I’m sorry, is this 1811 or 2011? Back in the day, say the 1800’s, the use of debtor’s prisons was widespread; signatories to the Declaration of Independence, James Wilson and Robert Morris were both later incarcerated, as were 2,000 New Yorkers annually by 1816. Henry Lee III, better known as Light-Horse Harry Lee, a Revolutionary War general, former governor of Virginia, and father of Robert E. Lee, was imprisoned for debt between 1808 and 1809. Sometimes, imprisonment would result from less than sixty cents’ worth of debt.
That was then, this is…then or now?
Last week, The Wall Street Journal published an article about Debtors’ Prisons in 2011. Currently, several U.S. states allow borrowers who are behind on credit-card payments, auto loans and other bills to be jailed. However lawmakers, judges and regulators are beginning to crack down on this practice, which Foreclosure Defense attorney Roy Oppenheim calls “illegal, unconstitutional and un-American.” In this video, Oppenheim explains how that happens and how to make sure that that doesn’t happen to you.
So how can Florida homeowners avoid becoming a part of this debtor nation? Roy Oppenheim says, “Don’t put your head in the sand, by ignoring the situation. If you’re in foreclosure, for example, make sure that deficiency judgment isn’t entered against you. Get legal counsel and make sure you know your rights.”
Foreclosures are back… just like Freddy Krueger. Just like in the horror films when things start to calm down and get back to normal… out pops Freddy Krueger again to scare the living daylights out of you.
Well, that seems to be the case here in Florida as it relates to real estate and foreclosures. The news this past week has been that median prices have increased by approximately 22 percent in the past year in South Florida and sales of homes actually also has increased 12 percent from last year.
During the past six months, however, there has been a drastic reduction in the number of foreclosures that have been processed and brought to market due to the fraud-closure crisis that became apparent last fall.
Fast forward to today and we’re seeing the resurgence of the foreclosure crisis. Many of the foreclosure mills have shut down and are being replaced by new firms, many of whom will not process as many cases. Just in the past ten days we have seen an increase in the number of people served in foreclosure and the scuttlebutt is that the process this time around will be faster and more furious.
The unfortunate aspect of all this is just as the real estate market was starting to find its footing, and some even would say slightly rebound, these new foreclosures will either reduce the price of existing real estate or, in fact, bring down prices another 10 or 20 percent. Of course no one knows for sure how buyers will react. Will such additional foreclosures encourage even more buyers to come into the market because they’re getting even a better deal – or will the number of buyers in the market be somewhat fixed or stagnant; increasing supply and reducing the market price of homes? (more…)
The fraud-closure problem that’s been snow-balling could have been minimized, if only the government paid attention to documented reports!
This internal report, produced years before regulators began investigating the mortgage industry’s practices, said Florida foreclosure attorneys “routinely made” false statements in court attempting to process foreclosures more quickly.
The report said Fannie Mae officials “believe foreclosure counsel are sacrificing accuracy for speed” but did not name any firms, the Journal said.
How ironic that the government has essentially known of the fraudulent, illegal practices of banks and the mortgage industry for five years, and is still trying to fix these catastrophic wrongs. Essentially, this equates to fraud, perpetuated by the idea that you can privatize profits and socialize losses.
And apparently this is what you get when the fox is asked to clean up the hen house.
It is also interesting to note that after the government took complete control of Freddie and Fannie in 2008 amid soaring loan losses, Florida foreclosure filings soared to unprecedented levels. This report proves that the government is to blame for our real estate debacle as much, if not more, than the banks who have taken the brunt of America’s scorn for years. (more…)
Broward County homeowners now face an additional hurdle when trying to complete a loan modification or short sale to avoid a Florida foreclosure.
In Sun-Sentinel reporter Paul Owers’ blog House Keys, Owers discusses the ramifications of Broward County now requiring 10 days’ notice to cancel residential foreclosure auctions according to an administrative order signed by Broward Chief Judge Victor Tobin.
Prior to the Administrative Order, Broward foreclosure auctions could be cancelled only hours before the sale. Now, homeowners looking to cancel a home foreclosure in Broward County are forced to file a motion and be scheduled for a hearing at least 10 business days before the foreclosure sale date.
Oppenheim Law Real Estate Attorney and Legal Bogger Roy Oppenheim was quoted in the article saying, “This will have unintended consequences. Clearly, the homeowner gets the short end of the stick here.”
Effectively, this order limits the time homeowners have to negotiate a short sale or loan modification before their home is put up for auction. Before the order, these deals could be completed up to the last minute.
This order appears to be an attempt to eliminate the backlog of foreclosure cases by limiting the number of homeowners who cancel their foreclosure auctions.
“Roy Oppenheim gets it, and I agree with him,” said Ronald Scott Kaniuk in a comment to the blog. “Courts throughout the state are trying to expedite foreclosures in the mistaken belief that completing foreclosures – even if the process is flawed, improper or ill-advised – is better than having cases continue to proceed on a normal track like any other litigation.” (more…)
“Not a single financial executive has gone to jail”…that is how Producer Charles Ferguson rocked the Oscars by starting his acceptance speech for winning best feature documentary for “Inside Job,” a film about the 2008 financial system meltdown. How appropriate.
Meanwhile, Florida real estate is no red carpet winner when it comes to the housing market. Oppenheim Law announces its real estate webinar streaming live Wednesday March 9th at 6 pm, designed to help Florida homeowners use today’s economic conditions to their advantage and fashion their own bailouts.
In this timely workshop, Oppenheim shares fresh insights, including:
How the rising price of oil will affect the American job market, and in turn affect the housing market.
What these trends mean for Florida foreclosure defense and how homeowners can use these events to their advantage to engineer and structure a short sale.
The impact that a sluggish start to the national “selling season” will have on a local level.
Why home prices will continue to drop in the months ahead.
Florida real estate is not immune to the financial system melt down or the recent world events, according to Florida Foreclosure Defense Attorney and Legal Blogger Roy Oppenheim.
As revolutionary tremors continue to spread through the Middle East and actual tremors rocked New Zealand with a 6.3 magnitude earthquake, Oppenheim Law offers insight on how these international events could impact Florida’s real estate market as well as sharing the latest legal trends in foreclosure defense and short sales strategies. (more…)
This was a historical week. Besides marking the 25th anniversary of the explosion of the Space Shuttle Challenger – an event that itself marked the end of an era; this week’s headlines included Obama’s new rules/new economy State of the Union; Friday marked the first time in history that part of the Internet went dead as Egypt “unplugged itself” in a move to settle political unrest and finally…the Financial Crisis Inquiry Commission delivered the results of its investigation into the causes of the financial and economic crisis.
Technology, politics and the economy seem to be unfolding into one.
First let’s point out, there is a lot of BLAME going on, starting with the 500-page FCIC document, or should I say docu-drama. The in-depth analysis covers how we got to where we are today as it relates to the financial crisis, foreclosure crisis and housing crisis.
As taken from the official FCIC press release:
The Commission concluded that the crisis was avoidable and was caused by:
Widespread failures in financial regulation, including the Federal Reserve’s failure to stem the tide of toxic mortgages;
Dramatic breakdowns in corporate governance including too many financial firms acting recklessly and taking on too much risk;
An explosive mix of excessive borrowing and risk by households and Wall Street that put the financial system on a collision course with crisis;
Key policy makers ill prepared for the crisis, lacking a full understanding of the financial system they oversaw;
And systemic breaches in accountability and ethics at all levels.
But let’s be clear on BLAME; the last person that should be blamed in this mess is the homeowner. (more…)
It’s still a buyer’s market. That’s the conclusion of consumers in a new Gallup poll that reveals 67 percent of Americans feel now is a “good time” to buy a house. That hasn’t changed much since April 2009.
So despite harder-to-come-by financing and the possibility of a housing double-dip, it seems historically low interest rates and bargain basement home prices are winning over public opinion. Interest rates may or may not rise, but the bargain basement prices are likely to continue as home foreclosures are reaching record highs.
Foreclosure headlines are telling. South Florida filings dropped 41 percent in 2010 due to the foreclosure freeze. And some are asking if foreclosure lawyers’ misdeeds are being ignored in Florida. Despite the freeze and other legal questions, though, Florida still ranks second in the number of foreclosures in 2010.
And the worst may be yet to come. News reports are citing studies that show real estate short sales are set to increase in 2011 as banks attempt to dispose of defaulting loans without foreclosing. And many may get caught flat-footed in the South Florida foreclosure wave.
As you read all of these headlines, keep in mind that if it’s a buyer’s market, that also means it’s a seller’s market. And with all the foreclosures hitting the market, it’s a good time for a buyer to seek a short sale purchase. Oppenheim Law’s sister company Weston Title & Escrow has been very successful closing short sale deals and guiding clients through the process of both buying and selling short sales. (more…)
