There is a silver lining to the foreclosure crisis for those that chose not to go underwater—namely, more people who actually were in foreclosure are now buying again.
How many are actually able to purchase
Unfortunately, the government and housing market does not keep track of the specific real estate numbers. Nevertheless, because of the foreclosure crisis many who never thought that they would get a second chance at the American Dream of buying a home are now.
How are these homeowners doing it
Simply put: Chances of home ownership depend upon the silver lining. Reports indicated that for those who went bankrupt and added the foreclosure in their bankruptcy have to wait four years. Folks that sold via short sale need to wait two years. How one got rid of the distressed property and one’s current financial status are relevant to the bank’s review.
The great irony is that those who were shunned by the banks are now bolstering demand for home purchase. The same lenders that were unwilling to work out loan modifications or waive deficiencies are now willing, given the circumstance, to lend again to those so shunned. The economy is and will continue to be aided by those who were formerly in foreclosure.
As we have said all along, we all should be able to realize the American Dream of home ownership. Perhaps now the banks are beginning to realize that each case should be reviewed on its merits before summarily making decisions that have wide ranging implications.
In a recent article, Paul Owers from the Sun Sentinel explains that, “depending on credit scores homeowners can get new mortgages without waiting seven, two or even one year before qualifying for another mortgage.”
Furthermore; most importantly, for those who chose to hang onto their underwater property at all cost and let it drag them under may want to reconsider their strategy and take note of their fellow neighbors who threw in the towel a few years ago.
Real estate and foreclosure defense attorney, Roy Oppenheim left Wall Street for Main Street, founding Oppenheim Law along with his wife Ellen in 1989 in Fort Lauderdale, Florida. He also is vice president of Weston Title and creator of the South Florida Law Blog, named the best business and technology blog by the South Florida Sun-Sentinel. Follow Roy on Twitter at @OpLaw or like Oppenheim Law on Facebook.
The following article was written for HousingWire by Kerri Ann Panchuk on June 18, 2013, and is being republished in the South Florida Law Blog with comments from real estate and foreclosure defense attorney Roy Oppenheim .
When Florida’s Governor Rick Scott signed House Bill 87 – the so-called foreclosure Rocket Docket bill – he had no idea he was opening another can of worms and potentially giving foreclosure defense attorneys more tools in their arsenal to delay foreclosures.
The bill was passed into law to deal with Florida’s drawn-out and troublesome foreclosure process. HB 87 aimed to streamline the foreclosure process, enacting reforms at the legislative level to jump-start foreclosures and expedite the process in one of the states hit hardest by the foreclosure crisis. (Click here to read more about the changes).
But while the bill has created procedural demands that challenge attorneys on both sides of a foreclosure, the bill itself could ultimately fail in its quest to speed up foreclosures in Florida, says foreclosure defense attorney Roy Oppenheim with Oppenheim Law.
Along with the many procedural changes, Oppenheim says the bill built in a series of potential constitutional violations that a foreclosure defense attorney could easily utilize as a tool to aid homeowners when challenging a foreclosure.
“They have given us new quivers in our satchel to use against the banks,” Oppenheim told HousingWire. “There is ambiguity, and it’s created confusion.”
Oppenheim says opportunities for constitutional challenges are scattered throughout the bill—namely in the fact that there is an allocation of judiciary responsibilities to the legislative branch in some cases. In addition, potential property rights issues are peppered throughout the bill, creating potential due process, equal protection or illegal takings claims under the Constitution. Other parts of the bill are retroactive, which is another constitutional issue, Oppenheim said.
Real estate defense attorney Roy Oppenheim includes excerpts in the following article, written by Kimberly Miller, Palm Beach Post, Friday, May 31st, 2013, and republished in The South Florida Law Blog.
Response in support of the plan, HB 87, narrowly outpaces those fighting the bill, which passed both chambers during the 2013 legislative session after years of debate and compromise.
Calls in favor of the legislation stood at 632 on Thursday, with opposition calls at 563.
Scott has until June 12 to take action on the bill, or he can allow it to become law without his signature. He’s been asked by homeowner advocates and Sen. Darren Soto, D-Orlando to veto the legislation on grounds that it violates historic property rights laws and puts more onus on the homeowner to prove why he or she shouldn’t lose their house.
“In the middle of the game this law would change the rules of current engagement of existing trials before judges,” said Oppenheim Law, South Florida real estate [foreclosure] defense attorney Roy Oppenheim, who opposes the bill. “This will only create more uncertainty and a host of new issues will ultimately arise.”
Proponents of the bill say it will streamline Florida’s meandering foreclosure process, making it easier to foreclose on abandoned and vacant homes while helping homeowners by reducing the amount of time a bank can pursue a borrower for unpaid debt from five years to one year.