Maybe you weren’t convinced the first time I told you the era of the short sale was finally upon us.

I can’t blame you for thinking that banks were acting irrationally when it comes to the foreclosure process.

But Lender Processing Services just offered up the most convincing numbers to date that short sales are no longer just some pie-in-the-sky dream for distressed underwater borrowers.

For the first time in the US, LPS says there were more short sales in a single month then there were foreclosures.

In January short sales made up 23.9 percent of home sales, while foreclosure sales made up 19.7 percent of all home purchases.

Of course that means that over half of all real estate closings are for distressed homes.

A year before, the percentages were skewered in the opposite direction. In January 2011, 16.3 percent of home purchases came through short sales, and 24.9 percent were foreclosures.

Why are the banks now convinced, as I was long ago, that going through the long and harrowing process of a foreclosure is not their best option?

The proof is once again in the numbers. On average, foreclosed homes sold for 29 percent less than non-distressed properties in January.

Homes sold via short sale? They went for 23 percent less. Here in Florida, LPS says short sales have outnumbered foreclosures since July.

That means short sales are a better deal for the banks, plain and simple.

The truth is banks don’t want to own these properties, they certainly can’t handle maintaining these homes, and they just end up laying waste to neighborhoods by hanging on to them.

It’s just better for banks to sell the home and get a new buyer inside, rather than engage in a legal battle with a homeowner over whether they even have the right to foreclose in the first place!

And it’s better for homeowners who want to walk away from their homes, because they can do so legally, and leave the threat of foreclosure behind for good. It’s simple logic, yet it took the banks eons to come to this conclusion.

At Oppenheim Law we’ve saved homeowners over 22 million dollars in deficiencies. Homeowners are able to walk away from their obligations without any lingering repercussions of a deficiency judgement chasing them around for 20 years.

The bottom line it’s just sound business sense for banks, and its the best way to legally walk away from your underwater mortgage.

From The Trenches

Roy Oppenheim

In my last blog I railed against the Florida Fair Foreclosure Act, which is making its way rapidly through the Florida Senate as the session winds down.

I said it’s being pushed by banking industry shills and should die a quick death.

So of course it was passed by the Senate Banking and Insurance Committee by a 6-4 vote and will now be headed to a full vote before the House and Senate.

Thanks guys! With friends like that…..

But after a moment of reflection and enlightenment, I have this to say to my friends in Tallahassee.

Bring it On!

That’s right! Pass the Bill.

My phones have not stopped ringing these days, as more and more clients are getting ready to lawyer up.

That’s right this bill will only increase the value I bring to my clients each and every day for without an attorney the Legislature will make sure that the “Florida Fair Foreclosure Act” is fair… for the banks … but not for you.

They will make sure that without counsel that you will be stripped of your right to defend your home. Without counsel the new law will ensure that you will go through a legal system that will resemble a steam roller.

It makes me laugh that the Legislature is entrusting the banks to not commit fraud once again. Because the honor system worked so well the last time.

But its sad that the Legislature is interfering with the independence of the judiciary by telling the courts what to do and how to do it.

Please, please try your best to pass the Florida Fair Foreclosure Act, because all you’ll be doing is making sure I’ll have a new stream of clients to defend, and more importantly be able to help the economy by hiring more people.

Unfortunately it just goes to further my point that the banks will try take advantage of homeowners every chance they get, and you still need representation to fight them.

The banks haven’t learned anything from the robosigning fiasco, and are still trying to find shortcuts. They will do whatever they can and grease any palm in order to make things easier for them.

And unfortunately, there are still plenty of politicians willing to offer one.

So once again to the politicians in Florida’s capital I say, pass the Florida Fair Foreclosure Act. You’re going to do it regardless of what I say.

But remember, I’ll be waiting for you, your enablers– the banks, and so will be my new clients!

Photo by The-Lane-Team

Banks need to get their massive foreclosure backlog off the books. There are over 368,000 cases in Florida. I get that.

Getting these properties into the hands of families who can afford them, that is what I want to see. It’s needed to jump start the economy, and no one wants to see the banks out of the neighborhoods more than me.

But it can’t be allowed to happen on the backs of other homeowners plain and simple. Lenders have tried to thrust these homes back onto the market before, and that’s why they just shelled out $25 billion.

The banks were penalized for being unethical, untrustworthy and fraudsters, and it doesn’t look like they have learned their lesson.

Yet a series of proposed bills now making their way through the Florida House and Senate offer banks unjust control over the foreclosure process, all in the name of getting abandoned homes back on the market.

The Senate version, which would create the “Florida Fair Foreclosure Act”, was passed by a judiciary committee earlier this week by a 5-2 vote. There is a similar bill making their way through the House.

But are they really ‘fair’ to homeowners? Absolutely not.

These bills are being pushed by banking industry shills. They make it easier for lenders to foreclose, and allows them to do so faster.

Have the politicians in Tallahassee learned nothing from the settlement? The $25 billion isn’t even in the mail, yet some are back to their old tricks, turning a blind eye to the plights of their constituents and denying them due process.

Sounds awfully familiar to me!

What these bills do is allow for more expedited foreclosures. Under the Fair Foreclosure Act, if the banks consider a property to be abandoned or if the homeowner does not respond within 20 days of being served, a judge has no choice but to rule for a final judgment of foreclosure right then and there.

A judge’s gavel would be nothing more than a rubber stamp, yet again.

The language of what constitutes an abandoned home is just too vague, and it is vague because the banks crafted it to be that way.

What are these criteria? If there is too much trash, if at least two neighbors say the home is abandoned, and if no one can be reached at the home at different hours of the day over a 72 hour period are among a few of them. And only two of them would need to be met for a home to be considered abandoned.

The people who help determine if homes meet those criteria, they all work for the banks, not the courts, not you. This bill offers the banks impunity with absolutely no oversight.

It’s a classic example of the fox watching the henhouse. If the banks present faulty ‘criteria’ that they developed, what chance do you have?

Even if your home is later ruled to have been fraudulently taken, your only recourse under this the Florida Fair Foreclosure Act would be monetary. You don’t get your house back, and the banks would be the winners, yet again!

Judges may not like seeing a logjam in their courts, but there is a reason a foreclosure takes a long time. It’s to prevent homeowners rights from being trampled.

Now the Florida Fair Foreclosure Act does have some provisions that are beneficial, namely that they would greatly reduce the amount of time that banks would have to recoup any unpaid mortgage debt, otherwise known as a deficiency.

Banks would have only one year, as opposed to the 5 they now have to seek a deficiency judgment.

That’s not worth the chance that even one homeowner might unfairly lose their house. Once again expediency is being promoted in exchange for fairness, dues process and constitutional rights.

Let’s hope the Florida Fair Foreclosure Act dies a quick death. I doubt it though.

If there was anything positive that came out of the prolonged discussions between the states and the banks on the mortgage servicing settlement, it was that banks were reluctant to go full steam ahead in the foreclosure process while talks were ongoing.

But even before the settlement was announced, we saw signs that pointed to more foreclosures in 2012.

According to RealtyTrac, there were 24,783 foreclosure filings in the state of Florida in January, a 14% percent rise from January 2011, the first year-over-year increase in over a year.

Now that the settlement has been agreed to, the training wheels are off.

It’s petal to the metal folks. One thing that the settlement does for the banks is provide them a blueprint for how to proceed in the foreclosure process without getting their fingers stuck in the cookie jar.

Which means borrowers will once again have to defend themselves just as rigorously as they did pre-robosigning.

I’ve been asked if the settlement changes my advice to homeowners, to which I reply, ABSOLUTELY NOT!

You must continue to stand your ground. If you are in foreclosure or about to enter foreclosure, I will say what I have always said, you must fight the banks and force them to kick you out of your home.

The settlement may have changed the rules for the banks, but it shouldn’t change the rules for you, the homeowner. The banks will not transform into wonderful and charitable companies just because the settlement might penalize them.

Make no mistake about it, they will continue to come at you and come at your hard.

So allow me to reiterate my advice to you, the borrower.

Get legal representation if you need it and force the banks to kick you out. Settlement or no settlement, you still have the choice to modify or do a short sale or stay and fight.

Just because the settlement exposed much of the banks misconduct does not mean you will automatically be off the hook.

Unless there is a sheriff’s deputy at your door, do not give in.

If there is proof your mortgage was caught up in a fraudulent securitzied trust, you have a much better chance now of halting the foreclosure process outright. Courts have finally caught on to the banks illegal behavior and they can’t hide behind the bench as they have done before.

Of course you won’t have your case dismissed if you don’t, say it with me now, STAND YOUR GROUND.

If a dismissal seems unlikely, then you should look at a short sale. They are on the rise and many banks will offer you substantial cash, as much as $35,000, if you agree to sell your house back to the bank.

Lenders are willing to let you walk away from your underwater mortgage if you do so legally.

That way you can get a fresh start in a more affordable home or in a rental property. But don’t expect them to make such an offer if you move out the minute you are unable to afford your mortgage. State your case, and STAND YOUR GROUND.

Your third option is to seek a loan modification or mortgage relief from the government. There are more government programs than ever, in part because of the mortgage settlement.

While many of them have not been successful in the past, the settlement has pumped more money into these programs and you have a much better chance of qualifying and ultimately staying in your home.

But remember you can’t qualify for these programs if you move out.

Stand your ground, and fight the banks.

In The Trenches

Roy Oppenheim

Some feel like what the banks have done to the American homeowner is criminal. And they just might be right.

According to a investigation by CBS I-Team reporter Al Sunshine, 50 state attorney generals are investigating the foreclosure debacle. As it turns out, the bank you borrowed money from probably does not own your mortgage anymore. Many mortgages have been bundled up so they look safe for investors and then sold off, Sunshine says.

He estimates 95% of mortgages are now controlled by what’s called a servicer, which is a bank or financial company which handles your mortgage and monthly payment. They are the ones who collect fees and penalties from home owners, and according to Sunshine’s report, they are the first ones to make yet more money when a home is foreclosed.

And therein lies the problem with the mortgage system, foreclosure attorney Roy Oppenheim told Sunshine.

“It was in their interest to have the foreclosure go through the process versus a modification,” Oppenheim explained. “Typically the way the servicers were compensated, they would receive more compensation through a foreclosure than through a modification.”

So the interests of the borrower are in constant conflict with the interests of the servicer. Since they are often not the bank that lent you the money in the first place, there is little risk to them, and foreclosure is better for their bottom line.

“The whole process is wrought with conflicts of interest. It’s just a rotten bag of apples,” Oppenheim concluded.

If this is the boat you’re in right now, Oppenheim Law is here to help. Click here to view the entire story on CBS4: The Secret Truth about Foreclosures, or check out the video below:

With the ever-changing real estate market, many South Florida residents are left with questions and concerns or are in need of real estate advice. Thanks to Al Sunshine of Miami’s CBS4, South Florida homeowners can call into this homeowner phone bank next Monday to have their questions addressed.

• Who: Oppenheim Law
• What: CBS 4 Neighbors 4 Neighbors Real Estate Phone Bank
• When: August 10th, from 5:00 to 6:30 PM
• Where: From the comfort of your home
• How: Call (305) 597-4404
• Why: Ask legal real estate questions about mortgage modifications and refinancing

Three times in the running, foreclosure attorney Roy Oppenheim has participated on the panel of real estate advisors and this week the entire panel of advisors will be compiled of the attorneys at Oppenheim Law.

So whether you are wondering about your legal options as a homeowner or want to find out the foreclosure process, Oppenheim Law will be there for guidance.

The number to call is (305) 597-4404 between 5:00 and 6:30 next Monday, August 10th. For more information visit www.cbs4.com.

Attorneys advise clients to stay in their homes

By Todd Ruger

Monday, June 29, 2009

SARASOTA COUNTY – Phil Agnes and other lawyers have two words for homeowners facing foreclosure: Stay put.

The flood of foreclosures has clogged the courts, allowing homeowners to stay in their homes while the paperwork goes through the system. Many homeowners are unaware that they can remain at home for months while the foreclosure is in court, attorneys say.

And homeowners willing to challenge the foreclosure sometimes can remain in their homes for more than a year, sometimes more than two years, just by filing a few basic legal documents.

“It’s in everyone’s best interest to stay in the home,” said Agnes, an attorney who volunteers at Gulf Coast Legal Services Inc.

A legal fight lets homeowners save money for post-foreclosure life, when a ruined credit score makes it harder to find a new place to live.

And there are more advantages, attorneys say: Making the legal process costly and time-consuming may push the lender to find alternatives to foreclosure like a loan modification or short sale, the attorneys say.

Staying in the house does not disrupt family life, and the owner takes care of the home, protecting its value for the bank and the neighborhood’s appearance.

Agnes said he sent letters to homeowners immediately after foreclosure filings, and about a third of them were returned because the homeowners had already left.

The Manatee and Sarasota court records are full of cases in which the banks waited months to move forward, even if the owner did not respond.

Agnes said he has two cases where he responded for the homeowners, and the bank has not filed anything in almost a year.

“And they’re still in the house,” he said.

Too rushed to fight

The attorneys for lenders hope owners do not bother to fight the foreclosure.

If a homeowner simply walks away from the property, attorneys can spend hardly any time in court and retake it in as little as 90 days.

Courts across Florida have expedited the process to clear tens of thousands of foreclosures that have been filed since the housing market fell in 2006.

Sarasota and Manatee counties had 46,455 filings since January 2006, far outpacing the final judgments in cases.

Adding to the clog, the lenders often pay law firms a flat fee for each judgment they obtain, so they focus on the easier cases, foreclosure defense attorneys who work in the system say.

When a homeowner files paperwork that takes the case out of the fast track and into the traditional court, lender attorneys sometimes seem to put the case aside.

“They don’t have time to necessarily fight these cases,” Agnes said. “If you just sort of roll over and do nothing, they’re not going to help you.”

And any motion that requires the banks to produce information can delay the case for months. The more difficult the request, the longer the delay.

The going time lag for banks to respond when a homeowner asks to see some types of paperwork? Up to six months.

“They’re very disorganized,” said Christy Greene, an attorney at Advocates For Justice in Jacksonville.

The system is set up to be advantageous to homeowners who fight, Fort Lauderdale area-based attorney Roy Oppenheim said.

The more time it takes the lender to get that judgment, the more chance the bank’s attorney will realize an alternative solution would be faster and cheaper.

“As of today, we’ve not had a client go to the courthouse and lose their home,” Oppenheim said.

Once homeowners appear to have lost the case, filing for bankruptcy will halt the foreclosure, typically for several months.

Digging in

Requesting records from the lenders is more than just a stalling tactic, attorneys say. Homeowners have every right to force lenders to prove they really own the home loan.

An unprecedented number of mortgages were repackaged together and sold as securities, which provides the best opportunities to homeowners trying to fight.

The facts in every case differ, so there are no guarantees on how long a homeowner can stay after they stop paying the mortgage.

Foreclosure defense attorneys can file the basic documents that will buy months in a home.

They usually take the case for a flat fee that could equal one or two months’ mortgage payments, and can avoid the legal pitfalls homeowners can fall into when trying to represent themselves.

For instance, homeowners filing an answer could unwittingly admit to how much they owe, or damage their chances to fight later in the case.

But even homeowners who cannot afford an attorney have been able to successfully buy more time. Many of the required documents can be found online.

One Manatee County couple simply asked for a 45-day extension to file an official response to the foreclosure.

Six months later, the court finally heard arguments on why they might deserve the extra time.

Oppenheim says he hears clients talk about what the lenders told them on the phone about the mortgage. Then he wants to hear for himself, and asks the bank for audio tapes recorded “for training purposes.”

“We may never get them, they may not have them, they might say they lost them,” Oppenheim said.

But just the request means a lot of time digging for the lender’s attorney, who will suddenly find it is much more productive just to focus on other cases in which the homeowner is not staying to fight, he said.

Every motion filed means a hearing on the motion, and those can take a month or two to schedule.

Beyond delays, it just makes sense to show up in court, the attorneys say.

“Any time you are sued you should never just walk away,” Greene said. “But I think the ultimate motive should be for transparency of who really owns my mortgage, and who can I talk to to negotiate.”