South Florida has recently been experiencing what can very well be considered a real estate renaissance; a second awakening of the real estate market after the horror that was called the foreclosure crisis. Unbelievable. Continue reading
If you thought that banks and the federal government were going to give up, think again.
Let’s say you are a distressed homeowner. Let’s say you have a hefty mortgage. Let’s also say that you are working with your bank on a loan modification. The chances are that one fine day you might receive a letter from a new owner of your mortgage and servicer. The letter will inform you that your mortgage was sold by your lender to a private equity firm and that a lawsuit is forthcoming, seeking to foreclose on your home. Right when the housing market was finally recovering, thousands of homeowners are now confronted with this new unfortunate chapter engineered by banks and by the federal government to deal with “underwater” mortgages: troubled loans are sold for a discount price at federal auctions to private equity firms, entities that are far more “creative” than banks in recovering from delinquent borrowers. Hence, the new breed of sharks. Continue reading
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If you thought they were gone, think again. The foreclosure phenomenon known as a ‘zombie foreclosure’ has proven that it is here to stay. A zombie foreclosure occurs when homeowners leave their homes when they receive a notice of foreclosure only to find out years later that the bank decided not to foreclose on the property; leaving title in the homeowner’s name.
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The Truth in Lending Act (TILA) gives home loan borrowers a three-day right to rescind, or cancel, a loan transaction. For these first three days, this right is unconditional, without any caveats. After the three days run out, there is a catch; the borrower has the right to rescind only if the lender has failed to satisfy TILA’s disclosure requirements. Even if the required disclosures are never made, the right of rescission will expire after three years; thus, straying from the pack.