Posts Tagged ‘Foreclosure Defense’

Senate passes bill speeding up foreclosure process

Tuesday, May 7th, 2013

The original article was written by Adolfo Pesquera, Daily Business Review, May 6, 2013 with quotes from Roy Oppenheim republished in part in the South Florida Law Blog.

Florida Senate passes legislature bill. The Florida Senate sent a mortgage foreclosure bill to the governor Friday with a goal of accelerating foreclosures.

The Senate version was tabled Thursday in favor of Florida House Bill 87, which passed the House by an 87-26 vote April 29.

The legislation, which was pushed by State Rep. Kathleen Passidomo of Naples, was positioned as a way to stabilize South Florida’s housing market. It reduces the Florida statute of limitations for deficiency judgments on a foreclosure action to one year from five years and requires the person filing the foreclosure to give the court information about lost, destroyed or stolen promissory notes as a safeguard against wrongful filings.

Real estate defense attorney Roy D. Oppenheim said the governor may veto the bill because it is retroactive, a condition that led him to veto an alimony bill that passed the Legislature by a super majority.

Oppenheim, managing part of Oppenheim & Pilelsky in Weston, accused the bill’s supporters of passing it through a process of smoke and mirrors.

It skipped the Senate appropriations committee, and “they presented the House bill as the Senate bill, he said.

“Talk about craziness, Oppenheim said. “The process has been so shameful and disrespectful to the order of law and our Constitution.”

Foreclosure defense attorneys generally opposed the bill because it would expedite the foreclosure process by cutting down the time homeowners have to defend themselves and by holding expedited trials.

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Bill to fast track foreclosures has sparked a rare internal Florida Bar fight

Friday, March 29th, 2013

Below is a condensed version of an article written by Paola Iuspa-Abbott in The Daily Business Review. which included Roy Oppenheim .

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A controversial bill that aims to fast track foreclosures has sparked a rare internal fight among members of an influential Florida Bar section.

On one side are Bar members who assist homeowners facing foreclosure. Opposing them are members of the Bar’s Real Property, Probate and Trust Law Section who not only decided to support the foreclosure bill this year but also hired a lobbyist to get the bill passed in Tallahassee.

Members of the Real Property section say the bill offers many new protections to distressed homeowners and buyers of repossessed homes.

HB 87 is moving quickly through the House. But SB 1666 still needs to clear three Senate committees before it would receive a full vote.

“Under this bill, the presumption of innocence would be destroyed,” Oppenheim said.

This is the fourth year in a row a bill seeking to expedite foreclosures is before the Legislature.

In the past, Oppenheim was among Bar members who reviewed any proposed foreclosure legislation.

“Last year, we had people on my subcommittee who agreed with me that we didn’t like a lot of the stuff in the bill, so the Bar never agreed to approve or disapprove anything,” Oppenheim said, citing a measure that passed the House but died in the Senate for lack of action.

He was part of the section’s Mortgage and Encumbers Subcommittee until last year, when it was dismantled without notice, he said. The section was restructured and the Foreclosure Reform Ad Hoc Committee was created to help shape the proposed legislation. Oppenheim claimed he was left off the ad hoc committee because of his history of opposing foreclosure bills at a time when the section was eager to see the bill pass.

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Florida’s Hardest Hit Program Not Providing Real Relief; Long-term Solutions Needed

Thursday, January 19th, 2012

Back when it debuted last April, we were somewhat skeptical that Florida’s Hardest Hit program could provide real benefits for the people it sought to help.

We called it a band-aid, and at least for some South Florida homeowners, it’s proving to be just that. The Palm Beach Post profiled several homeowners who were among the first to receive benefits from the program. Sheryl Stuart, a Jupiter homeowner whose business went under, applied for help through the mortgage relief program, and is about to see her payments end next month. Hardest Hit only entitles qualified homeowners up to six months of mortgage assistance.

Stuart told the Palm Beach Post that even though she’s found a new job, her salary won’t be able to cover her mortgage payment once she stops receiving aid from Hardest Hit. She’s frustrated that she’s about to be right back where she started when she applied for aid in the first place.

“In this economy, to think you can turn your life around in six months is totally ludicrous,” Stuart said in the article, “The working class is quickly slipping into a black hole.”

The truth is this program, however well-intentioned it might have been, is just not enough. What Hardest Hit is essentially doing is giving homeowners a nice seafood dinner, when they really need to learn how to fish.

It scratches the surface but for people like Stuart it might just delay the inevitable. Unless you’re giving homeowners a solid two years of payment relief, you’re not giving these people time to go back to school, improve their financial standing, and really turn their lives around.
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Principal Reduction: Why Banks Don’t Do It More + What’s Wrong With It

Saturday, July 16th, 2011

There are quite a few people who advocate principal reduction as the best way to get out of the housing crisis. Their arguments were succinctly laid out and analyzed in an Atlanta Federal Reserve white paper.

Advocates of such a policy argue that it would be cheaper for banks to reduce the principal of a loan to the current value of a house because people who have positive equity in their homes are much less likely to default on their loans. The policy would also help homeowners because they would get to stay in their homes. It seems like a win-win situation, except it isn’t.

As a recent New York Times article illustrates the difficulty with large scale restructuring programs is that banks don’t know who really needs the help and who is trying to take advantage of the situation.

Ms. Rula Giosmas was not one of the people who needed help, yet she got it anyway. For her lender, the modification amounts to an avoidable loss. The lack of knowledge in who can pay and who can’t is the reason why banks are wary of initiating large scale modification programs: not all underwater borrowers will default on their mortgages.

It still remains economically advantageous to foreclose on the defaulters and continue to collect the full loan amounts from the people who can and will pay. The banks also worry that if they do initiate large scale modification programs, it will encourage people who can pay to miss payments simply to qualify for the principal reduction. Such a problem is called moral hazard, where there are incentives to perform badly. The last thing that banks want is to encourage people to default.
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