Mortgage Rates Set Fresh 2011 Low After Jobs Report

Fixed rate home mortgage loans dropped for the eighth straight week to a new low for 2011 amid concerns of another economic slowdown this year, according to data from Freddie Mac and a report by The Wall Street Journal.

The 30-year fixed-rate mortgage averaged 4.49%, down from 4.55% last week and 2010’s  4.72% average. Rates on 15-year fixed-rate mortgages fell from 3.74% to 3.68%.  15-year fixed-rate mortgages averaged 4.17% in 2010.

Lawyers Get More Time to Finish Foreclosures

Florida foreclosure defense is translating into more time for plantiff bank attorneys to complete a foreclosure, according to an article in the Palm Beach Post.

Due to the reality of Florida’s overloaded court system and swirling questions surrounding the validity of foreclosure paperwork, Fannie Mae is now allowing bank attorneys up to 450 days (about 15 months) for lawyers to complete a foreclosure before fines are levied.  The previous time limit was 185 days, or about six months.

The increased time needed to complete a foreclosure legally and correctly against a homeowner is due in large part to Florida foreclosure defense attorneys working to protect the rights of South Florida homeowners, according to Roy Oppenheim.

Obama Blames Wells Fargo, Bank of America, Chase for Modification Failures

The three largest U.S. mortgage lenders are getting some heat from the Obama administration for the failures of the federal foreclosure-prevention program, according to The Associated Press.

The lackluster performance of Wells Fargo, Bank of America and Chase with helping homeowners lower their mortgage payments has led the Obama administration to remove financial incentives it had given these lenders.

Only about one-third of the 1.4 million people who applied for mortgage modifications through the federal program have had their payments lowered permanently.

Angry Homeowners ‘Foreclose’ on Lenders

Owners of a house in Florida have engineered a “reverse foreclosure” against a Bank of America branch in Naples, according to The New York Times.

The homeowners paid $165,000 in cash to buy their home from the bank and never borrowed against it. But last February, the bank began foreclosure proceedings against them.  The homeowners hired a Florida foreclosure defense attorney and the case against them was dropped, however they were able to recover a judgment for $2,500 in attorney’s fees against the bank.

When the bank didn’t pay, the homeowners’ lawyer showed up at the bank with sheriff deputies and a moving truck to clean out the building.

The bank eventually settled with the homeowners for more than $5,700 to cover the fees and additional costs.

WOW: What a week for folks who are looking for ways to bailout their family from the underwater mortgage mess.  The tide may be turning.

This third week of March 2010 will long be remembered for when tides started to truly turn for those families with underwater mortgages. First, of course the historic health bill was passed by Congress and signed by the President.

Then, Bank of America announced that they would actually reduce principal up to 30% on some 40,000 underwater mortgages. While the news was encouraging for those who would qualify, it represented less than 1% of all mortgages underwater and seems to be merely a indication for other news to follow. http://www.nytimes.com/2010/03/25/business/25housing.html

Obama Admits Problem, Plan Not Working

But then the Obama Administration today finally announced and acknowledged that their original loan modification program designed to help millions only helped maybe 200,000 people.

Government Plan B

Most importantly, however, the government is unveiling a program that will…we hope… truly encourage banks to begin modifications and refinances with significant principal reduction. http://www.nytimes.com/2010/03/26/business/26housing.html?hp Up until now principal reduction claims on mortgage modifications were made by late night cable TV ads, by national modification scamsters and for the most part became at best urban legend.

As we have discussed on the South Florida Law Blog for more than a year, a government program modeled after the programs during the Depression Era is the most likely way to stem the foreclosure crisis. Here in South Florida, only 15% of all foreclosure properties have hit the streets. Either the banks are holding off on putting the inventory back on the streets (creating a shadow inventory) or the foreclosures have yet to be finalized by the courts. Either way, the continuous flow of distressed properties will not let the market return to anything orderly even if you have on-line foreclosure sales and triple the number of buyers which has happened in some counties, like Miami-Dade County, Florida.

Although the details of the “New” government program will only be released later today, between the Obama Administration’s new short sale initiative going into effect in early April and now a “real” modification program with reduced principal backed by the government guaranties there is no reason why anyone would quit and just walk away.

With the tide turning and waters receding: for those folks who may feel like they are drowning, there is hope and it is on the way. As always,  Oppenheim Law is here to help.

Just DO NOT give up. DO NOT despair. DO NOT walk away.

Obviously, we will be discussing all of the latest bailout developments at our free seminar on April 7.  We hope you can join us either in person or through our online broadcast via the Oppenheim Law UStream Channel..

What: Short Sales, Deficiency Judgments + More: Free Real Estate Workshop

When: Wednesday, April 7, 2010 – 6:00 to 7:00 PM

Who: Homeowners facing foreclosure, buyers and sellers

Online: The Oppenheim Law UStream Channel

Live:      2500 Weston Road, Suite 404, Weston, FL 33331

Cost: Free with advanced registration

RSVP: To register email roy@oplaw.net or call 954.384.6114

If you or anyone you know is struggling with real estate questions or may be facing foreclosure, the workshop this Thursday will offer insight to your options and ways to keep your head above water during this time of real estate havoc.

What: August Real Estate and Foreclosure Workshop
Where: 2500 Weston Rd Ste 404, Weston, FL 33331
When: Thursday, August 6th, 2009, 6:00 to 7:00 PM
Registration: To register email roy@oplaw.net or call privately 954-384-6114.

The latest research covered in Thursday’s workshop includes the current study around mortgage modifications in 2008 and also the common thread between foreclosures and social networks.

How do these topics affect me and my home?
Attend the workshop, get answers!

Roy Oppenheim will be available after the workshop to answer any questions you may have about the current real estate condition and foreclosure process.