Geoff Sherman, also a foreclosure defense attorney at Oppenheim Law. Be sure to call in tonight (305-597-4404) from 5:00 – 6:30 PM for your free consultation.

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Posted in Florida real estate, Foreclosure Defense | View Comments

Florida Unemployment Indicates 10 is the new 5

Wednesday, June 24th, 2009

Is 10 percent the new five percent when it comes to unemployment rates just like 50 is the new 30 in age?  Roy Oppenheim says, maybe so.

As the index of leading economic indicators shows signs of life, including an increase in new housing starts and in Florida an increase in residential housing sales, it seems odd that no one is noticing that 10 is the new five.

The unemployment rate in the state of Florida just last week hit 10 percent. This is also the number of people in the United States who are at least one month behind on their mortgage payments. And in Florida, 10 percent is the number of people that are actually in the process of foreclosure.

Only just a few short years ago all of these percentages were at five. Five percent unemployment and less than five percent of households that held mortgages were behind in payments. Not even five percent of the population was in foreclosure.

Well that was then and now is now.

The last time the United States had a 10 percent unemployment rate was in 1982; the year I was graduating from college. That is along time ago.

The trouble is that with increasing unemployment, banks will not consider loan modifications if the borrower does not have a job or income. That may come as a surprise to many since a lot of homeowners got their mortgages without showing any income to the bank.  However, this time around is more like a ‘bate and switch.’ The rules have changed and guess who ends up holding the bag: YOU!

So lets all hope that if 10 really is the new five that we all have enough time to dig our selves out of these holes and pray that 50 is truly the new 30, since many of us will be working till we are in our 70s!

From the trenches,
Roy Oppenheim

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President Obama Speaks about the Economic Crisis as Lost Promissory Note Defense to Foreclosure Tops Google Searches

Wednesday, February 25th, 2009

The President made it abundantly clear last night that one of the bailout’s fundamental purposes is to help troubled homeowners who need to refinance their homes, thereby preventing foreclosure.   Yet one of the most popular Google searches yesterday concerned one’s ability to delay or stave off a foreclosure by demanding the foreclosing bank produce the original Note.

In fact the other day in the same chamber where the President spoke, Congresswoman Marcy Kaptur from Ohio begged residents throughout the US to not just walk away from their foreclosed homes, but  to fight and hire a “good lawyer” that  can go up against the Wall Street attorneys! The video is circulating the internet like wildfire and the related search terms have hit the top of the Google Chart. See the video for yourself.

I was flawed to see a Congresswoman advocating our hypothesis or thesis on the floor of the United States Congress! Nothing feels better than a little positive reinforcement.  The issue of lost notes and lost mortgages is a fundamental constitutional issue concerning due process and jurisdiction.


So as President Obama tries to tackle energy independence, education and healthcare… all at once, the public is trying to figure out how to keep their families from losing their homes to foreclosure since the President has little to offer those folks in the stimulus package for now.  So… it is for the time being up to the lawyers to fight this battle.  As the President noted, as Americans, we are up to the challenge.

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Posted in Entrepreneurial News, Florida Law News | View Comments

Academy Awards, Super Bowl and Loan Modifications

Monday, February 23rd, 2009

Last night I actually watched the entire Academy Awards with my family. I don’t remember the last time I ever did that… from the opening number to the Best Picture. This year, I also watched the entire Super Bowl… This is very unusual for me. Then again… we are in truly unusual times. Both of these national events somehow seemed to bring comfort… like apple pie, or chicken pot pie to the national ethos. It felt like we are all one and share a common past time. Last night was truly entertaining, no unnecessary bad jokes or deriding cracks about our government.

But enough of that… lets get back to the issues at hand. On March 4, the Obama Administration will release its details concerning how folks will be able to modify or refinance their mortgages. According to the Sun-Sentinel and Zillow.com, only about 17 percent of South Florida will have enough equity in their homes to refinance. Of course, those won’t be the people facing foreclosure.

You can’t be more than 5 percent underwater. In other words, if your outstanding mortgage principal balance substantially exceeds the value of your home, you will either have to hold on for dear life, do a short sale, or hope that your bank comes to its senses and realizes that a foreclosure is not the answer and will modify your loan by taking a principal reduction haircut.

In fact, we are seeing an entire new industry emerging. Former mortgage brokers, bankers, realtors, real estate attorneys, and appraisers are beginning to organize to assist homeowners with their loan modification needs, especially once the government’s program is announced on March 4, 2009.

In fact on March 5, 2009 we will be conducting one of our monthly free Florida Foreclosure Defense Workshops.
In the mean time, it appears the new government program will be of no use to you if you fall into one of the following categories:

  • Investor Property
  • Second Mortgages, Equity Lines
  • Second Homes
  • Jumbo Mortgages
  • Too Little Income
  • Too Much Income

So… continue to stay tuned! In the interim, continue to enjoy events like the Oscars as they provide a good escape.

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Obama to Florida’s Foreclosure Rescue? or Not?

Wednesday, February 18th, 2009

Today the Obama Administration dipped its big toe into the foreclosure quagmire by announcing a number of moves that will try to keep people in their homes who still have jobs or income. Therefore, residents experiencing Florida foreclosure will be able to modify their loans, refinance, or with Congressional approval, modify the amount owed to the banks in bankruptcy.

President Obama’s plan is real and politically, a good start, but the announcements today will most likely not fully abate the real problem .

Here’s why:

The residential real estate market lost $8,000,000,000,000. Yes. $8 trillion in equity! Caused by lots of irresponsible borrowing, lending and speculating.  There is enough blame to go around here. So lets stop playing the blame game.

The government’s plan is, of course, trying to reward the homeowners that have continued to make their monthly payments even if they are under water. That is a great thing, even admirable.  It addresses the whole moral hazard issue of not rewarding the rascals – like the government initially did with Wall Street.  But $75 billion is less than 10 percent of the amount of the problem. I am not saying that the Obama Administration should do anything different, just that it’s amazing that this wound has taken until NOW to be tended to! Now, that does not mean that the patient is getting better .  Just maybe… NOT ANY worse.

I still say it will be the first time homebuyers, the bottom fishers, and the people who keep paying their loans that will truly bail out the economy. So thank you President Obama on behalf of my friends in the title business and the refinance industry for putting life back into our livelihoods.

What this all means for the guy who lost his job and really can’t afford his old lifestyle I am not sure. Actually I am sure; it means too little too late.

We will be addressing the foreclosure rescue plan and how it can help YOU at our monthly foreclosure workshops. The first one is March 5th 2009. For more information read our foreclosure workshop press release.

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Moral Hazards: Rewarding the Stinkers!

Monday, February 9th, 2009

People are constantly asking me how we got into this economic mess, which is a byproduct of so many folks in foreclosure.  My answer is simple… but direct … how did we get into Iraq?  The answer is who cares? How do we now get out?

But there is a striking difference between these two fiascos: The economy and Iraq is that with the latter  we are actually rewarding bad behavior– otherwise known as moral hazards.

The term “Moral Hazard”s is derived from the casualty (fancy term for fire) insurance industry. It seems that whenever the economy is bad and property values dip there is a “strange” phenomenon… more buildings burn down that have an insurance policy that is greater than the value of the property!

So where is the moral hazard in terms of the economy?  Its all over the place… it is the Bail out itself!!!  Let me briefly explain. Our largest banks and investment banks took on such huge amounts of risk and encouraged such reckless lending practices that they kept telling the small guy….’DON“T WORRY WE ARE TOO BIG TO FAIL!”  In other words if we screw up the government (code word for you and me) will have to come to the rescue of these banks!  And we are! Each family has already lent in future savings and earnings from our children and grandchildren probably about $20,0000 to these banks!

BUT how are these banks and more importantly the individuals who ran these banks being punished? Oh… pay them exit bonuses of a few billion dollars… while my clients, builders, developers and individual families get foreclosed and have to face financial ruin.  Some will say… well your clients didn’t have to borrow the money in the first place? And my response is as follows:

Between a large multibillion dollar institution and a small borrower who has more information about the market? Who as a multi-national enterprise knew how these loans were being packaged, stripped and sold to unsuspecting investors around the globe? Who had a better idea that if this all came crashing down… it would be the small guy who would take the fall?

Bankers have a unique responsibility to their borrower… because  they are in a superior position  in terms of such enterprise knowledge, They may well have a legal duty as a fiduciary  (look it up–lol)  not to put their client knowingly or negligently tied down and blind folded in front of an oncoming freight train.

So… do I feel bad keeping my clients in their homes while I defend them against their morally deficient banks who are trying to kick them out of their homes?  You answer that!

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A Day in Court Defending A Foreclosure

Thursday, January 22nd, 2009

OK… so I go to court on Tuesday morning for what is called motion calendar. That is where you get maybe unto 5 minutes of face time with the Judge. We were there to move to dismiss a foreclosure for numerous procedural or due process grounds: including the fact that the note was lost and then assigned without recorded proof in the public records of an assignment of mortgage as well as other more technical grounds.

The other attorney had about 15 files stacked so high they partially obscured his face. He was a “Rent-A-Counsel” since the foreclosure was prepared on the other coast of Florida by a Foreclosure Mill. After hearing our argument, the judge read the motion and then decided to defer a ruling by putting the matter on a “special set calendar” in several weeks. The other counsel was silent since he was not knowledgeable about our case nor had he read our motion.

Interestingly, I suggested to the judge that it was likely that the other 14 files had similar problems and that some judges in other parts of the country have begun to look at actual paperwork being thrown together by the banks as part of their “foreclosure filings.” I asked the judge what he thought of that… and he commented in a tone that was partially sarcastic that it was not his role to look at each file if a party chooses to be unrepresented… but that “I should or could represent all these people!” I inquired why some judges elsewhere were taking it upon themselves to look at each file while in Florida the judges were not doing that. Now… getting annoyed he asked why he was even having this philosophical discussion with me and quickly whisked me out of his courtroom.

The good news though is that my client now gets to continue living in his home for another few months!

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